Magna raises sales forecast, beats quarterly view on cost cuts

(Reuters) -Canadian auto parts supplier Magna International raised annual sales forecast and topped second-quarter estimates on Friday, benefiting from its cost-cutting measures.

The company had said in May it would take steps such as restructuring and reduced capital and engineering spending to cushion the hit from sweeping tariffs.

U.S. President Donald Trump's levies have pressured auto companies across the supply chain, forcing suppliers to absorb more expenses or renegotiate with automakers.

Peers Aptiv and BorgWarner also raised their annual forecasts on Thursday, banking on stronger auto parts demand.

Magna expects 2025 sales to be between $40.4 billion and $42.0 billion, compared with its prior forecast of $40.0 billion and $41.6 billion.

On an adjusted basis, it earned $1.44 per share for the quarter through June, above analysts' estimate of $1.14 per share, according to data compiled by LSEG.

Total quarterly sales fell about 3% to $10.63 billion, while the estimate was $10.23 billion.

(Reporting by Nathan Gomes in Bengaluru; Editing by Shilpi Majumdar)

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