06:57:23 EDT Tue 29 Sep 2020
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Magna International Inc
Symbol MG
Shares Issued 309,580,909
Close 2019-10-07 C$ 67.01
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FP/wire say GM strike crimping profits at Magna, rivals

2019-10-08 09:40 ET - In the News

Also In the News (C-LNR) Linamar Corp
Also In the News (C-MRE) Martinrea International Inc

The Financial Post reports in its Tuesday edition that Canadian suppliers to General Motors are likely to post lower-than-expected profits as the strike by the United Auto Workers enters its fourth week. A Bloomberg dispatch to the Post reports that Scotiabank analyst Mark Neville, who has street-high share targets on Magna International and Linamar, slashed his third quarter profit estimates by about 5.5 per cent on Magna and Martinrea International. He cut Linamar's forecast by 20 per cent in an Oct. 2 report after the company issued a profit warning last week in part because of the strike. Since the GM strike began Linamar has dropped 13 per cent, Martinrea lost 12 per cent and Magna fell 6 per cent. GM slipped as much as 1.8 per cent Monday, extending its decline since the strike started to 11 per cent. Negotiations between GM and UAW have "taken a turn for the worse" after the union made an offer on Saturday evening, a union official said. Talks between the UAW and GM resumed Monday morning. The strike has cut GM production by more than 8,000 vehicles a day. The cost to GM has exceeded $1-billion (U.S.), with GM losing about $82-million (U.S.) of potential profit in North America every day of the strike.

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