Magna Updates 2022 Outlook to Reflect Preliminary Full Year 2022 Results

Magna International Inc. announced that it has updated its 2022 outlook to reflect an expected Adjusted EBIT Margin below the range disclosed in its press release dated November 4, 2022.
Based on preliminary unaudited results, total sales for 2022 were approximately $37.8 billion, compared to the range of $37.4 to $38.4 billion disclosed in its November outlook. However, Adjusted EBIT Margin for 2022 is expected to be approximately 4.3%, which is below the 4.8% to
5.0% range disclosed in its November outlook. The reduced Adjusted EBIT Margin reflects a number of items, including: decreased contribution on lower sales; higher net warranty costs; provisions against certain accounts receivable and other balances; higher net engineering expense
due to the revised timing of both spending and customer recoveries; operating underperformance at certain facilities; and higher labour and other operational inefficiencies as a result of the continued unpredictability of our customers’ production schedules. Adjusted net income attributable to Magna is also impacted by the factors above.
Magna will report its financial results for the fourth quarter and full year 2022 on February 10, 2023