Magna To Repurchase Around 28.5 Mln Shares, Cuts Annual Sales Guidance Below View

(RTTNews) - Magna International Inc. (MGA, MG.TO), a Canadian automotive parts maker, said on Friday that its Board has approved a new Normal Course Issuer Bid or NCIB to buy back up to around 28.5 million shares, or approximately 10 percent of the public float.

This NCIB is expected to commence on or about November 7, and will be terminated a year later.

In addition, the firm has revised down its full-year guidance, in which Magna anticipates revenue in line with Street view.

For the full year, the company now expects adjusted income of $1.45 billion to $1.55 billion, compared with prior outlook of $1.5 billion to $1.7 billion.

Sales is now projected to be $42.2 billion to $43.2 billion, lower than previous outlook for $42.5 billion to $44.1 billion.

Analysts, on average, polled by Thomson Reuters expect the firm to post revenue of $42.79 billion, for the year. Analysts' estimates typically exclude special items.

The Board has declared a third-quarter dividend of $0.475 per share, to be paid on November 29, to shareholders of record as of November 15.