Magna International Inc. (MGA, MG.TO), the Canadian automotive parts manufacturer, announced on Friday that its Board has sanctioned a new Normal Course Issuer Bid (NCIB). This initiative will allow the repurchase of up to approximately 28.5 million shares, accounting for around 10 percent of the company's public float.
The NCIB is set to initiate on or around November 7 and will conclude one year later.
Moreover, the company has adjusted its full-year guidance downward, now forecasting revenue in alignment with market expectations.
Magna has revised its full-year adjusted income forecast to a range of $1.45 billion to $1.55 billion, down from the previous estimate of $1.5 billion to $1.7 billion.
The sales projection has been adjusted to between $42.2 billion and $43.2 billion, revising the earlier forecast of $42.5 billion to $44.1 billion.
On average, analysts surveyed by Thomson Reuters predict the company will report revenue of $42.79 billion for the year. It should be noted that analysts’ projections typically exclude special items.
Additionally, the Board has announced a third-quarter dividend of $0.475 per share, scheduled for disbursement on November 29 to shareholders recorded as of November 15.
