The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Pat, sorry, I'm still a little confused on the $290 million of net input costs. Is that -- I thought the comparable number when you released the initial
guidance was $190 million, and therefore, that's up $100 million. Is that correct or not correct?
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APRIL 29, 2022 / 12:00PM, MG.TO - Q1 2022 Magna International Inc Earnings Call
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Okay. That's clear now. My next question, on the normal course issuer bid, if I did my math correctly, you bought back about 2% of the stock during
the quarter. Your debt-to-EBITDA ratio is at 1.55, which is slightly through, I think, the high end of your -- of the range where you like to be, albeit
on a very low denominator given where global vehicle production volumes are. And -- but you're through the high end of the range, and I noticed
your -- like with the revised 2022 guidance, your free cash flow estimates are coming down. So what should we expect on the NCIB going forward?
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Okay. And then just my last question is in the write-up when you're talking about the quarter being a little bit above your expectation, I believe,
you're -- in the earnings, you said one of the reasons was higher commercial items. I wasn't too sure. I don't think, I've heard you use that expression
before. Is that price adjustments from customers? Or what are commercial items?
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: Maybe not maybe just putting aside the $290 million just sort of costs in general, I'm just curious sort of when you think about the cost inflation
you're facing, so what you think is more structural? If you think there's any longer-term sort of implication for margin and maybe some of the things
you can do to offset some of those costs?
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: Yes, right. I guess, on the $565 million for the year, -- can you maybe rank order -- again, I appreciate the $290 million it sounds like energy break,
but could you maybe rank order that -- the components of that $565 million?
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: Maybe just to follow up. I think it was Peter's question on the NCIB. Just if I'm reading it correctly, the 1.55 or the 1.5, it's not a hard stop. There's --
we should expect some buyback actually this year, correct?
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