Magna International Inc. (MGA) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

November 4, 2022 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Greetings, and welcome to the Magna International Q3 2022 Results Conference Call. During the presentation, all participants will be in a listen-only mode. After which we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded, Friday, November 4, 2022.

It is now my pleasure to turn the conference over to Louis Tonelli, Vice President, Investor Relations. Please go ahead.

Louis Tonelli

Thanks, Tina. Hello, everyone, and welcome to our conference call covering our Q3 '22 results. Joining me today are SwamyKotagiri, Vince Galifi and Pat McCann. Yesterday, our Board of Directors met and approved our financial results for Q3 '22. We finished -- we issued our press release this morning outlining our results. You'll find the press release, today's conference call webcast, the slide presentation to go along with the call and our updated quarterly financial review all in the Investor Relations section of our website at magna.com.

Before we get started, just as a reminder, the discussion today may contain forward-looking information or forward-looking statements within the meaning of applicable securities legislation. Such statements involve certain risks, assumptions and uncertainties, which may cause the company's actual or future results and performance to be materially different from those expressed or implied in these statements. Please refer to today's press release for a complete description of our safe harbor disclaimer. Please also refer to the reminder slide included in today's deck related to today's commentary.

And with that, I'll pass it over to Swamy.

Swamy Kotagiri

Thank you, Louis. Good morning, everyone. Happy to be here to provide a general update on Magna as well as our Q3 results. Key takeaways from today's call. We continue to manage through a difficult operating environment and our results for the third quarter improved both on a year-over-year basis and on a sequential basis compared to last quarter. Excluding the disappointing performance at certain facilities, which impacted our third quarter and is contributing to our reduced outlook, our results were in line with our expectations. We expect another sequential improvement of earnings in Q4, including as a result of our efforts to secure cost recoveries from customers, and we have reduced our sales and margin outlook for 2022, mainly reflecting increased operating inefficiencies and lower production assumptions. And while we are highly focused on addressing short-term external and internal challenges, we continue to make progress on our go-forward strategy to drive our future business.