Aurora, Ontario – Sales at global automotive seat and interiors company Magna fell by 5.8% and adjusted EBIT was down 34% in the first quarter of 2022.
Falling auto production hit Magna in Q1
Sales were $9.6bn in the quarter, and adjusted EBIT was $507m. The company reports in US$.
Magna is almost entirely reliant on business from the automotive industry, which shrank by 7% globally and 16% in Europe, the company said. Despite this, CEO Swamy Kotagiri said: 'First quarter results came in ahead of our expectations, with our sales again outpacing global light vehicle production. However, due to current geopolitical events and coronavirus lockdowns in China, industry estimates for vehicle production have been lowered and we are facing inflation and commodity headwinds.'
In the company's seating business, sales rose by 5.6%to $1.4bn in the first quarter of 2022. This was as a result of the launch of the new Jeep Grand Cherokee, BYD Qin Plus and Skoda Fabia.
Adjusted EBIT in the division dropped 10.9% to $49m in the first quarter of 2022. This compares with $55m in the equivalent period in 2021. Adjusted EBIT in Q1 2022 was down because of higher labour, commodity and freight costs.