'Our strong third quarter results reflect the actions we have taken to reduce discretionary and structural costs in the face of lower levels of vehicle production,’ said CEO Don Walker.
Speaking at the results presentation, he said the company expects its cost structure to continue to drive profitability and returns as vehicle volumes recover.
Despite his bullish tone, the results were stronger than Magna expected in the third quarter. The company said it was able to increase production, and benefitted from coronavirus-related employee support programmes.
Margins rose across the company. The third quarter of 2019 was hit by a strike at General Motors, which depressed performance in that quarter.
Despite the strictures of coronavirus, sales in the company's seating business grew very slightly, by 1.1%, between the third quarter of 2019 and the third quarter of 2020. This division turned over $1.3bn in the third quarter of 2020. Adjusted EBIT in the division rose by 17.9% to $66 m, a $10m rise on the 2019 quarter.
Looking to the rest of the financial year, the company estimates US light vehicle production will reach around 12.7m units. In Europe, production could hit 16.1m units in 2020.