Magna International Inc.

Magna announces record 1999 fourth quarter and fiscal year results

    Aurora, Ontario (ots) - Magna International Inc. (TSE: MG.A,
MG.B; NYSE: MGA) today reported record sales, profits and earnings
per share for the fourth quarter and fiscal year ended December 31
1999.

                                          YEARS ENDED                    THREE MONTHS ENDED
                            December 31,  January 31,  December 31, January 31,
                                            1999        1999                1999         1999
                                            ----        ----                ----         ----

    Sales                              $9,359    $7,419            $2,563      $2,210

    Net Income                      $  430    $  352(1)        $  125      $    77
        Excl. Other Income      $  430    $  342            $  125      $    77

    Fully diluted earnings  $ 4.75    $ 4.06            $ 1.34      $ 0.88
        per share
        Excl. Other Income      $ 4.75    $ 3.95            $ 1.34      $ 0.88

    (1) Includes a U.S dollars 10 million gain on the issue of shares
by Decoma.

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

    As previously announced, in order to more fully reflect the global
nature of its automotive business, the Company changed its fiscal
year end from July 31 to December 31, effective December 31, 1998 and
changed its reporting currency to United States dollars. Consistent
with Canadian securities legislation, comparative data for the three
months and year ended January 31, 1999 has been presented. Commencing
with the first quarter ending March 31, 2000, calendar quarter
comparative data will be presented.

    Sales for the fourth quarter and fiscal year ended December 31,
1999 were $2.6 billion, and $9.4 billion respectively, an increase of
approximately 16% and 26% over the comparable fiscal periods ended
January 31, 1999. The higher sales level in fiscal 1999 reflects a
14% and 23% increase in North American and European content per
vehicle, respectively, over the comparable fiscal year, a period in
which North American and European vehicle production increased
approximately 6.5% and 5.7% respectively. Tooling and other sales
increased by 30% to $1.0 billion in fiscal 1999.

    Net income for the fourth quarter and fiscal 1999 were $125
million and $430 million respectively, compared to $77 million and
$352 million respectively in the comparable fiscal periods.

    Fully diluted earnings per share set records for the Company at
$1.34 and $4.75 for the fourth quarter and fiscal 1999 respectively,
representing increases of 52% and 17% respectively over the
comparable fiscal periods.

    During fiscal 1999, cash generated from operations was $829
million. Total investment activities during the year were $1.1
billion, including $873 million in fixed assets and $260 million in
investments and other assets, principally for the acquisition of the
40% minority interest in Magna Automobiltechnik AG (``MATAG'') which
enhances Magna's position as the premier metal forming company in
both Europe and globally, and the acquisitions of Gulfstream Park and
Golden Gate Fields by Magna Entertainment Corp. (''MEC''), formerly
called MI Entertainment Corp., Magna's non-automotive group.

    Magna recently announced that regulatory approvals have been
obtained from the U.S. and Canadian Securities Commissions which
permit Magna to proceed with its previously announced plans to
transform MEC into a public company by distributing approximately 20%
of MEC's Class A Subordinate Voting Stock to Magna's shareholders.
The distribution will take place on March 10, 2000 by way of a
special stock dividend. The dividend record date will be February 25,
2000.

    Magna also recently announced that its Board of Directors had
declared its regular quarterly dividend with respect to its
outstanding Class A Subordinate Voting Shares and Class B Shares for
the fiscal quarter ended December 31, 1999. The dividend of $0.30 per
share, an increase from $0.25 per share is payable concurrently with
the special stock dividend on March 10, 2000 to shareholders of
record on February 25, 2000.

    Magna, one of the most diversified automotive suppliers in the
world, designs, develops and manufactures automotive systems,
assemblies and components, and engineers and assembles complete
vehicles, primarily for sale to original equipment manufacturers of
cars and light trucks in North America, Europe, Mexico, South America
and Asia. Magna's products include: exterior decorative systems;
interior products including complete seats, instrument and door panel
systems and sound insulation; stamped and welded metal parts and
assemblies; sunroofs; electro-mechanical devices and assemblies and
navigation systems; a variety of plastic parts, including body panels
and fascias through Decoma International Inc.; various engine,
powertrain and fueling and cooling components through Tesma
International Inc.; and a variety of drivetrain components and
complete vehicle engineering and assembly through the
Steyr-Daimler-Puch Group.

    Magna has over 58,000 employees in 174 manufacturing operations
and 31 product development and engineering centres in 18 countries.

    Magna will hold a conference call to discuss the fourth quarter
and year end results on Tuesday, February 22 at 10:30hrs (EST). The
number to use for this call is 00 1 877 330 4535. Please call in 10
minutes prior. The number for overseas callers is 00 1 416 641 6353.
The conference call will be chaired by Graham Orr, Executive
Vice-President, Corporate Development. For further information,
please contact Graham Orr at 00 1 905 726 7099.

