GlobeNewswire Inc | Oct 20, 2021 07:32AM EDT

October 20, 2021

AURORA, Ontario, Oct. 20, 2021 (GLOBE NEWSWIRE) -- Magna International Inc. (TSX: MG; NYSE: MGA) today announced that it has updated its 2021 outlook to reflect declines in anticipated 2021 light vehicle production, including 7% and 9% in North America and Europe, respectively, in each case relative to expected light vehicle production levels disclosed in our press release dated August 6, 2021. The lower expected light vehicle production is mainly due to the impacts of ongoing semiconductor chip shortages and the COVID-19 pandemic on the global automotive supply chain.

As a result of the lower assumed light vehicle production, as noted above, we now expect total sales for 2021 to be in the range of $35.4 to $36.4 billion, compared to $38.0 to $39.5 billion in our August outlook. Adjusted EBIT Margin(1) is now expected to be in the 5.1% to 5.4% range, compared to 7.0% to 7.4% in our August outlook primarily as a result of the decline in expected total sales, ongoing operational inefficiencies driven by unpredictable OEM production schedules, increased production costs, higher commodity costs and a provision on engineering service contracts with Evergrande.

We will report our financial results for the third quarter of 2021 on November 5, 2021.

(1)Adjusted EBIT Margin is the ratio of Adjusted EBIT to Total Sales

TAGSOutlook, sales, vehicle production, semiconductor chip

INVESTOR CONTACTLouis Tonelli, Vice-President, Investor Relations louis.tonelli@magna.com, 905.726.7035

MEDIA CONTACT Tracy Fuerst, Vice President, Corporate Communications and PRtracy.fuerst@magna.com, 248.761.7004

ABOUT MAGNAMagna is more than one of the worlds largest suppliers in the automotive space. We are a mobility technology company with a global, entrepreneurial-minded team of 158,000 employees and an organizational structure designed to innovate like a startup. With 60+ years of expertise, and a systems approach to design, engineering and manufacturing that touches nearly every aspect of the vehicle, we are positioned to support advancing mobility in a transforming industry. Our global network includes 347 manufacturing operations and 87 product development, engineering and sales centers spanning 28 countries.

For further information about Magna, please visit www.magna.com or follow us on Twitter @MagnaInt.

FORWARD-LOOKING STATEMENTSCertain statements in this press release constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements"). Any such forward-looking statements are intended to provide information about management's current expectations and plans and may not be appropriate for other purposes. Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, strategic objectives or economic performance, or the assumptions underlying any of the foregoing, and other statements that are not recitations of historical fact. We use words such as "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "believe", "intend", "plan", "aim", "forecast", "outlook", "project", "estimate", "target" and similar expressions suggesting future outcomes or events to identify forward-looking statements. The following table identifies the material forward-looking statements contained in this document, together with the material potential risks that we currently believe could cause actual results to differ materially from such forward-looking statements. Readers should also consider all of the risk factors which follow below the table:

Material Material Potential Risks Related to Applicable Forward-LookingForward-Looking StatementStatement * Light vehicle sales levelsLight vehicle * Supply disruptions, including as a result of the currentproduction semiconductor chip shortage * Production allocation decisions by OEMs

* Economic impact of COVID-19 on consumer confidence * Supply disruptions, including as a result of the current semiconductor chip shortageTotal Sales * Concentration of sales with six customers * Shifts in market shares among vehicles or vehicle segments * Shifts in consumer ?take rates? for products we sell

* Same risks as for Total Sales above * Operational underperformance * Higher costs incurred to mitigate the risk of supply disruptions, including: materials price increases; higher-priced substitute supplies; premium freight costs to expedite shipments; production inefficiencies due toAdjusted EBIT production lines being stopped/restarted unexpectedly basedMargin on customers? production schedules; price increases from sub-suppliers that have been negatively impacted by production inefficiencies; and potential claims against us if customer production is disrupted * Price concessions * Commodity cost volatility * Higher labour costs * Tax risks

Forward-looking statements are based on information currently available to us and are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. While we believe we have a reasonable basis for making any such forward-looking statements, they are not a guarantee of future performance or outcomes. In addition to the factors in the table above, whether actual results and developments conform to our expectations and predictions is subject to a number of risks, assumptions and uncertainties, many of which are beyond our control, and the effects of which can be difficult to predict, including, without limitation:

Risks Related to theAutomotive Industry

* economic cyclicality; * regional production volume declines, including as a result of the COVID-19 pandemic; * intense competition; * potential restrictions on free trade; * trade disputes/tariffs;

Customer and Supplier RelatedRisks Warranty / Recall Risks * concentration of sales with six customers; * costs related to repair or replacement of * emergence of potentially defective products, including due to a disruptive Electric recall; Vehicle OEMs; * warranty or recall costs that exceed warranty * OEM consolidation and provision or insurance coverage limits; cooperation; * product liability claims; * shifts in market shares among vehicles or vehicle Acquisition Risks segments; * shifts in consumer "take * competition for strategic acquisition rates" for products we targets; sell; * inherent merger and acquisition risks; * quarterly sales * acquisition integration risk; fluctuations; * potential loss of any Other Business Risks material purchase orders; * a deterioration in the * risks related to conducting business through financial condition of joint ventures; our supply base, * our ability to consistently develop and including as a result of commercialize innovative products or the COVID-19 pandemic; processes; * our changing business risk profile as aManufacturing Operational result of increased investment inRisks electrification and autonomous driving, including: higher R&D and engineering costs, * product and new facility and challenges in quoting for profitable launch risks; returns on products for which we may not have * operational significant quoting experience; underperformance; * risks of conducting business in foreign * restructuring costs; markets; * impairment charges; * fluctuations in relative currency values; * labour disruptions; * tax risks; * COVID-19 shutdowns; * reduced financial flexibility as a result of * supply disruptions, an economic shock; including with respect to * changes in credit ratings assigned to us; semiconductor chips; * higher costs to mitigate Legal, Regulatory and Other Risks supply disruptions; * climate change risks; * antitrust risk; * attraction/retention of * legal claims and/or regulatory actions skilled labour and against us; and leadership succession; * changes in laws and regulations, including those related to vehicle emissions or made asIT Security/Cybersecurity a result of the COVID-19 pandemic.Risk

* IT/Cybersecurity breach; * Product Cybersecurity breach;

Pricing Risks

* pricing risks between time of quote and start of production; * price concessions; * commodity cost volatility; * declines in scrap steel/ aluminum prices;

In evaluating forward-looking statements or forward-looking information, we caution readers not to place undue reliance on any forward-looking statement. Additionally, readers should specifically consider the various factors which could cause actual events or results to differ materially from those indicated by such forward-looking statements, including the risks, assumptions and uncertainties above which are:

-- discussed under the Industry Trends and Risks heading of our most current Managements Discussion and Analysis; and -- set out in our Annual Information Form filed with securities commissions in Canada, our annual report on Form 40-F filed with the United States Securities and Exchange commission, and subsequent filings.

Readers should also consider discussion of our risk mitigation activities with respect to certain risk factors, which can be also found in our Annual Information Form.