An anonymous director reports

MAGNA ANNOUNCES THIRD QUARTER AND YEAR TO DATE RESULTS

Magna International Inc. has released its financial results for the third quarter ended Sept. 30, 2015 (all amounts are in U.S. dollars).

  
                                       FINANCIAL HIGHLIGHTS
                         (In millions of U.S. dollars, except per share)

                                   Three months ended Sept. 30,   Nine months ended Sept. 30,
                                            2015          2014           2015           2014

Sales                                   $  7,661      $  8,247      $  23,566      $  25,613
Adjusted EBIT                                565           627          1,873          1,967
Income from continuing operations
before income taxes                          680           611          2,027          1,909
Net income from continuing
operations attributable to Magna
International                                470           487          1,463          1,408
Diluted earnings per share
from continuing operations                  1.13          1.14           3.53           3.21

Basis of presentation

In the third quarter of 2015, the company sold substantially all of its interiors operations (excluding seating operations). The assets and liabilities, and operating results for the previously reported interiors operations are presented as discontinued operations and have therefore been excluded from both continuing operations and segment results for all periods presented in the attached financial statements. This press release reflects the results of continuing operations, unless otherwise noted.

Three months ended Sept. 30, 2015

The company posted sales of $7.7-billion for the third quarter ended Sept. 30, 2015, a decrease of 7 per cent from the third quarter of 2014. The weakening of certain currencies against U.S.-dollar reporting currency, in particular the euro and Canadian dollar, had a significant negative impact on reported sales for the third quarter of 2015. Foreign currency translation reduced sales by approximately $870-million, as compared with the third quarter of 2014. Excluding the impact of foreign currency translation, sales increased 3 per cent in the third quarter of 2015, compared with the third quarter of 2014. North American light vehicle production increased 4 per cent to 4.3 million units and European light vehicle production increased 4 per cent to 4.7 million units in the third quarter of 2015, compared with the third quarter of 2014.

Excluding the impact of foreign currency translation, complete vehicle assembly sales decreased 18 per cent in the third quarter of 2015, compared with the third quarter of 2014. Complete vehicle assembly volumes decreased 28 per cent to approximately 23,000 units.

During the third quarter of 2015, income from continuing operations before income taxes was $680-million, an increase of $69-million over the third quarter of 2014. Net income from continuing operations attributable to Magna International was $470-million and diluted earnings per share from continuing operations were $1.13, decreases of $17-million and one cent, respectively, both compared with the third quarter of 2014.

For the third quarter of 2015, other (income) expense positively impacted income from continuing operations before income taxes by $124-million, net income from continuing operations attributable to Magna International by $68-million and diluted earnings per share from continuing operations by 16 cents, respectively.

For the third quarter of 2014, other (income) expense negatively impacted income from continuing operations before income taxes by $7-million, net income from continuing operations attributable to Magna International by $6-million and diluted earnings per share from continuing operations by one cent, respectively.

During the third quarter ended Sept. 30, 2015, the company generated cash from operations of $563-million before changes in operating assets and liabilities, and $33-million in operating assets and liabilities. Total investment activities for the third quarter of 2015 were $434-million, including $360-million in fixed asset additions and $74-million in investments and other assets.

Nine months ended Sept. 30, 2015

The company posted sales of $23.6-billion for the nine months ended Sept. 30, 2015, a decrease of 8 per cent from the nine months ended Sept. 30, 2014. The weakening of certain currencies against U.S.-dollar reporting currency, in particular the euro and Canadian dollar, had a significant negative impact on reported sales for the first nine months of 2015. Foreign currency translation reduced sales by approximately $2.6-billion, as compared with the first nine months of 2014. Excluding the impact of foreign currency translation, sales increased 2 per cent in the first nine months of 2015, compared with the first nine months of 2014.

During the nine months ended Sept. 30, 2015, vehicle production increased 2 per cent to 12.9 million units in North America and increased 2 per cent to 15.3 million units in Europe, each compared with the first nine months of 2014.

Excluding the impact of foreign currency translation, complete vehicle assembly sales decreased 12 per cent in the first nine months of 2015, compared with the first nine months of 2014. Complete vehicle assembly volumes decreased 23 per cent to approximately 79,000 units.

During the nine months ended Sept. 30, 2015, income from continuing operations before income taxes was $2.0-billion, net income from continuing operations attributable to Magna International was $1.5-billion and diluted earnings per share from continuing operations were $3.53, increases of $118-million, $55-million and 32 cents, respectively, each compared with the first nine months of 2014.

