VW says it will withdraw business from Magna if it takes over Opel/Vauxhall.
(Reuters) -- Canadian auto parts maker Magna International Inc. cut its revenue forecast for 2015, hurt by weak demand from Europe.
Demand for cars picked up in Europe last year after a six-year slump, boosted by incentives from governments and carmakers. However, demand remains much below the levels seen before the eurozone crisis as countries in the region struggle to kick-start growth.
Magna also approved a two-for-one stock split today and said the split would be implemented through a stock dividend, the company said in a statement.
The company raised its quarterly dividend to 44 cents per share from 38 cents. After the split, shareholders will get 22 cents per share.
Magna cut its 2015 forecast for total production sales -- or revenue from its core vehicle parts business -- to $28.2 billion-$29.5 billion from $29.2 billion-$30.5 billion.
It lowered its forecast for production sales in Europe to $8.3 billion-$8.7 billion from $9 billion-$9.4 billion.
The company also cut its total revenue forecast to $33.1 billion-$34.8 billion from $34.4 billion-$36.1 billion.
Net income attributable to Magna rose 11 percent to $509 million, or $2.44 per share, in the fourth quarter ended Dec. 31.
Sales rose about 2 percent to $9.39 billion.
Analysts on average had expected a profit of $2.24 per share and revenue of $9.08 billion, according to Thomson Reuters I/B/E/S.