Magna International Inc Q2 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : Pat, a question for you. In the last 2 quarters, you've given us an update on the magnitude of the unrecoverable incremental costs. I believe your last update was $565 million on an annual basis. Now there seems to be some puts and takes listening to the discussion. This morning, it sounds like you do -- you have had some successful commercial settlements with your customers. It sounds like commodity costs are easing somewhat. I'm just wondering if you can give us an update on that number.

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : Okay. And then my next question is I believe it was just over $400 million of impairment charges you took during the quarter. Is the lion's share of that impairment of the Russian assets?

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : Okay. And Pat, when you say fully impaired, you mean it's impaired to 0, so we won't see that in future quarters?

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : Okay. And then my last question -- and then my last question for the management team. I'm just wondering if you could give some flavor around the performance of the Power & Vision. There was no revenue growth. Your margins deteriorated year-over-year, I think, from about down to 3%-ish. And I thought you might have had some growth there and improvement your ADAS programs come on. So I'm wondering if you could just talk a little bit about what's unfolding in that segment?

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : Okay. And there's no revenue growth. I thought some of your ADAS programs would be ramping by this time.

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : Meaning it's in the equity line?