TORONTO – Magna International Inc. shares shot up six per cent Friday morning, a day after the auto parts giant raised its dividend 10 per cent and reported fatter profits.
Stock in the Aurora, Ont.-based company (TSX:MG) jumped $2.85 to $47.80 in early trading.
Canada’s largest auto parts maker said after markets closed Thursday that net profits rose to US$312 million, or $1.32 per share in the three months ended Dec. 31.
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That beat analyst expectations for the big industrial company, which operates around the world and is a major supplier to the Detroit Three automakers and companies such as Volkswagen and other European carmakers.
The quarterly profits were 42 per cent higher than the $219 million, or 89 cents per share, Magna earned in the same year-earlier period.
Sales grew 13 per cent to nearly $7.3 billion from $6.4 billion, meeting analyst expectations.
In a related move, the company said it is boosting its dividend 10 per cent to 27.5 cents a share from 25 cents and will be paid March 12. As the company has improved its financial performance in recent years, it is routinely boosting its payment to shareholders.
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