Aurora, Ontario — Magna, an automotive seating and interiors company, generated sales of $9.3 bn in the third quarter of 2019. This is lower by 3% than the same period in 2018.
Adjusted EBIT across the business fell 20% and hit $558m the third quarter of 2019. The company reports in US $.
The company blamed a strike by workers at GM in North America for the loss of earnings. It added that this will continue into the fourth quarter of the year because the strike had not been resolved by the start of October.
Away from the strike the fall in sales was in line with the drop in worldwide sales in the automotive industry in 2019.
The company's seating systems business had sales which rose by 4% between the third quarter of 2018 and 2019. They were $1.3 bnm in the third quarter of 2019. This compares with $1.2 bn the third quarter 2018.
At the same time, adjusted EBIT in the division declined by 19%%. It hit $56.0m in the third quarter of 2019. This compares with $69m the 2018 period.
The numbers were boosted by new BMW X5; X7 and Lynk & Co 03 models. These positive factors were offset by lower global light vehicle production, the end of production of the Chevrolet Cruze and the GM strike. Dollar sales were hit by currency translation effects as the Canadian dollar and Turkish lira all weakened against the dollar.
