Magna Acquires German Seat Maker - Analyst Blog
January 06 2012 - 11:27AM
Zacks
Magna International Inc. (MGA) announced that
its seating unit has acquired the assets and business of
Vogelsitze GmbH in Karlsruhe-Stupferich, Germany. Vogelsitze is a manufacturer
of seats for the bus and light train industries. In 2011,
Vogelsitze’s sales are expected to be €19 million ($24.5
million).
The acquisition will strengthen Magna’s position in the German
market and enhance its product portfolio. It will also help the
company win Vogelsitze’s existing customers, which include MAN,
Daimler’s (DDAIF) Mercedes-Benz,
Volvo (VOLVY), Bombardier, VDL and GAZ.
Last month, Magna announced that its body and chassis systems
operating unit, Cosma International, has closed a transaction with
Germany-based ThyssenKrupp Automotive Systems GmbH to acquire the
latter’s Brazilian unit, ThyssenKrupp Automotive Systems Industrial
do Brasil
Ltd (TKASB).
TKASB
manufactures and assembles chassis structural components and
modules for Brazilian original equipment manufacturers (OEMs). With
the acquisition, Magna will become the leading supplier of
metal-forming and chassis system to OEMs in South America. It will
also add to the company’s existing nine manufacturing facilities,
two R&D facilities and approximately 3,650 employees in the
region.
Magna has been expanding its global footprints, especially in
the emerging markets. Few months back, the company’s exterior and
interior operating unit has expanded in China by forming a joint
venture, MCC
Wuhu
Exteriors, with Changshu Automotive Trim Co. and Chery Tech. At the same time, it
purchased a 300,000-square-foot injection molding and painting
facility in Wuhu, located in the Anhui province of southeastern China.
In November last year, the company also announced that it has
entered into an agreement to acquire four die casting operations of
BDW
Technologies in Europe. Two of the operations are located in
Germany, one in Hungary and the remaining one in Poland.
The acquisition will be closed by Cosma in the first quarter of 2012. It is
expected to strengthen Cosma’s product portfolio and will enable
the company to deliver lightweight solutions for complex structural
and chassis components in steel, aluminum or aluminum-steel hybrid
to customers across the world.
Magna, a Zacks #3 Rank (Hold) stock, is a leading manufacturer
and supplier of automotive components based in Aurora, Canada. The
company designs, develops and manufactures automotive systems,
assemblies, modules and components, besides engineering and
assembling complete vehicles, primarily for sale to OEMs of cars
and light trucks.
The company earned $226 million or 94 cents per share in the
third quarter of the year compared with $256 million or $1.10 per
share in the same quarter a year-ago. Revenues increased 21% to
$6.97 billion driven by higher sales across all its operations.
Gross profit improved 2% to $769 million, despite a 24% rise in
cost of goods sold to $6.20 billion.
Magna expects total sales to range between $28.1 billion and
$28.9 billion for full year 2011. Based on operating regions, the
company anticipates sales to range between $13.6 billion and $13.9
billion in North America, $8.5 billion and $8.7 billion in Europe
and $23.4 billion and $24.0 billion in Rest of the World for the
year.
DAIMLER AG (DDAIF): Free Stock Analysis Report
MAGNA INTL CL A (MGA): Free Stock Analysis Report
VOLVO AB ADR B (VOLVY): Free Stock Analysis Report
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