    MAGNA INTERNATIONAL INC.
    CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS

    (Unaudited)
    (United States dollars in
      millions, except per share
      figures)
                                              Twelve months ended    Three months ended
                                                 December  January    December  January
                                                          31,         31,         31,         31,
                                                         1999        1999        1999        1999

    Sales
      Automotive                                 $9,260    $7,405    $2,535    $2,196
      Magna Entertainment Corp.                99          14          28          14
  
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                                                         9,359      7,419      2,563      2,210
  
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    Automotive costs and expenses
    Cost of goods sold                        7,622      6,128      2,068      1,846
    Depreciation and amortisation         354         267          93          85
    Selling, general and administrative    
                                                            607         497         166         152
    Interest expense (income), net         16          (6)         11          (2)
    Equity income                                  (17)        (15)         (4)         (2)
    Magna Entertainment Corp.
    costs and expenses                            95          10          31          10
  
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    Operating income - automotive         678         534         201         117
    Operating income (loss) -
    Magna Entertainment Corp.                  4            4          (3)         4
    Other income                                        -          10            -          -
  
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    Income before income taxes
    and minority interest                    682          548         198         121
    Income taxes                                  233          184          67          41
    Minority interest                            19            12            6          3
  
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    Net Income                                 $  430      $  352    $  125      $  77
  
====================================================================

    Financing charges on Preferred
    Securities and other paid-in
    capital                                      $  (31)    $  (27)  $  (10)    $  (6)
  
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    Net income available to Class A
    Subordinate Voting and Class B
    Shareholders                                  399          325         115          71
    Retained earnings, beginning of
    period                                         1,202          969      1,436      1,182
    Dividends on Class A Subordinate
      Voting and Class B Shares            (70)         (65)        (20)        (16)
    Cumulative adjustment for change
      in accounting policy (note iii))    -              8            -          -
  
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    Retained earnings, end of period  
                                                    $1,531      $1,237    $1,531      $1,237
  
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    Earnings per Class A Subordinate
      Voting or Class B Share:
        Basic                                        $ 5.08      $ 4.30  $ 1.46      $0.91
        Fully diluted                          $ 4.75      $ 4.06  $ 1.34      $0.88
  
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    Cash dividends paid per Class A
      Subordinate Voting or Class B
      Share                                         $ 1.11      $ 0.87  $ 0.25      $0.22
  
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    Average number of Class A
      Subordinate Voting and Class B
      Shares outstanding during the
      period (in millions):
        Basic                                          78.5         75.5      78.5        78.4
        Fully diluted                              91.8         89.3      92.5        91.3
  
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    MAGNA INTERNATIONAL INC.     CONSOLIDATED STATEMENTS OF CASH FLOWS    ---------------------------------------------------------------------     (Unaudited)     (United States dollars in millions)    ---------------------------------------------------------------------

                                              Twelve months ended    Three months ended
                                                  December January December  January
                                                         31,        31,         31,        31,
                                                        1999      1999        1999      1999
  
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    Cash provided from (used for):

    OPERATING ACTIVITIES
    Net income                                $  430  $  352  $  125        $ 77
    Items not involving current
      cash flows                                  399        291        130          80
  
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                                                         829        643        255         157
    Changes in non-cash working capital    
                                                         (79)        (9)        82         103
  
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                                                         750        634        337         260
  
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    INVESTMENT ACTIVITIES
    Fixed asset additions                 (873)    (785)    (227)      (272)
    Purchase of subsidiaries            (211)    (458)      (72)      (127)
    Increase in investments and other
                                                         (49)    (115)      (21)        (24)
    Proceeds from disposition of
      investments and other                 146         89         38            4
  
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                                                        (987) (1,269)    (282)      (419)
  
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    FINANCING ACTIVITIES
    Net issue of debt                         144         92         65         120
    Issues of subordinated debentures
      (note (iv))                                 104        435          -            -
    Issue of Preferred Securities
      (note (iv))                                 274          -          -            -
    Issue of Class A Subordinate
      Voting Shares                                 -        260          -            -
    Issues of shares by subsidiaries    1         28          1            -
    Repayments of debentures'
      interest obligation                    (30)      (20)        (8)          -
    Preferred Securities distribution (3)         -         (3)          -
    Dividends paid to minority interests  
                                                          (3)        (3)        (1)         (1)
    Dividends                                      (87)      (66)      (20)        (17)
  
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                                                         400        726         34         102
  
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    Effect of exchange rate changes
      on cash and cash equivalents      (15)        38         (8)         (5)
  
