Magna Announces Outlook

AURORA, Ontario, January 11, 2017 /PRNewswire/ --

- Expect Continued Sales Growth - Over $43 Billion in Total Sales by 2019 

- Strong Free Cash Flow Generation Anticipated Over Next Three Years 

Magna International Inc. (TSX: MG; NYSE: MGA) today announced its financial outlook for 2017, along with sales expectations for 2019. In this outlook we have assumed no material unannounced acquisitions or divestitures. In addition, we have assumed that foreign exchange rates for the most common currencies in which we conduct business relative to our U.S. dollar reporting currency will approximate year end 2016 rates.

OUTLOOK 

   
                                                 2017                           2019
    Light Vehicle Production (Units)
                     North America           17.7 million                   18.4 million
                     Europe                  21.7 million                   22.5 million

    Production Sales
                                                                           $20.4 - $21.2
                     North America       $19.2 - $19.8 billion                billion
                                                                           $10.1 - $10.7
                     Europe               $8.7 - $9.1 billion                 billion
                                                                            $3.2 - $3.5
                     Asia                 $2.2 - $2.4 billion                 billion
                                                                            $0.4 - $0.6
                     Rest of World        $0.3 - $0.4 billion                 billion
                     Total Production                                      $34.1 - $36.0
                     Sales               $30.4 - $31.7 billion                billion

                                                                            $6.6 - $7.1
    Complete Vehicle Assembly Sales       $2.7 - $3.0 billion                 billion

                                                                           $43.5 - $46.2
    Total Sales                          $36.0 - $37.7 billion                billion

    EBIT Margin(1)                         Approximately 8%

                                           Approximately $90
    Interest Expense                            million

    Tax Rate                                   25% - 26%

                                           Approximately $2
    Capital Spending                            billion

    (1)

                              Earnings Before Interest and Taxes ("EBIT") represents
                              Net Income before income taxes and interest expense, net.
                              EBIT Margin is the ratio of EBIT to Total Sales.