By Adriano Marchese


Canadian parts manufacturer Magna International Inc. warned Tuesday that it expects its profit margins to be lower than previously forecast for 2022 due to more costs and provisions in the year.

Magna said that it now expects adjusted earnings before interest and taxes margin to come in at 4.3% for the year, below its target range of between 4.8% and 5%.

It said that the reduced adjusted EBIT margin is largely due to operational inefficiencies, higher costs of labor, underperformance at some of its facilities, higher net warranty costs, and provisions against a number of its accounts, among others.

Magna also said that these factors will negatively affect its adjusted net income, but didn't say by how much.

Meanwhile, the company expects to report sales of $37.8 billion in the year, within its range of expectations of between $37.4 billion and $38.4 billion.

Magna expects to report its fourth quarter and full 2022 results on Feb. 10.


Write to Adriano Marchese at adriano.marchese@wsj.com


(END) Dow Jones Newswires

01-24-23 0640ET