Canada. The company reported its financial results for the first quarter ended March 31, 2024.
The company's sales grew 3% to $11 billion, compared with a 2% increase in global light-duty vehicle production. There was also a 3% increase over the first quarter of 2023, compared to a 2% increase in global light-duty vehicle production, including 2% and 11% higher production in North America and China, respectively, partially offset by 2% lower production in Europe.
In addition to higher global production, sales benefited from the launch of new programs and the acquisition of Veoneer Active Safety, while sales were negatively impacted by lower volumes in the Complete Vehicles segment and the net weakening of currencies against the U.S. dollar.
"Our first-quarter results exceeded our sales and earnings expectations, excluding the impact of impairment charges. As a result of our continued focus on cost containment, customer recovery and operational excellence, we maintain our 2024 adjusted EBIT margin guidance and see continued progress in our planned margin expansion despite the uncertainty of electrification volumes and product mix in the industry." Swamy Kotagiri, CEO of Magna.
Adjusted EBIT increased to $469 million in the first quarter of 2024, up from $449 million in the first quarter of 2023. The increase primarily reflected higher sales gains, including higher margins due to the impact of operational excellence and cost initiatives, productivity and efficiency improvements, including lower costs at certain previously underperforming facilities, higher net earnings from foreign exchange transactions and lower net collateral costs.
Magna recorded asset impairments and restructuring costs totaling $316 million related to Fisker. The impairments exclude the impact of deferred revenue of approximately $195 million that will be recognized in revenue as performance obligations are met or upon termination of the agreement for the manufacture of the Fisker Ocean SUV.
Investment activities in the first quarter of 2024 included $493 million in fixed asset additions and an increase of $125 million in investments, other assets and intangible assets.
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