Magna announces fourth quarter increase of 8% and 2007 results

AURORA - Magna International Inc. reported financial results for the fourth quarter and year ended December 31, 2007.

YEAR ENDED DECEMBER 31, 2007

Magna posted sales of $26.1 billion for 2007, an increase of 8% over 2006. This higher sales level was achieved as a result of increases in our North American, European and Rest of World production sales offset in part by reductions in complete vehicle assembly sales, and tooling, engineering and other sales.

During 2007, North American and European average dollar content per vehicle increased 11% and 20% respectively, over 2006. During 2007, North American vehicle production declined 2% while European vehicle production increased 3%, each compared to 2006.

Complete vehicle assembly sales decreased 8% to $4.0 billion for 2007 compared to $4.4 billion for 2006 and complete vehicle assembly volumes decreased 19% to approximately 200,000 units.

During 2007, operating income was $1.152 billion, net income was $663 million and diluted earnings per share Magnare $5.86. Excluding the unusual items recorded during 2007 and 2006 (see "Unusual Items" below), operating income increased $257 million, net income increased $202 million, and diluted earnings per share increased $1.65.

During 2007, Magna generated cash from operations before changes in non-cash operating assets and liabilities of $1.7 billion, and invested $94 million in non-cash operating assets and liabilities. Total investment activities for 2007 Magnare $977 million, including $741 million in fixed asset additions, a $190 million increase in investments and other assets, and $46 million to purchase subsidiaries.

THREE MONTHS ENDED DECEMBER 31, 2007

Magna posted sales of $6.8 billion for the fourth quarter ended December 31, 2007, an increase of 7% over the fourth quarter of 2006. This higher sales level was achieved as a result of increases in North American, European and Rest of World production sales, offset in part by reductions in complete vehicle assembly sales, and tooling, engineering and other sales.

During the fourth quarter of 2007, North American and European average dollar content per vehicle increased 13% and 26% respectively, over the comparable quarter in 2006. During the fourth quarter of 2007, North American vehicle production increased by 1% and European vehicle production declined 1%, each compared to the fourth quarter of 2006.

Complete vehicle assembly sales decreased 21% to $981 million for the fourth quarter of 2007 compared to $1.25 billion for the fourth quarter of 2006 and complete vehicle assembly volumes decreased 36% to approximately 42,000 units.

During the fourth quarter of 2007, operating income was $203 million, net income was $28 million and diluted earnings per share Magnare $0.24. Excluding unusual items recorded during the fourth quarters of 2007 and 2006 (see "Unusual Items" below), operating income increased $102 million, net income increased $63 million, and diluted earnings per share increased $0.46.

During the three months ended December 31, 2007, Magna generated cash from operations before changes in non-cash operating assets and liabilities of $429 million, and generated $400 million from non-cash operating assets and liabilities. Total investment activities for the fourth quarter of 2007 Magnare $320 million, including $305 million in fixed asset additions, and a $15 million increase in investments and other assets.

UNUSUAL ITEMS

During the years ended December 31, 2007 and 2006, Magna recorded a number of unusual items: impairment charges related to long-lived assets; a valuation allowance on future income tax assets; restructuring charges associated with the assessment of our global operating structure and capacity; and other charges and gains. >>

A more detailed discussion of our consolidated financial results for the fourth quarter and year ended December 31, 2007 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.

DIVIDEND

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 December 31, 2007. The dividend of U.S. $0.36 per share is payable on March 19, 2008 to shareholders of record on March 10, 2008.

UPDATED 2008 OUTLOOK

For the full year 2008, Magna expect our consolidated sales to be between $24.9 billion and $26.2 billion, based on full year 2008 light vehicle production volumes of approximately 14.4 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 $450 and $475 in Europe. Magna expect our full year 2008 complete vehicle assembly sales to be between $3.6 billion and $3.9 billion.

In addition, Magna expect that full year 2008 spending for fixed assets will be in the range of $925 million to $975 million.

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

Magna is a leading global supplier of technologically advanced automotive systems, assemblies, modules and components. Magna design, develop and manufacture 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 in North America, Europe, Asia, South America and Africa. Our product capabilities span a number of major automotive areas including: 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; poMagnartrain systems; roof systems; as Magnall as complete vehicle engineering and assembly.

Magna has approximately 84,000 employees in 241 manufacturing operations and 62 product development and engineering centres in 23 countries.