Introduction:
Magna International Inc. is a Canadian global automotive supplier headquartered in Aurora, Ontario. In 2014, Magna became the largest automobile part manufacturer in North America by sales of original equipment parts, and one of Canada’s largest companies. Its operating groups include Magna Steyr, Magna Powertrain, Magna Exteriors, Magna Seating, Magna Closures, Magna Mirrors, Magna Electronics and Cosma International.Magna Inc. makes everything from seats to powertrains and manga only auto supplier to build complete vehicles. Magna forefront of a new technological revolution in the automotive industry, and leading the way in all areas of future mobility, with a keen focus on electrification and autonomy. Products can be found on most vehicles today and come from 340 manufacturing operations and 89 product-development, engineering and sales centres in 27 countries.
The company was founded in 1957 by Frank Stronach as Multimatic Investments Ltd. This company merged with Magna Electronics in 1969, and the combined company became Magna International in 1973.Magna acquired 80% of New Venture Gear, once a joint venture between General Motors and Chrysler, in September 2004, and combined it into Magna Powertrain. It assumed full ownership in 2007.Magna purchased CTS Fahrzeug-Dachsysteme, a supplier of convertible roofs, from Porsche in November 2005.
The Sunday Telegraph in London reported January 2007 that Magna International was on a short list of bidders to purchase Aston Martin. Their bid was unsuccessful; the company instead went to a British consortium led by Dave Richards of Prodrivefor £479 million. According to a NPR broadcast on March 23, 2007, Magna showed interest in acquiring the Chrysler division of DaimlerChrysler. However, on 14 May 2007, it was announced that Cerberus Capital Management had won the acquisition bid for $7.4 billion. In April 2008, Magna’s wholly owned subsidiary, Cosma International, announced that they were buying the Ogihara America Corp. stamping plant in Birmingham, Alabama, that makes parts for Mercedes-Benz and other automakers.
During the second quarter of 2015, the Magna battery pack business, Magna Steyr, was sold to Samsung SDI approximately $120 million. In July 2015, Magna bought the German company Getrag, specialized in transmission systems with about 13,500 employees, for 1.9 billion dollars.In August 2015, Grupo Antolin completed purchase of Magna interiors unit. The sale to Grupo Antolin included 36 plants and 12,000 employees in Europe, North America and Asia, about 10 percent of the Magna’s global workforce at the time. The operations generated sales of $2.4 billion in 2014.
Share:
Share price: 65.36 CAD as on 11 September 2018
Market Capitalization, $M23,081 M
Shares Outstanding, M337 M
earnings Per Share (TTM)6.55
Revenue Growth YoY7.11%
3-Year Total Return13.12%
371856066040This chart shows that 1 year statement of share price fluxion in a year December 2017 to November 2018.
There are lots of up and down happen in one year
Highest price goes to 69.30 in month of May 2018 and it touch its lowest price at 48.20 in month October 2018
00This chart shows that 1 year statement of share price fluxion in a year December 2017 to November 2018.
There are lots of up and down happen in one year
Highest price goes to 69.30 in month of May 2018 and it touch its lowest price at 48.20 in month October 2018
2018 2017 Change
Earnings per Common Share
Basic $ 1.84 $ 1.51 + 22%
Diluted $ 1.83 $ 1.51 + 21%
Weighted average number of Common Shares outstanding (millions)
Basic 357.7 381.4 – 6%
Diluted 359.9 383.4 – 6% Adjusted
diluted earnings per share $ 1.84 $ 1.53 + 20%
4038602279653299460170815 Diluted earnings per share Adjusted diluted earnings per share
$2.00 +21% $1.835385435213360491871021336000491871022288521659852800351661160280035001661160280035 $2.00 +20% $1.84
44996101885950012134852362210038614353219450043281603219453861435321945 $1.51 $1.53
613410400050011182354000561341040005
$0.80 40386021526503298825158115 $0.80
Diluted earnings per share increased $0.32 to $1.83 for the first quarter of 2018 compared to $1.51 for the first quarter of 2017 as a result of the increase in net income attributable to Magna International Inc. as discussed above and a decrease in the weighted average number of diluted shares outstanding during the first quarter of 2018. The decrease in the weighted average number of diluted shares outstanding was primarily due to the purchase and cancellation of Common Shares, during or subsequent to the first quarter of 2017, pursuant to our normal course issuer bids.
