Magna Announces First Quarter Results

By Magna International Inc., PRNE
Tuesday, May 3, 2011

AURORA, Ontario, May 4, 2011 - Magna International Inc. (TSX: MG; NYSE: MGA) today reported financial
results for the first quarter ended March 31, 2011.

On January 1, 2011, we adopted United States generally accepted
accounting principles ("GAAP") as our primary basis of accounting. All
financial information in this press release has been revised to reflect our
results as if they had been historically reported in accordance with U.S.

                                                         THREE MONTHS ENDED
                                                         March 31,  March 31,
                                                           2011       2010
                                                        ---------- ----------

    Sales                                                $  7,189   $  5,350

    Operating income                                     $    400   $    278

    Net income                                           $    322   $    224

    Diluted earnings per share                           $   1.30   $   0.99

    All results are reported in millions of U.S. dollars, except per share
    figures, which are in U.S. dollars.


We posted sales of $7.2 billion for the first quarter ended March 31,
, an increase of 34% from the first quarter of 2010. We achieved this
sales increase in a period when vehicle production increased 17% in North
and 10% in Western Europe, both relative to the first quarter of
2010. Our North American, European and Rest of World production sales,
complete vehicle assembly sales and tooling and other sales all increased in
the first quarter of 2011 relative to the comparable quarter in 2010.

Complete vehicle assembly sales increased 51% to $674 million for the
first quarter of 2011 compared to $446 million for the first quarter of 2010,
while complete vehicle assembly volumes increased 85% to approximately 33,000

During the first quarter of 2011, operating income was $400 million, net
income was $322 million and diluted earnings per share were $1.30, increases
of $122 million, $98 million and $0.31, respectively, each compared to the
first quarter of 2010.

During the first quarter ended March 31, 2011, we generated cash from
operations of $496 million before changes in non-cash operating assets and
liabilities, and invested $608 million in non-cash operating assets and
liabilities. Total investment activities for the first quarter of 2011 were
$199 million, including $144 million in fixed asset additions and $55 million
in investments and other assets.

A more detailed discussion of our consolidated financial results for the
first quarter ended March 31, 2011 is contained in the Management's
Discussion and Analysis of Results of Operations and Financial Position and
the unaudited interim consolidated financial statements and notes thereto,
which are attached to this Press Release.



Yesterday, our Board of Directors declared a quarterly dividend of $0.25
with respect to our outstanding Common Shares for the quarter ended March 31,
. This dividend is payable on June 15, 2011 to shareholders of record on
May 31, 2011.



As a result of the search process undertaken by our Nominating Committee,
two new independent directors - Dr. Kurt J. Lauk and Mr. William Young -
joined our Board at this morning's annual meeting of shareholders. Dr. Lauk
possesses extensive automotive experience, primarily through senior positions
held at Daimler Chrysler and Audi. Mr. Young has significant operational and
board experience, as well as extensive experience in mergers and



The following is our current 2011 outlook, as well as our previous 2011
outlook dated February 23, 2011, adjusted to reflect our adoption of U.S.

                                  CURRENT OUTLOOK       PREVIOUS OUTLOOK(x)
                              ----------------------- -----------------------
    Vehicle Production Units
      North America                13.2 million            12.9 million
      Western Europe               13.6 million            13.3 million

    Production Sales
      North America            $13.0 - $13.5 billion   $12.4 - $12.9 billion
      Europe                    $8.3 - $8.6 billion     $7.5 - $7.8 billion
      Rest of World             $1.2 - $1.4 billion     $1.0 - $1.2 billion
                              ----------------------- -----------------------
      Total Production Sales   $22.4 - $23.4 billion   $20.9 - $21.9 billion

    Assembly Sales              $2.6 - $2.9 billion     $2.4 - $2.7 billion

    Total Sales                $27.1 - $28.5 billion   $24.8 - $26.3 billion

    Operating Margin(xx)        Low to mid 5% range     Low to mid 5% range

    Tax Rate(xx)                 Approximately 20%       Approximately 20%

    Capital Spending            $1.0 - $1.1 billion     $1.0 - $1.1 billion

    (x) Adjusted to reflect adoption of U.S. GAAP
    (xx) Excluding unusual items

In this 2011 outlook, in addition to 2011 light vehicle production, we
have assumed no material acquisitions or divestitures. In addition, we have
assumed that foreign exchange rates for the most common currencies in which
we conduct business relative to our U.S. dollar reporting currency will
approximate current rates.



We are the most diversified global automotive supplier. We design,
develop and manufacture technologically advanced automotive systems,
assemblies, modules and components, and engineer and assemble complete
vehicles, primarily for sale to original equipment manufacturers ("OEMs") of
cars and light trucks. Our capabilities include the design, engineering,
testing and manufacture of automotive interior systems; seating systems;
closure systems; body and chassis systems; vision systems; electronic
systems; exterior systems; powertrain systems; roof systems; hybrid and
electric vehicles/systems; as well as complete vehicle engineering and

We have approximately 102,000 employees in 263 manufacturing operations
and 84 product development, engineering and sales centres in 26 countries.

