Magma Q3 Report 2022
Our operating results are primarily dependent on the levels of North American, European and Chinese car and light truck production by our customers. While we supply systems and components to every major original equipment manufacturer [“OEM”], we do not supply systems and components for every vehicle, nor is the value of our content consistent from one vehicle to the next. As a result, customer and program mix relative to market trends, as well as the value of our content on specific vehicle production programs, are also important drivers of our results.
In the third quarter of 2022:
- Global light vehicle production increased 24% from the third quarter of 2021, including increases of 24% and 25% in our two largest markets of North America and Europe, respectively. The increase largely reflects the significant industry production disruptions during the third quarter of 2021 caused by global semiconductor chip shortages. These industry production disruptions continued in the third quarter of 2022, but to a lesser extent than we experienced in the third quarter of 2021.
- Total sales increased 17% to $9.3 billion, compared to $7.9 billion in the third quarter of 2021. Excluding the impact of foreign currency translation, sales increased 27% largely reflecting higher global light vehicle production, the launch of new programs and customer price increases to recover certain higher production input costs.
- Diluted earnings per share were $1.00 and adjusted diluted earnings per share were $1.07. Adjusted diluted earnings per share increased $0.51 compared to the third quarter of 2021, primarily reflecting contribution on higher sales, higher commercial settlements, and a $45 million provision on engineering service contracts with the automotive unit of Evergrande in the third quarter of 2021, partially offset by higher net production input costs and operating inefficiencies at a facility in Europe.
- Cash from operating activities was $238 million, a decrease of $162 million from the third quarter of 2021.
- We returned $305 million to shareholders by way of share repurchases and dividends.
- We invested in Yulu Mobility, India’s largest electrified mobility provider and together with Yulu Mobility, established a new battery swapping entity (“Yulu Energy”) to support the rapid growth in electrification of mobility and required infrastructure. Our combined investment in Yulu Mobility and Yulu Energy was $77 million.
