Magna spinoff Intier Automotive post 60% profit increase, warns of slowdown

Original equipment parts supplier, Intier Automotive Inc., newly spun off by Magna International as a publicly traded company, reported a 60% rise in second-quarter profit Tuesday.
Despite the auto industry slowdown, the auto parts company said net income rose to $18.4 million US or 40 cents a share, compared with $11.5 million or 20 cents per share a year earlier.
Sales rose 15% to $851.1 million US from $737 million.
“North American average content per vehicle increased 36% to $125, compared to $92 for the second quarter of 2000.” Intier said in a release.
“This increase was achieved at a time when North American vehicle production volumes declined by approximately 500,000 units to 4.3 million units for the three months ended June 30…”
Western European production sales remained relatively unchanged at $233.2 million US.
The company announced that on Aug. 9 it completed its public offering and sale in both Canada and the United States of subordinate voting shares for net proceeds of about $60 million US.
“Management is very excited with the creation of Intier as a separate public company and look forward to working with our many customers as we develop and launch new products for the market,” said chief executive Donald Walker.
On the Toronto stock market Tuesday, Intier shares were up 52 cents at $22.12.
The company said it expects to feel the effects of the auto industry slowdown and general economic uncertainty. It also forecast sales for the full year to range from $3.1 billion to $3.3 billion US, compared with fiscal 2000 sales of $3 billion.
Intier directly supplies most of the major automobile manufacturers in the world and employs about 20,000 people at 62 plants, 17 product development, engineering and testing centers and 13 sales offices in North America, Europe, Brazil and China.