Magna International (MG.TO) (MG.TO) (MGA.N), one of the world's biggest auto-parts makers, said on Friday quarterly profit dropped on a weak performance in Europe and it cut its profit margin outlook, sending the shares tumbling.

Earnings came in lower than analysts had expected even as revenue surged 24 percent in the second quarter.

The Aurora, Ontario-based company forecast operating margins of about 5 percent for the year, revising its previous forecast that put margins in a range of low to mid 5 percent.

At the same time it raised its total revenue forecast slightly to $27.5 billion to $28.9 billion for the year.

"Following the second-quarter miss and lower margin guidance, we expect consensus estimates to move lower," UBS analyst Tasneem Azim wrote in a note to clients.

The company, which closed one of four underperforming facilities in Europe in the first quarter, said it plans to dispose of another facility.

Magna, which set its capital budget for this year at $1 billion to $1.1 billion, had limited growth at its European and North American operations in the second quarter, compared a 48 percent rise in revenue from outside those regions.

"We ... expect considerable future sales growth in this segment," the company said in a statement, referring to its Rest of World unit.

Net income dropped to $282 million, or $1.15 a share, in the second quarter, from $294 million, or $1.30, a year earlier.

Adjusted earnings came in at $1.11 a share. On that basis, analysts had forecast earnings of $1.36 a share, according to Thomson Reuters I/B/E/S.

Revenue rose to $7.34 billion, higher than the $7 billion analysts had expected.

"Sales were strong as expected, powered by strong Detroit Three volumes and especially on key Magna platforms plus currency benefits from the Canadian dollar and European currencies," Canacoord Genuity analyst David Tyerman wrote in a note to clients.

Shares of the company fell as much as 22 percent to C$34.52 on Friday on the Toronto Stock Exchange.