Magna International Inc. (MGA - Free Report) introduced a pre-defined automatic securities purchase plan (Plan) that lays out the instructions and strict parameters for Common Shares repurchases so that it never violates regulatory restrictions.
The Plan will be facilitated by a designated broker under the current normal course issuer bid. Toronto Stock Exchange (TSX) has reviewed the plan and was effective from Jul 1, 2013.
The Plan may be terminated if the purchase limit mentioned in the plan has been reached or if Magna terminate the Plan complying with its terms. It can also be closed if the issuer bid terminates.
Magna, under the issuer bid beginning on Nov 13, 2012 and ending on Nov 12, 2013, is authorized to repurchase up to 12,000,000 Common Shares. As of Jun 27, 2013, the company has repurchased 7,215,205 Common Shares.
The stocks may be purchased under the Bid on TSX in accordance with the rules and policies of the exchange or on the New York Stock Exchange in compliance with Rule 10b-18 under the U.S. Securities Exchange Act of 1934. It can also be purchased on other published markets or in pursuant to private agreement purchases.
Magna International, based in Aurora, Canada, is a leading manufacturer and supplier of automotive components. The company designs, develops and manufactures automotive systems, assemblies, modules and components, besides engineering and assembling complete vehicles, primarily for sale to original equipment manufacturers (OEMs) of cars and light trucks. The company currently carries a Zacks Rank #1(Strong Buy).
Magna reported earnings per share of $1.57 in the first quarter of 2013, up 7.5% from $1.46 in the year-ago quarter and outpaced the Zacks Consensus Estimate of $1.40. Revenues went up 9.1% to $8.4 billion in the reported quarter, exceeding the Zacks Consensus Estimate of $7.9 billion. The increase was driven by improvement in North American and Rest of World (ROW) production sales and higher tooling, engineering and other sales.
Few stocks that are performing well in the industry where Magna operates include Visteon Corp. (VC - Free Report) , China Zenix Auto International Limited and Johnson Controls Inc. (JCI - Free Report) . Visteon carries a Zacks Rank #1 (Strong Buy), while China Zenix Auto and Johnson Controls are Zacks Rank#2 (Buy) stock.