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    Net increase (decrease) in cash and
      cash equivalents during the period    
                                                         148        129         81         (62)
    Cash and cash equivalents, beginning
      of period                                    484        299        551         490
  
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    Cash and cash equivalents,
      end of period                         $  632  $  428  $  632      $ 428
  
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    MAGNA INTERNATIONAL INC.     CONSOLIDATED BALANCE SHEETS    ---------------------------------------------------------------------

    (Unaudited)     (United States dollars in millions)    ---------------------------------------------------------------------

                                                                      December 31, December 31,
                                                                          1999            1998
  
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                                                        ASSETS
  
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    Current assets:
        Cash and cash equivalents                            $  632          $ 484
        Accounts receivable                                        1,584          1,452
        Inventories                                                        672              681
        Prepaid expenses and other                                 46                54
  
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                                                                              2,934          2,671
  
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    Investments                                                            89              106
  
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    Fixed assets, net                                              3,543          2,873
  
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    Goodwill, net                                                        267              306
  
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    Future tax assets                                                 113                68
  
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    Other assets                                                         272              209
  
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                                                                            $7,218         $6,233
  
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                                LIABILITIES AND SHAREHOLDERS' EQUITY
  
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    Current liabilities:
        Bank indebtedness                                          $  339          $ 262
        Accounts payable and other accruals                1,862          1,803
        Long-term debt due within one year                      70                42
  
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                                                                                2,271          2,107
  
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    Long-term debt                                                        253              205
  
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    Debentures' interest obligation (note (iv))         208              181
  
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    Other long term liabilities                                    85                89
  
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    Future tax liabilities                                          253              123
  
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    Minority interest                                                  124              117
  
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    Shareholders' equity:
    Capital stock issued and outstanding -
        Class A Subordinate Voting Shares
         (issued: 77,438,465; December 31, 1998
         - 77,256,183)                                                  1,441          1,430
        Class B Shares
         (convertible into Class A Subordinate
         Voting Shares) (issued: 1,097,909;
         December 31, 1998 - 1,098,109)                            1                1
    Preferred Securities (note (iv))                          277                -
    Other paid-in capital (note (iv))                         689              599
    Retained earnings                                                1,531          1,202
    Currency translation adjustment                              85              179
  
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                                                                                4,024          3,411
  
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                                                                              $7,218         $6,233


    Notes:

    (i)        The Company changed its fiscal year end from July 31 to
December 31, effective December 31, 1998. Consistent with Canadian
securities legislation, comparative data for the three and twelve
months ended January 31, 1999 has been presented as the periods
coincide with the Company's previously reported quarter end prior to
the year end change.

    (ii)      Effective December 31, 1998, the Company changed its
currency to U.S. dollars. In accordance with accounting principles
generally accepted in Canada ("Canadian GAAP"), results up to
December 31, 1998 have been restated in U.S. dollars using the
December 31, 1998 exchange rate of Cdn$1.5305 per US$1.00. Results
subsequent to December 31, 1998 have translated using the current
rate method which uses the average exchange rate during the period to
translate revenues, expenses and cash flows and the balance sheet
date rate to translate assets and liabilities.

    (iii)    In the comparative period, the Company adopted the
liability method of tax allocation for accounting for income taxes.
The cumulative effect of adopting these recommendations was a
reduction in future tax liabilities and an increase in retained
earnings of $8 million. There was no material impact on net income
for any of the periods presented herein.

    (iv)      During the year ended December 31, 1999 the Company issued
Cdn$165 million of 8.65% series A preferred securities and US$170
million of 8.875% series B preferred securities (collectively, the
"Preferred Securities"). Under Canadian GAAP, the Preferred
Securities are included in shareholders' equity and financing charges
on the Preferred Securities are accrued over time and charged
directly to retained earnings.

                 Also during the year ended December 31, 1999 the Company
issued Euro 100 million of 7.08% subordinated debentures. Under
Canadian GAAP, the Euro subordinated debentures are recorded as
components of debt (under Debentures' interest obligation) and equity
(under Other paid-in capital). The interest cost associated with the
Euro subordinated debentures is presented in part as Interest expense
and in part as a charge directly to retained earnings.

    (v)        The revenues and expenses of the Company's recently
established non-automotive group, Magna Entertainment Corp.
("MEC"), have been separately presented in the consolidated
statement of income from January 1, 1999. Prior to January 1, 1999,
MEC revenues expenses were not significant.

ots Original Text Service: Magna Internet: http://www.newsaktuell.de

Contact: Graham Orr, Executive Vice-President, Corporate Development at +1 905 726-7099

Original-Content von: Magna International Inc., übermittelt durch news aktuell

Weitere Meldungen: Magna International Inc.

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