Magna International Inc. (NYSE:MGA) Q2 2024 Earnings Conference Call August 2, 2024 8:00 AM ET

Company Participants

Swamy Kotagiri - Chief Executive Officer
Patrick McCann - Executive Vice President, Chief Financial Officer
Louis Tonelli - Vice President, Investor Relations

Conference Call Participants

John Murphy - Bank of America
Adam Jonas - Morgan Stanley
Tamy Chen - BMO Capital Markets
Dan Levy - Barclays
James Picariello - BNP Paribas
Mark Delaney - Goldman Sachs
Itay Michaeli - Citi
Brian Morrison - TD Cowen
Joseph Spak - UBS Securities
Colin Langan - Wells Fargo

Operator

Good morning and welcome to the Magna International Inc. second quarter 2024 results webcast call.

All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star, one again. Thank you.

I would now like to turn the call over to Louis Tonelli, Vice President, Investor Relations. Please go ahead.

Louis Tonelli

Thanks Operator. Hello everyone and welcome to our conference call covering our second quarter of 2024. Joining me today are Swamy Kotagiri and Pat McCann.

Yesterday, our board of directors met and approved our financial results for the second quarter of 2024 and updated outlooks for ’24 and ‘26. We issued a 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 our reminder slide included in the presentation that relates to our commentary today.

With that, I’ll pass it over to Swamy.

Swamy Kotagiri

Thank you Louis. Good morning everyone. I appreciate you joining our call today. Let’s jump right in.

Before getting into some of the details from the second quarter, let me highlight a few key takeaways. Our Q2 operating performance was largely in line with our expectations with sales of $11 billion and adjusted EBIT margin of 5.3%. We are executing to our margin outlook from the start of 2024. Operational excellence activities remain on track to collectively contribute about 75 basis points to margin expansion during 2024 and ’25.