![]() job market should keep fueling the auto industry's growth. However, low interest rates, cheap gas and a firming U.S. The auto-parts business is highly cyclical, and complete vehicle assembly accounts for just 7% of Magna's revenue, so any bump from the Apple Car, which isn't expected to hit the market until 2019, would be muted, at least at first. The company forecasts revenue of $34.6 billion to $36.3 billion, up about 8% to 13% from its 2015 total. This year, Magna expects overall North American vehicle production to rise to 18 million units from 17.5 million in 2015, while European production remains flat. Speaking of dividends, Magna is known for its shareholder friendliness: In addition to its quarterly payout, which has doubled in the past five years and yields 2.3%, the company continues to buy back shares, to the tune of 10.6 million in 2015, at a cost of $515 million. dollars but does plenty of business in euros and Canadian dollars, and the greenback gained against those currencies).Įarnings-per-share (EPS) from continuing operations came in at $1.19, compared to $1.23 a year ago, but that still topped expectations and let management hike the quarterly dividend 14% to $0.25 a share. ![]() Its fourth-quarter revenue slipped 3%, to $8.56 billion, but rose 6% from a year earlier excluding currency rates (Magna reports in U.S. The company has been riding the wider automotive rebound. "As one of the only outsourced design, engineering and assembly operations in the world, Magna Steyr is in a unique position to help Apple, Google, Uber and others who may want to 'make' their own cars (but don't want to get their hands really dirty) come to market quickly-thus playing a similar role to what Foxconn does today for Apple in the smartphone industry."įounded in 1957 and headquartered in Aurora, Ontario, Magna boasts a $17-billion market capitalization and operations in 29 countries. In a note quoted in a May 6, 2015, Wall Street Journalarticle, Morgan Stanley analyst Ravi Shanker wrote: This isn't the first time Magna Steyr has been linked to Apple and other leading tech stocks. If true, that puts it in more or less the same neighborhood as Magna Steyr's Vienna factory. The news came after another German publication, Frankfurter Allgemeine,said Apple has a secret car lab in Berlin. Last week, German newspaper Handelsblattreported that talks had broken off between Apple and both Daimler and BMW to produce the Apple Car, leaving Magna Steyr as the main contender. What separates Magna from other component makers is its Magna Steyr division, which assembles entire vehicles under contract. Want to be alerted before Cramer buys or sells AAPL? Learn more now. Apple is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio.
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