Magna International Inc. (MGA) recently announced that it has entered into an agreement to acquire four die casting operations of BDW Technologies in Europe. Two of the to-be acquired operations are located in Germany, one in Hungary and the remaining one in Poland.
BDW Technologies, based in Germany, is a manufacturer of vacuum high-pressure aluminum die-casting structural and nonstructural parts for the automotive industry. The company’s major customers include Volkswagen, Audi, Porsche, Mercedes-Benz, Ferrari and ZF.
Cosma International, a wholly-owned operating unit of Magna, will be responsible for the closing of this acquisition by the first quarter of 2012. However, the company did not provide the financial details of the transaction. The technologies from BDW will be helpful in supporting the low-pressure casting capabilities recently acquired by Cosma from Grenville Castings in Ontario, Canada.
More specifically, the acquisition is expected to strengthen Cosma’s product portfolio and will enable the company to deliver lightweight solutions for complex body-in-white structural and chassis components in steel, aluminum or aluminum-steel hybrid to customers across the globe.
In the most recent quarter, Magna earned $226 million or 94 cents per share compared with $256 million or $1.10 per share a year ago. Revenues rose 21% year over year to $6.97 billion driven by higher sales across all its operations. Gross profit improved 2% to $769 million, despite a 24% rise in cost of goods sold to $6.20 billion.
Management expects total sales to range between $28.1 billion and $28.9 billion, production sales to range from $23.4 billion to $24.0 billion and complete Vehicle Assembly sales to be in the $2.6 billion and $2.8 billion range for 2011.
Magna also provided full-year sales guidance for each of its operating regions: in North America sales are expected in the range of $13.6 billion to $13.9 billion, for Europe the range is $8.5 billion to $8.7 billion and in the ROW, the range is $23.4 billion to $24.0 billion. Capital expenditure for the full year is estimated to be between $1.0 billion and $1.1 billion.
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