Other Expense, after tax, negatively impacted diluted earnings per share by $0.01 for the first quarter of 2018 and negatively impacted diluted earnings per share by $0.02 for the first quarter of 2017, as discussed in the “Other Expense” section. Adjusted diluted earnings per share, as reconciled in the “Non-GAAP Performance Measures” section, increased $0.31 to $1.84 for the first quarter of 2018 compared to $1.53 for the first quarter of 2017
Reach:
Magna has approximately 168,000 employees in 321 manufacturing operations and 102 product development, engineering and sales centres in 29 countries. Magna operates under a corporate constitution. Which calls for distribution of profits to employees and shareholders. The terms of this contract are “fair enterprise” according to Frank Stronach, company founder. Magna manufactures auto parts that are primarily supplied to General Motors, Ford Motor Company, and Chrysler LLC. In addition to the Big 3 U.S. automakers, Magna’s major customers include Tesla motors, BMW, and Volkswagen.
Magna International Inc. has put a hold on construction of a new corporate headquarters and research-and-development centre in King Township, about 60 kilometres north of Toronto. And now magna internationally expand in India, china, and other country of Asia.
Prospects:
International marketing concept :
International marketing is one of the most important aspects of globalization in terms of satisfaction of customers. The entire world has become a single market, firms cannot depend upon a single market anymore, and they have to offer their product to more than one market. International marketing include environmental scanning
Political, Economic,
Cultural, Technological,
Environments. Magna international has strong marketing plan for establish business in other country. Here we more discuss about international market concept.
Economic:
Economic factor is very effect on marketing strategy. Population of that country is very important this figures provide a basic indication of the attractiveness of the market in terms of size and future growth and price, age distribution and population growth. They allow marketers to identify the segments and the areas of that country they should target market. High population make big market and profit. So that’s why many company’s target big population country for more profit. Also, income levels need to be taken into account as they provide an indication of the purchasing power of the market and allow companies to adapt their marketing concepts. A packaged goods company, for example, brought out a more economic version of its product in countries that have lower income levels by using cheaper raw materials. And also that country labour cost is effect on production cost. For magna international is automobile parts company that have big market in every country because car is every ware.
In India for example India is second largest country by population so more population more cars and big market for magna make profit and success. Economic factor allows to what they produce how produce and for whom produce.
Political:
A set of political and government activities in a foreign market that can either facilitate business ability to conduct business activities in the foreign market Politics is one of the main environmental factors and is in general out of companies’ control. When a company launches a product, a campaign or operations in a foreign market, it can be faced with problems if the launch runs into issues that are political in origin. Every country has different rules and regulation .for example United Arab Emirates has policy that if and foreign company want to business in Country that Company have to take licence from big firm of UAE.
Cultural :
Culture refers to the influence of religious, family, educational, and social systems on people, how they live their lives, and the choices they make. Marketing always exists in an environment shaped by culture. Organizations that intend to market products in different countries must be sensitive to the cultural factors at work in their target markets. Even cultural differences between different countries–or between different regions in the same country–seem small, marketers who ignore them risk failure in implementing their programs. For magna international India has very big culture and buying power .for the automobile industries has big market .in Indian culture mostly people use vehicle more than 5 years. So more vehicle more parts needed so magna international has big market in India.
Technological :
Technological advancement is an important environmental factor impacting strategy formulation. It has accelerated in transportation, communication, manufacturing and computer systems, which may be considered major part of marketing strategy. Different levels of technological development and information technology between markets can affect the degree of export marketing strategy adaptation. For example, the availability, reliability and cost of communication media such as telephones, internet systems, technological networks, and computer software and hardware in the export country, which are likely to differ from the home country to a varying degree, may necessitate an adaptation in marketing strategy. In India there is lots of technology for production and also for promotion for example most using of television, internet etc… companies use the internet as a direct marketing tool to send e-mail to the target market
