RTTNews | Nov 6, 2020 05:25AM EST

05:24 Friday, November 6, 2020 (RTTNews.com) - Magna International Inc. (MGA, MG.TO) reported third quarter adjusted earnings per share of $1.95, 38% higher than a year ago. On average, 15 analysts polled by Thomson Reuters expected the company to report profit per share of $1.35, for the quarter. Analysts' estimates typically exclude special items. Adjusted EBIT increased to $778 million from $558 million, a year ago. The company said the increase mainly reflected higher margin earned on sales, the benefit of COVID-19 related government employee support programs, and the negative impact of the labour strike at General Motors that was reflected in results in the third quarter of 2019.

Third quarter sales were $9.13 billion, down 2% from prior year. Analysts expected revenue of $9.08 billion, for the quarter.

For fiscal 2020, the company now projects total sales of $31.5 billion - $32.5 billion, revised from its previous guidance range of $30.0 billion - $32.0 billion. Adjusted EBIT Margin is now expected in a range of 4.0% - 4.4%, up from prior guidance range of 2.9% - 3.3%.

The Board declared a third quarter dividend of $0.40 per common share, payable on December 4, 2020 to shareholders of record as of the close of business on November 20, 2020.

The Board approved a new Normal Course Issuer Bid to purchase up to 29.6 million of common shares, representing approximately 10% of public float of common shares. The NCIB is expected to commence on or about November 15, 2020 and will terminate one year later.

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