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Bank of America said the Q4 results previously announced by Magna International (NYSE: MGA) was not surprising, although the problems presented were more pronounced than expected and may be a sign of a difficult financial climate. car supply unit.
Magna International said in its release that a number of factors impacted its EBIT margin, including a decrease in revenue from lower sales, engineering costs, higher warranty costs, and poor performance in certain areas. Constant volatility in production schedules, high labor costs, and inefficiencies were also highlighted as negative factors for the quarter.
BofA maintained a Neutral rating on Magna following the update.
Shares of Magna International (MGA) fell 7.44% in sales at noon on Tuesday. Other names for back-to-back cars were Cooper-Standard (CPS) -4.58%Adient (ADNT) -4.39%Aeva Technologies (AEVA) -4.36%Lear Corporation (LEA) -3.05%Visteon (VC) -2.80%and Autoliv (ALV) -1.98%.
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