Auto parts giant Magna raises concerns about protectionist trade measures

Magna (TSX:MG), based in Aurora, Ont., has operations in 29 countries including the U.S. and Mexico.

In identifying some of its more significant risks in its quarterly financial report, the global supplier said the auto industry is dependent on open borders, particularly in Europe and North America.

“The continued growth of protectionist sentiments and implementation of measures which impede the free movement of goods, services, people and capital could have a material adverse effect on our operations, profitability or results of operations,” the company said.

U.S. President Donald Trump has said he wants changes to the North American Free Trade Agreement, complained about automakers shifting production to Mexico, and raised the possibility of tariffs.

He has also pulled the country from participation in the Trans-Pacific Partnership.

The moves in the U.S. come amid rumblings in Europe where Marine Le Pen and her National Front are campaigning on promises to get France out the euro and the European Union.

Magna said Friday its profit for the last three months of 2016 amounted to US$478 million or US$1.24 per diluted share, slightly up from a profit of US$476 million or US$1.17 per diluted share in the same period a year earlier.

Sales in the quarter totalled US$9.25 billion, up from US$8.57 billion.

The company also raised its quarterly dividend to 27.5 cents per share from 25 cents per share.

The Canadian Press

by Canadian Press

Auto parts giant Magna raises concerns about protectionist trade measures

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