Magna International reported a better-than-expected fourth-quarter profit, driven by higher sales in Europe and the launch of new cars for BMW and Jaguar.
Magna assembles cars under contract from motor vehicle manufacturers and counts General Motors, Volkswagen Group, BMW, Jaguar Land Rover and Ford Motor among its top customers.
Sales at Magna's vehicle assembly business in Graz, Austria, more than doubled during the reported quarter, helped by the 2017 launch of the BMW 5 series and Jaguar's compact SUV, the E-Pace.
Magna's total sales rose 12 percent to a $10.39 billion, its highest ever, beating analysts’ estimates of $10.12 billion, according to Thomson Reuters.
Magna says its complete vehicle assembly sales increased 129 percent in the fourth quarter
During the reported quarter, light vehicle production increased 7 percent in Europe and fell 5 percent in North America.
Car registrations in the European Union rose 3.4 percent in 2017 to more than 15 million vehicles for the first time since 2007.
Net income attributable to Magna rose to $556 million, or $1.53 per share, in the fourth quarter ended Dec. 31., from $478 million, or $1.24 per share, a year earlier.
Excluding items, the company earned $1.57 per share, beating analysts’ estimate by two cents.
Magna ranks No. 3 on the Automotive News Europe list of the top 100 global suppliers, with worldwide parts sales to automakers of $36.45 billion in 2016.