Magna Announces FY07 Results

Magna International Inc. (TSX: MG.A; NYSE: MGA) today reported financial results for the fourth quarter and year ended December 31, 2007.

YEAR ENDED DECEMBER 31, 2007

We posted sales of $26.1 billion for 2007, an increase of 8% over 2006. This higher sales level was achieved as a result of increases in our North American, European and Rest of World production sales offset in part by reductions in complete vehicle assembly sales, and tooling, engineering and other sales.

During 2007, North American and European average dollar content per vehicle increased 11% and 20% respectively, over 2006. During 2007, North American vehicle production declined 2% while European vehicle production increased 3%, each compared to 2006.

Complete vehicle assembly sales decreased 8% to $4.0 billion for 2007 compared to $4.4 billion for 2006 and complete vehicle assembly volumes decreased 19% to approximately 200,000 units.

During 2007, operating income was $1.152 billion, net income was $663 million and diluted earnings per share were $5.86. Excluding the unusual items recorded during 2007 and 2006 (see "Unusual Items" below), operating income increased $257 million, net income increased $202 million, and diluted earnings per share increased $1.65.

During 2007, we generated cash from operations before changes in non-cash operating assets and liabilities of $1.7 billion, and invested $94 million in non-cash operating assets and liabilities. Total investment activities for 2007 were $977 million, including $741 million in fixed asset additions, a $190 million increase in investments and other assets, and $46 million to purchase subsidiaries.

THREE MONTHS ENDED DECEMBER 31, 2007

We posted sales of $6.8 billion for the fourth quarter ended December 31, 2007, an increase of 7% over the fourth quarter of 2006. This higher sales level was achieved as a result of increases in North American, European and Rest of World production sales, offset in part by reductions in complete vehicle assembly sales, and tooling, engineering and other sales.

During the fourth quarter of 2007, North American and European average dollar content per vehicle increased 13% and 26% respectively, over the comparable quarter in 2006. During the fourth quarter of 2007, North American vehicle production increased by 1% and European vehicle production declined 1%, each compared to the fourth quarter of 2006.

Complete vehicle assembly sales decreased 21% to $981 million for the fourth quarter of 2007 compared to $1.25 billion for the fourth quarter of 2006 and complete vehicle assembly volumes decreased 36% to approximately 42,000 units.

During the fourth quarter of 2007, operating income was $203 million, net income was $28 million and diluted earnings per share were $0.24. Excluding unusual items recorded during the fourth quarters of 2007 and 2006 (see "Unusual Items" below), operating income increased $102 million, net income increased $63 million, and diluted earnings per share increased $0.46.

During the three months ended December 31, 2007, we generated cash from operations before changes in non-cash operating assets and liabilities of $429 million, and generated $400 million from non-cash operating assets and liabilities. Total investment activities for the fourth quarter of 2007 were $320 million, including $305 million in fixed asset additions, and a $15 million increase in investments and other assets. -- www.cnxmarketlink.com

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