Mr. Louis Tonelli reports

MAGNA ANNOUNCES FIRST QUARTER RESULTS

Magna International Inc. has provided financial results for the first quarter ended March 31, 2017.

                         (in millions of U.S. dollars)  

                                                        Three months ended               
                                                   March 31, 2017         March 31, 2016

Sales                                                      $9,372                 $8,900
Income before income taxes                                   $806                   $675  
Net income attributable to Magna International Inc.          $586                   $492  
Adjusted EBIT (1)                                            $831                   $698  
Diluted earnings per share                                  $1.53                  $1.22 

(1) Adjusted EBIT is a non-GAAP (generally accepted accounting principles) financial 
    measure that has no standardized meaning under U.S. GAAP and as a result may not be 
    comparable with the calculation of similar measures by other companies. Adjusted 
    EBIT represents net income before income taxes; interest expense, net; and other 
    expense (income), net. For a reconciliation of this non-GAAP financial measure, see 
    the company's management's discussion and analysis of results of operations and 
    financial position for the three months ended March 31, 2017, available in the 
    investor relations section of the company's website.


  

Three months ended March 31, 2017

The company posted sales of $9.37-billion for the first quarter ended March 31, 2017, an increase of 5 per cent over the first quarter of 2016. The strong year-over-year growth was achieved despite North American light vehicle production declining by 1 per cent and European light vehicle production increasing only 2 per cent compared with the first quarter of 2016. The company's complete vehicle assembly sales decreased 31 per cent in the first quarter of 2017 largely reflecting the end of production of the Mini Countryman and Paceman in 2016, partially offset by the start of production of the BMW 5-Series at the company's assembly facility in Graz, Austria.

During the first quarter of 2017, income from operations before income taxes was $806-million, up 19 per cent compared with the first quarter of 2016. Net income attributable to Magna International was $586-million, 19 per cent higher than the first quarter of 2016. Diluted earnings per share increased 25 per cent to $1.53 in the first quarter of 2017, which includes the favourable impact of a reduced share count.

During the first quarter of 2017, adjusted earnings before interest taxes (EBIT) increased 19 per cent to $831-million, compared with $698-million for the first quarter of 2016. The company's North America, Europe, Asia and rest of world segments all posted higher adjusted EBIT and adjusted EBIT percentage of sales, compared with the first quarter of 2016.

During the first quarter ended March 31, 2017, cash provided from operating activities totalled $443-million, up 46 per cent from the first quarter of 2016. This includes cash generated from operations of $870-million before changes in operating assets and liabilities, and $427-million invested in operating assets and liabilities. Total investment activities for the first quarter of 2017 were $392-million, including $309-million in fixed asset additions and $83-million in investments, other assets and intangible assets.

"We delivered another very strong quarter, with continued production sales growth above vehicle production, all segments posting higher margins and all-time record earnings per share. Over all, the first quarter was a great start to the year for the company and our shareholders," said Don Walker, Magna's chief executive officer.

Return of capital to shareholders

During the three months ended March 31, 2017, the company repurchased 2.3 million shares for $100-million. In addition, the company paid dividends of $105-million in the first quarter of 2017.

Today, the company's board of directors declared a quarterly dividend of 27.5 cents with respect to its outstanding common shares for the quarter ended March 31, 2017. This dividend is payable on June 9, 2017, to shareholders of record on May 26, 2017.

    UPDATED 2017 OUTLOOK
   
Light vehicle production (units)                          
North America                       17.5 million
Europe                              21.9 million

Production sales
North America                       $19.0-billion to $19.6-billion
Europe                              $9.2-billion to $9.6-billion
Asia                                $2.2-billion to $2.4-billion
Rest of world                       $400-million to $500-million
Total production sales              $30.8-billion to $32.1-billion
Complete vehicle assembly sales     $2.7-billion to $3.0-billion
Total sales                         $36.6-billion to $38.3-billion
Adjusted EBIT margin (2)            8.0% to 8.2%
Interest expense, net               Approximately $85-million
Income tax rate (3)                 25% to 26%
Capital spending                    Approximately $2.0-billion

(2) Adjusted EBIT margin is the ratio of adjusted EBIT to total 
    sales.

(3) The income tax rate has been calculated using adjusted EBIT 
    and is based on current tax legislation.


  

In this 2017 outlook, the company has assumed:

• 2017 light vehicle production volumes (as set out above);
• No material unannounced acquisitions or divestitures;
• Foreign exchange rates for the most common currencies in which the company conducts business relative to its U.S. dollar reporting currency will approximate current rates.

This press release together with the company's management's discussion and analysis of results of operations and financial position and its interim financial statements are available in the investor relations section of the company's website and filed electronically through SEDAR as well as on EDGAR.

The company will hold a conference call for interested analysts and shareholders to discuss its first quarter ended March 31, 2017, results on Thursday, May 11, 2017, at 2:30 p.m. EST. The conference call will be chaired by Don Walker, chief executive officer. The number to use for this call from North America is 1-800-905-9496. International callers should use 1-416-641-6700. Please call in at least 10 minutes prior to the call start time. The company will also webcast the conference call at its website. The slide presentation accompanying the conference call will be available on the company's website Thursday prior to the call.

The company's business (4)

The company is a leading global automotive supplier with 321 manufacturing operations and 102 product development, engineering and sales centres in 29 countries. It has over 159,000 employees focused on delivering superior value to its customers through innovative products and processes and world-class manufacturing. The company has complete vehicle engineering and contract manufacturing expertise, as well as product capabilities which include body, chassis, exterior, seating, powertrain, active driver assistance, vision, closure and roof systems, and has electronic and software capabilities across many of these areas.

(4) Manufacturing operations, product development, engineering and sales centres, and employee figures include certain equity-accounted operations.

We seek Safe Harbor.