Magna, a leading global automotive supplier, has provided an update on its financial outlooks for 2023 and 2025, taking into account the recent acquisition of Veoneer Active Safety. The company now expects sales for this year to range between $41.9 billion and $43.5 billion, surpassing its previous estimate of $40.2 billion to $41.8 billion. Looking ahead to 2025, Magna anticipates sales to reach between $46.7 billion and $49.2 billion, up from the previously projected range of $44.7 billion to $47.2 billion.
It is important to note that the revision in financial outlooks exclusively reflects the inclusion of Veoneer Active Safety’s business, while all other assumptions remain unaffected.
This acquisition is expected to significantly boost Magna’s active safety business, with projected sales reaching approximately $4.25 billion by 2027, a substantial increase from around $600 million in 2022.
Magna also forecasts a strong growth trajectory for its electric powertrain sales, projecting an average annual increase of 35 percent. The company aims to achieve sales of approximately $4 billion by 2027, compared to around $800 million in 2022. It is worth noting that the estimated figure for 2027 is slightly lower than the $4.5 billion previously anticipated in 2022 due to foreign exchange factors.
In response to the growing demand for affordable and environmentally-friendly vehicles, Magna expects its unit specializing in electric powertrains and EV components to double its sales this year. The company is committed to supporting automakers in their efforts to introduce more sustainable models.
Magna is also prioritizing automation and smart manufacturing practices to mitigate the effects of inflationary pressures and reduce costs.
Furthermore, the joint venture between Magna and LG Electronics, focused on the supply of EV components, is expected to turn profitable this year. The companies plan to establish a fourth factory in Hungary by 2025.
Magna’s exceptional performance positions it as the fourth-largest global supplier, based on Automotive News’ list of the top 100 suppliers. In 2022, the company achieved worldwide parts sales of $37.8 billion.
Reuters contributed to this report.
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