Magna also updated its 2023 and 2025 financial outlooks to reflect the acquisition of Veoneer Active Safety this year. It expects sales of between $41.9 billion and $43.5 billion this year, up from a previous estimate of $40.2 billion and $41.8 billion. It expects 2025 sales of between $46.7 billion and $49.2 billion, up from between $44.7 billion and $47.2 billion.
The revision solely reflects the addition of business from Veoneer Active Safety, with all other assumptions remaining unchanged.
The acquisition is expected to drive growth in Magna’s overall active safety business, increasing to about $4.25 billion in sales by 2027 from around $600 million in 2022.
The company also anticipates its electric powertrain sales to rise at about 35 percent annually to about $4 billion in 2027, compared with around $800 million in 2022. The $4 billion estimate for 2027 is lower than the $4.5 billion Magna had anticipated by then in 2022, a dip the company said is the result of foreign exchange.
Magna expects to “roughly” double sales at its unit that manufactures electric powertrains and parts for EVs this year as automakers rush to roll out more affordable, greener models.
The supplier also said it was intensifying its efforts to use automation and other smart manufacturing activities to help reduce costs from inflationary headwinds.
And it said it expects its joint venture with LG Electronics to become profitable this year. The JV, which supplies EV components to manufacturers, will open its fourth factory by 2025 in Hungary, the companies said this week.
Magna ranks No. 4 on the Automotive News list of the top 100 global suppliers with worldwide parts sales to automakers of $37.8 billion in 2022.
Reuters contributed to this report.