Magna International Inc. (MGA) recently announced that its operational unit Magna Electronics and Mobileye, its image processing partner, has jointly launched an efficient and unique driver assistance system that employs a single, forward-looking video camera to provide safety and convenience features including forward collision and lane departure warnings.
This newly developed driver assistance system marks the partnership’s third product launch. The first product was the Lane Departure Warning system based on the EyeQ1 while the second one was an updated Mobileye processor named EyeQ2.
Magna claims that this device is cheaper than the comparable systems recently deployed in General Motors Company (GM) vehicles in North America. The comparable systems will also be available as an option on the 2012 Chevrolet Equinox and GMC Terrain.
Magna expects that the market demand for the newly launched product will remain high owing to its favorable pricing and improved technologies used to prevent two serious types of accidents, rear-end collisions and lane departure accidents. While the first one is the most common type of vehicle accident, the second one is considered to be the most deadly.
Magna, a Zacks #5 Rank (Strong Sell) stock, is a leading manufacturer and supplier of automotive components based in Aurora, Canada. The company designs, develops and manufactures automotive systems, assemblies, modules and components, besides engineering and assembling complete vehicles, primarily for sale to OEMs of cars and light trucks.
The company earned $226 million or 94 cents per share in the third quarter of 2011 compared with $256 million or $1.10 per share in the year-ago quarter. Revenues increased 21% to $6.97 billion, driven by higher sales across all its operations. Gross profit improved 2% to $769 million, despite a 24% rise in cost of goods sold to $6.20 billion.
Magna expects total sales to range between $28.1 billion and $28.9 billion for full-year 2011. Region wise, the company anticipates sales to range between $13.6 billion and $13.9 billion in North America, $8.5 billion and $8.7 billion in Europe and $23.4 billion and $24.0 billion in Rest of the World for 2011.