For the nine months ended Sept. 30, 2015, other (income) expense positively impacted income from continuing operations before income taxes by $181-million, net income from continuing operations attributable to Magna International by $110-million and diluted earnings per share from continuing operations by 26 cents, respectively.

For the nine months ended Sept. 30, 2014, other (income) expense negatively impacted income from continuing operations before income taxes by $40-million. In addition, for the nine months ended Sept. 30, 2014, other (income) expense and the impact of the Austrian tax reform together negatively impacted net income from continuing operations attributable to Magna International by $68-million and diluted earnings per share from continuing operations by 16 cents, respectively.

During the nine months ended Sept. 30, 2015, the company generated cash from operations before changes in operating assets and liabilities of $1.9-billion, and invested $587-million in operating assets and liabilities. Total investment activities for the first nine months of 2015 were $1.1-billion, including $987-million in fixed asset additions, $152-million in investments and other assets, and $1-million to purchase subsidiaries.

A more detailed discussion of consolidated financial results for the third quarter and nine months ended Sept. 30, 2015, is contained in the management's discussion and analysis of results of operations and financial position, and the unaudited interim consolidated financial statements and notes thereto.

Dividends

Yesterday, the board of directors declared a quarterly dividend of 22 cents with respect to outstanding common shares for the quarter ended Sept. 30, 2015. This dividend is payable on Dec. 11, 2015, to shareholders of record on Nov. 27, 2015.

Other matters

Subject to approval by the Toronto Stock Exchange and the New York Stock Exchange, the board of directors approved a normal course issuer bid to purchase up to 40 million common shares, representing approximately 9.9 per cent of the company's public float of common shares. This normal course issuer bid is expected to commence on or about Nov. 13, 2015, and will terminate one year later.

Updated 2015 outlook

The table reflects the 2015 outlook and 2014 actual results, both from continuing operations.

                                   UPDATED 2015 OUTLOOK

                                                         2015 outlook         2014 actual
Light vehicle production (units)
North America                                            17.4 million        17.0 million
Europe                                                   20.5 million        20.1 million
Production sales
North America                          $17.4-billion to $17.8-billion       $17.4-billion
Europe                                   $7.0-billion to $7.3-billion        $8.8-billion
Asia                                     $1.5-billion to $1.6-billion        $1.6-billion
Rest of world                            $400-million to $500-million        $700-million
Total production sales                 $26.3-billion to $27.2-billion       $28.5-billion
Complete vehicle assembly sales         $2.3-billion to  $2.5-billion        $3.2-billion
Total sales                           $31.3-billion to  $32.6-billion       $34.4-billion
Operating margin                                   Approximately 7.7%                7.7%
Tax rate                                            Approximately 26%               25.0%
Capital spending                           Approximately $1.5-billion        $1.5-billion

In this 2015 outlook, in addition to 2015 light vehicle production, the company has assumed no material acquisitions or divestitures other than the divestiture of substantially all of its interior operations as discussed above. In addition, the company has assumed that foreign exchange rates for the most common currencies in which it conducts business relative to U.S.-dollar reporting currency will approximate current rates.

                                   CONSOLIDATED STATEMENTS OF INCOME
                            (In millions of U.S. dollars, except per share)

                                               Three months ended Sept. 30,  Nine months ended Sept. 30,
                                                      2015            2014         2015            2014

Sales                                            $   7,661      $    8,247   $   23,566       $  25,613
Costs and expenses
Cost of goods sold                                   6,593           7,075       20,223          21,975
Depreciation and amortization                          197             214          589             631
Selling, general and administrative                    358             382        1,036           1,192
Interest expense, net                                    9               9           27              18
Equity income                                          (52)            (51)        (155)           (152)
Other (income) expense, net                           (124)              7         (181)             40
Income from continuing operations before
income taxes                                           680             611        2,027           1,909
Income taxes                                           211             125          569             503
Net income from continuing operations                  469             486        1,458           1,406
Income (loss) from discontinued operations,
net of tax                                             119             (17)          74             (35)
Net income                                             588             469        1,532           1,371
Loss from continuing operations attributable to
non-controlling interests                                1               1            5               2
Net income attributable to Magna International         589             470        1,537           1,373
Basic earnings per share
Continuing operations                                 1.15            1.15         3.58            3.26
Discontinued operations                               0.29           (0.04)        0.18           (0.08)
Attributable to Magna International                   1.44            1.11         3.76            3.18
Diluted earnings per share
Continuing operations                                 1.13            1.14         3.53            3.21
Discontinued operations                               0.29           (0.04)        0.18           (0.08)
Attributable to Magna International                   1.42            1.10         3.71            3.13
Cash dividends paid per common share                  0.22            0.19         0.66            0.57

We seek Safe Harbor.