Magna Q2 Profit Rises Despite Tariffs, Raises 2018 Sales Outlook

Magna International reported a rise in second-quarter profit to $379 million, or $1.35 per diluted share, exceeding analyst expectations with adjusted earnings of $1.44 per share. Despite a 3% decline in sales to $10.63 billion due to lower vehicle production in North America and Europe and tariff-related costs, the company improved its full-year sales forecast to between $40.4 billion and $42 billion, up from a prior range of $40 billion to $41.6 billion. CEO Swamy Kotagiri highlighted that performance initiatives and cost-cutting measures, including restructuring and reduced capital spending, helped offset industry headwinds and trade policy uncertainties. Magna’s earnings benefited from productivity improvements, commercial recoveries, and favorable currency impacts, while capital expenditures for 2025 are expected to be slightly lower than previously forecasted. The company continues to navigate challenges from U.S. President Donald Trump's tariffs, which have pressured auto supply chains, but remains confident in its operational momentum for the rest of the year. Magna’s diverse automotive product portfolio and strong financial health underpin its optimistic outlook despite ongoing market uncertainties.