Shares of Magna International (MG) fell 17% after the Canadian automotive parts manufacturer issued disappointing fourth-quarter earnings.
The Aurora, Ontario-based company blamed the poor quarterly results on production volatility, rising costs, and supply chain disruptions.
Magna, which reports its earnings in U.S. dollars, said it earned $95 million U.S. or $0.33 U.S. per share for the fourth quarter ended December 31, 2022. That was down from $464 million U.S. or $1.54 U.S. per share in the final three months of 2021.
Sales in Q4 2022 totalled $9.57 billion U.S., up from $9.11 billion U.S. a year earlier.
Analysts, on average, had expected Magna to report a profit of $1.02 U.S. per share, according to Refinitiv data.
Looking forward, Magna said its margins for 2023 are expected in a range of between 4.1% and 5.1% compared with 5.6% in the fourth quarter of 2021.
The poor Q4 numbers pushed Magna’s stock down 17% to $72.16 per share. The stock is now down 26% over the last 12 months.
