Benzinga | Nov 5, 2021 11:25AM EDT

Magna International Q3 Earnings Lags Street View

* Magna International Inc (NYSE:MGA) reported a third-quarter FY21 sales decline of 13% year-on-year, to $7.9 billion, missing the analyst consensus of $9.3 billion.

* Results were negatively impacted by lower light vehicle production substantially due to continued industry semiconductor chip shortages, production inefficiencies driven by unpredictable OEM production schedules, increased production and commodity costs.

* Global light vehicle production declined 12%, including decreases of 20% in Europe, 19% in North America, and 12% in China.

* Body Exteriors & Structures segment sales decreased 17.44% Y/Y, Power & Vision fell 8.1%, Seating Systems declined 12.3%, and Complete Vehicles sales declined 10.5%.

* Income from operations before income taxes for the quarter was $27 million versus $436 million last year.

* Adjusted EBIT was $229 million with an adjusted EBIT margin of 2.9%.

* Adjusted EPS of $0.56 missed the analyst consensus of $1.59.

* The company's third-quarter dividend of $0.43 per share is payable on December 3, 2021, to shareholders of record on November 19, 2021.

* Outlook: Magna sees FY21 total sales of $35.4 billion - $36.4 billion, below the consensus of $38.98 billion. In October, the company reduced its sales outlook from the prior view of $38.0 billion - $39.5 billion.

* Price Action: MGA shares traded lower by 0.25% at $83.7 on the last check Friday.