(Recasts with forecast, adds context, background)
By Allison Martell
Aug 7 (Reuters) - Magna International Inc MG.TO MGA.N ,
the Canadian auto parts maker, reported slightly lower
second-quarter earnings on Friday as the impact of a strong U.S.
dollar offset increased vehicle production in North America, and
raised its margin forecast.
Auto sales in the United States and Canada were robust in
the quarter as cheaper gasoline and low interest rates drove the
shift toward sport utility vehicles and pickup trucks.
But the dollar .DXY has gained about 20 percent against a
basket of major currencies in the past 12 months, making sales
in Canada, Europe and elsewhere less valuable in dollar terms.
Magna said currency translation reduced sales by $890 million in
the quarter.
The company slightly raised its 2015 sales forecast to $30.9
billion to $32.6 billion from $30.8 to $32.5 billion, but
expects the 2015 operating margin to be about 8 percent, higher
than the high-7-percent range it forecast in May.
In April, it sold much of its vehicle interiors business,
typically a lower-margin business, to Spain's Grupo Antolin.
Last month it said it had agreed to buy closely held automotive
transmissions producer Getrag.
Magna is a major auto parts supplier but also engineers and
assembles vehicles for automakers, like BMW's BMWG.DE Mini and
Daimler 's DAIGn.DE Mercedes-Benz.
Net income fell to $483 million, or $1.16 a share, from $510
million, or $1.16 a share, a year earlier.
On an adjusted basis, the company earned $1.19 per share for
the second quarter, slightly above the average analyst estimate
of $1.18, according to Thomson Reuters I/B/E/S. Sales fell 8.7
percent to $8.13 billion, while Wall Street expected $8.09
billion.
Magna said in July it would buy privately owned German car
parts maker Getrag for 1.75 billion euros ($1.91 billion) to
expand its automotive transmission systems business.
Up to Thursday's close of C$71.37, Magna shares gained about
22 percent in the previous 12 months on the Toronto Stock
Exchange.