Magna International cuts 2008 sales guidance

The guidance cut came at the same time the Canadian auto supplier reported a steep third-quarter loss and cut its dividend it half, also citing the drop off in vehicle demand.

Magna said it now expects to post sales of $23.2 billion to $24.3 billion, down from its previous projection of $24.3 billion to $25.6 billion in sales. Analysts polled by Thomson Reuters expect $24.77 billion in sales for the year.

Magna said it expects its sales to continue to be hurt by slumping demand for new vehicles in both North America and Europe. The company said it now expects 2008 vehicle production to total about 12.8 million units in North America and about 14.9 million units in Europe.

Full-year average dollar content per vehicle is expected to total between $835 and $860 in North America and between $475 and $495 in Europe. Complete vehicle assembly sales are expected to be between $3.25 billion and $3.45 billion, Magna said.