Magna Int'l (MGA) FY16 Revenue Outlook Inline with Views; Offers FY18 Expectations

2016 Outlook

2018 Expectations

Light Vehicle Production (Units)

North America

18.0 million

18.6 million

Europe

20.9 million

22.2 million

Production Sales

North America

$19.2 billion - $19.8 billion

$20.2 billion - $21.0 billion

Europe

$8.6 billion - $9.0 billion

$9.5 billion - $10.1 billion

Asia

$2.1 billion - $2.3 billion

$3.0 billion - $3.3 billion

Rest of World

$0.4 billion - $0.5 billion

$0.4 billion - $0.6 billion

Total Production Sales

$30.3 billion - $31.6 billion

$33.1 billion - $35.0 billion

Complete Vehicle Assembly Sales

$1.7 billion - $2.0 billion

$5.3 billion - $5.8 billion

Total Sales

$34.6 billion - $36.3 billion

Adjusted EBIT Margin(1)

High 7% range

Interest Expense

Approximately $80 million

Tax Rate(2)

25% - 26%

Capital Spending

$1.8 billion - $2.0 billion

(1) We believe Adjusted EBIT is the most appropriate measure of operational profitability or loss for our reporting segments. Adjusted EBIT represents income from operations before income taxes; interest expense, net; and other expense (income), net.(2) Excluding other expense (income), net