Magna reports increased income on lower sales in Q1

Cites weakening of certain currencies as a significant cause of the 7% year-on-year (y/y) sales decline

Magna International's reported first-quarter earnings include USD8.33 billion in sales, down 7% from USD8.96 billion in the same period of 2014. However, the Canada-based global automotive parts supplier's adjusted EBIT increased to USD642 million in the first quarter, from USD605 million in January−March last year. Income from operations before income taxes increased to USD631 million in the first quarter, up from USD605 million in the same period of 2014. Magna's net income also jumped, from USD393 million in the first quarter last year to USD465 million this time. Magna cites weakening of certain currencies as a significant cause of the 7% year-on-year (y/y) sales decline in the first quarter, as foreign currency translation reduced sales by about USD880 million, compared with the first quarter of 2014.