(Reuters) - Magna International Inc. said on Thursday that it swung to a quarterly profit on the back of a pickup in global vehicle production rates and cost cuts and also reinstated its quarterly dividend.
The Canadian auto parts maker also inked an agreement with founder, Frank Stronach's group under which Class A subordinate voting shares could choose to eliminate the dual class share structure by which Stronach have controlled Magna.
The company, which reinstated its quarterly dividend at $0.18 per share, also said that it established a joint venture with the Stronach group make electric vehicles.
For the first quarter, the Canadian auto parts maker said it earned $223 million, or $1.97 a share. That compares to a loss of $200 million, or $1.79 a share, a year earlier.
The gain from the sale of an electronics systems facility in China contributed $0.12 per share in the latest first quarter.
Analysts had been expecting 80 cents a share, according to Thomson Reuters I/B/E/S.
Revenue was up 54 percent at $5.51 billion, compared with estimates of $5.14 billion.
The Aurora, Ontario-based company said complete vehicle assembly sales rose 11 percent in the quarter to $446 million.
Magna's shares closed at C$64.27 on the Toronto Stock Exchange on Wednesday.
Reporting by Aftab Ahmed in Bangalore; Editing by Savio D'Souza
Reuters Canada
