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Magna International reports that Q1 profit is down

Magna International Inc. says its first-quarter profit fell compared with a year ago as it recorded US$316 million in asset impairments and restructuring costs related to troubled electric vehicle company Fisker.

Magna builds the Ocean SUV for Fisker, which failed to make a required interest payment in March and warned it could seek bankruptcy protection.

Magna, which keeps its books in U.S. dollars, says it earned US$9 million or three cents US per diluted share for the quarter ended March 31.

The result was down from a profit of US$209 million or 73 cents US per diluted share a year earlier.

Sales for the quarter totalled US$10.97 billion, up from US$10.67 billion in the same quarter last year.

On an adjusted basis, Magna says it earned US$1.08 per diluted share in its latest quarter, down from an adjusted profit of US$1.15 per diluted share a year earlier.