Magna announces first quarter results in by 3%

AURORA - Magna International Inc. reported financial results for the first quarter ended March 31, 2008.

We posted sales of $6.6 billion for the first quarter ended March 31, 2008, an increase of 3% over the first quarter of 2007. This higher sales level was achieved as a result of increases in European and Rest of World production sales, offset in part by reductions in North American production sales, complete vehicle assembly sales, and tooling, engineering and other sales.

During the first quarter of 2008, North American and European average dollar content per vehicle increased 5% and 21%, respectively, over the comparable period in 2007. Also, during the first quarter of 2008, North American vehicle production declined 9% and European vehicle production declined 1%, each compared to the first quarter of 2007.

Complete vehicle assembly sales decreased 2% to $1.09 billion for the first quarter of 2008 compared to $1.10 billion for the first quarter of 2007 and complete vehicle assembly volumes declined 28% to 43,546 units.

During the first quarter of 2008, operating income was $286 million, net income was $207 million and diluted earnings per share were $1.78. Operating income decreased $19 million, net income decreased $11 million, and diluted earnings per share decreased $0.18, each compared to the first quarter of 2007.

During the three months ended March 31, 2008, we generated cash from operations before changes in non-cash operating assets and liabilities of $442 million, and invested $218 million in non-cash operating assets and liabilities. Total investment activities for the first quarter of 2008 were $168 million, including $128 million in fixed asset additions, a $32 million increase in investments and other assets, and $8 million to purchase subsidiaries.

Pursuant to the terms of our normal course issuer bid program, during the first quarter of 2008, we purchased for cancellation 1.6 million Class A Subordinate Voting Shares for cash consideration of $111 million.

A more detailed discussion of our consolidated financial results for the first quarter ended March 31, 2008 is contained in the Management's Discussion and Analysis of Results of Operations and Financial Position, and the unaudited interim consolidated financial statements and notes thereto, which are attached to this Press Release.

DIVIDENDS

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Yesterday, our Board of Directors declared a quarterly dividend with respect to our outstanding Class A Subordinate Voting Shares and Class B Shares for the quarter ended March 31, 2008. The dividend of U.S. $0.36 per share is payable on June 16, 2008 to shareholders of record on May 30, 2008.

2008 OUTLOOK
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For the full year 2008, we expect consolidated sales to be between $25.5 billion and $26.8 billion, based on full year 2008 light vehicle production volumes of approximately 14.2 million units in North America and approximately 15.6 million units in Europe. Full year 2008 average dollar content per vehicle is expected to be between $845 and $875 in North America and between $485 and $510 in Europe. We expect full year 2008 complete vehicle assembly sales to be between $3.9 billion and $4.2 billion.

In addition, we expect that full year 2008 spending for fixed assets will be in the range of $900 million to $950 million.

This 2008 outlook assumes no significant acquisitions or divestitures, and no significant labour disruptions in our principal markets. In addition, we have assumed that foreign exchange rates for the most common currencies in which we conduct business relative to our U.S. dollar reporting currency will approximate current rates.

We are the most diversified global automotive supplier. We design, develop and manufacture technologically advanced automotive systems, assemblies, modules and components, and engineer and assemble complete vehicles, primarily for sale to original equipment manufacturers ("OEMs") of cars and light trucks. Our capabilities include the design, engineering, testing and manufacture of automotive interior systems; seating systems; closure systems; metal body and chassis systems; vision systems; electronic systems; exterior systems; powertrain systems; roof systems; as well as complete vehicle engineering and assembly.

We have approximately 83,000 employees in 238 manufacturing operations and 60 product development and engineering centres in 23 countries.