    We will hold a conference call for interested analysts and shareholders
    to discuss our first quarter results on Wednesday, May 4, 2011 at
    2:00 p.m. EDT. The conference call will be chaired by Donald J. Walker,
    Chief Executive Officer. The number to use for this call is
    1-800-705-8289. The number for overseas callers is 1-416-359-3127. Please
    call in at least 10 minutes prior to the call. We will also webcast the
    conference call at The slide presentation accompanying the
    conference call will be available on our website Wednesday afternoon
    prior to the call.

    For further information, please contact Louis Tonelli, Vice-President,
    Investor Relations at 905-726-7035.

    For teleconferencing questions, please contact Karin Kaminski at



The previous discussion contains statements that constitute
"forward-looking statements" within the meaning of applicable securities
legislation, including, but not limited to, statements relating to: Magna's
expected consolidated sales, based on expected light vehicle production in
North America and Europe; Magna's expected production sales in the North
, Europe and Rest of World segments; complete vehicle assembly sales;
consolidated operating margin; effective income tax rate; and fixed asset
expenditures. The forward-looking information in this MD&A is presented for
the purpose of providing information about management's current expectations
and plans and such information may not be appropriate for other purposes.
Forward-looking statements may include financial and other projections, as
well as statements regarding our future plans, objectives or economic
performance, or the assumptions underlying any of the foregoing, and other
statements that are not recitations of historical fact. We use words such as
"may", "would", "could", "should", "will", "likely", "expect", "anticipate",
"believe", "intend", "plan", "forecast", "outlook", "project", "estimate" and
similar expressions suggesting future outcomes or events to identify
forward-looking statements. Any such forward-looking statements are based on
information currently available to us, and are based on assumptions and
analyses made by us in light of our experience and our perception of
historical trends, current conditions and expected future developments, as
well as other factors we believe are appropriate in the circumstances.
However, whether actual results and developments will conform with our
expectations and predictions is subject to a number of risks, assumptions and
uncertainties, many of which are beyond our control, and the effects of which
can be difficult to predict, including, without limitation: the potential for
a slower than anticipated economic recovery or a deterioration of economic
conditions; production volume levels; the potential bankruptcy of a major
automotive customer; the inability of sub-suppliers to timely accommodate
demand for their parts; the impact of the insolvency or bankruptcy of a
critical supplier; the highly competitive nature of the automotive parts
supply business; a reduction in outsourcing by our customers or the loss of a
material production or assembly program; the termination or non-renewal by
our customers of any material production purchase order; a shift away from
technologies in which we are investing; restructuring, downsizing and/or
other significant non-recurring costs; impairment charges related to
goodwill, long-lived assets and deferred tax assets; our ability to diversify
our sales; shifts in market shares among vehicles or vehicle segments, or
shifts away from vehicles on which we have significant content; our ability
to shift our manufacturing footprint to take advantage of opportunities in
growing markets; risks of conducting business in foreign countries, including
China, India, Brazil, Russia and other growing markets; exposure to elevated
commodities prices; our ability to negotiate favourable borrowing terms or
secure sufficient borrowing limits; the impact of potential disruptions in
the capital and credit markets; uncertainty with respect to the financial
condition of a number of governments, particularly in Europe; fluctuations in
relative currency values; our ability to successfully identify, complete and
integrate acquisitions; pricing pressures, including our ability to offset
price concessions demanded by our customers; warranty and recall costs; our
ability to compete successfully in non-automotive businesses in which we
pursue opportunities; changes in our mix of earnings between jurisdictions
with lower tax rates and those with higher tax rates, as well as our ability
to fully benefit tax losses; other potential tax exposures; legal claims
against us; work stoppages and labour relations disputes; changes in credit
ratings assigned to us; changes in laws and governmental regulations; costs
associated with compliance with environmental laws and regulations; our
non-controlling interest in Magna E-Car Systems; our ability to recover our
initial or any potential subsequent investment(s) in Magna E-Car Systems;
risks related to the electric vehicle industry itself; and other factors set
out in our Annual Information Form filed with securities commissions in
Canada and our annual report on Form 40-F filed with the United States
Securities and Exchange Commission, and subsequent filings. In evaluating
forward-looking statements, we caution readers not to place undue reliance on
any forward-looking statements and readers should specifically consider the
various factors which could cause actual events or results to differ
materially from those indicated by such forward-looking statements. Unless
otherwise required by applicable securities laws, we do not intend, nor do we
undertake any obligation, to update or revise any forward-looking statements
to reflect subsequent information, events, results or circumstances or

    For further information about Magna, please see our website at Copies of financial data and other publicly filed
    documents are available through the internet on the Canadian Securities
    Administrators' System for Electronic Document Analysis and Retrieval
    (SEDAR) which can be accessed at and on the United States
    Securities and Exchange Commission's Electronic Data Gathering, Analysis
    and Retrieval System (EDGAR) which can be accessed at

For further information: please contact Louis Tonelli, Vice-President,
Investor Relations at +1-905-726-7035


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