Magna International Inc.

Magna Announces First Quarter Results

AURORA, Canada, May 6 /PRNewswire/ --     Magna International Inc. (TSX: MG.A; 
NYSE: MGA) today reported financial
results for the first quarter ended March 31, 2009.

                                                         THREE MONTHS ENDED
                                                         March 31,  March 31,
                                                             2009       2008

     Sales                                                $ 3,574    $ 6,622

     Operating (loss) income                              $  (230)   $   286

     Net (loss) income                                    $  (200)   $   207

     Diluted (loss) earnings per share                    $ (1.79)   $  1.78

     All results are reported in millions of U.S. dollars, except per share
     figures, which are in U.S. dollars.


Three Months Ended March 31, 2009

    We posted sales of US$3.6 billion for the first quarter ended March 31,
2009, a decrease of 46% from the first quarter of 2008. This lower sales
level was a result of decreases in our North American, European and Rest of
World production sales, complete vehicle assembly sales, and tooling,
engineering and other sales.

    During the first quarter of 2009, North American average dollar content
per vehicle increased by 4% while our European average dollar content per
vehicle decreased by 4%, each compared to the first quarter of 2008. In
addition, North American and European vehicle production declined 50% and
40%, respectively, each compared to the first quarter of 2008.

    Complete vehicle assembly sales decreased 63% to US$401 million for the
first quarter of 2009 compared to US$1,086 million for the first quarter of
2008, while complete vehicle assembly volumes declined 72% to approximately
12,043 units.

    During the first quarter of 2009, operating loss was US$230 million, net
loss was US$200 million and diluted loss per share was US$1.79, decreases of
US$516 million, US$407 million and US$ 3.57, respectively, each compared to
the first quarter of 2008.

    During the first quarter ended March 31, 2009, we generated cash from
operations of US$9 million before changes in non-cash operating assets and
liabilities, and invested US$52 million in non-cash operating assets and
liabilities. Total investment activities for the first quarter of 2009 were
US$114 million, including US$96 million in fixed asset additions, and US$22
million increase in other assets.

    A more detailed discussion of our consolidated financial results for the
first quarter ended March 31, 2009 is contained in the Management's
Discussion and Analysis of Results of Operations and Financial Position and
the unaudited interim consolidated financial statements and notes thereto,
which are attached to this Press Release.


    Our Board of Directors yesterday voted to suspend our quarterly dividend
with respect to our Class A Subordinate Voting Shares and Class B shares.

    Vincent J. Galifi, our Executive Vice President and Chief Financial
Officer said, "We are facing the worst industry conditions in decades,
particularly in our primary markets. These conditions continue to adversely
affect our financial results and cash flow. We believe preserving cash and
maintaining a strong financial position is prudent at this time. Our Board's
decision to suspend our dividend as a result of continued uncertainty about
the timing of an industry recovery is consistent with this view. We will
continue to comply with our Corporate Constitution, which sets out minimum
dividend distributions, based on our profitability."

    We are the most diversified global automotive supplier. We design,
develop and manufacture technologically advanced automotive systems,
assemblies, modules and components, and engineer and assemble complete
vehicles, primarily for sale to original equipment manufacturers ("OEMs") of
cars and light trucks. Our capabilities include the design, engineering,
testing and manufacture of automotive interior systems; seating systems;
closure systems; body and chassis systems; vision systems; electronic
systems; exterior systems; powertrain systems; roof systems; as well as
complete vehicle engineering and assembly.

    We have approximately 70,000 employees in 240 manufacturing operations
and 86 product development, engineering and sales centres in 25 countries.

    We will hold a conference call for interested analysts and shareholders
to discuss our first quarter results on Wednesday, May 6, 2009 at 1:30 p.m.
EST. The conference call will be chaired by Vincent J. Galifi, Executive
Vice-President and Chief Financial Officer. The number to use for this call
is 1-800-892-9785. The number for overseas callers is +1-212-231-2910. Please
call in 10 minutes prior to the call. We will also webcast the conference
call at The slide presentation accompanying the
conference call will be available on our website Tuesday morning prior to the

    For further information, please contact Louis Tonelli, Vice-President,
Investor Relations at +1-905-726-7035.

    For teleconferencing questions, please contact Karin Kaminski at

Forward-Looking Statements

    The previous discussion may contain statements that, to the extent that
they are not recitations of historical fact, constitute "forward-looking
statements" within the meaning of applicable securities legislation.
Forward-looking statements may include financial and other projections, as
well as statements regarding our future plans, objectives or economic
performance, or the assumptions underlying any of the foregoing. We use words
such as "may", "would", "could", "will", "likely", "expect", "anticipate",
"believe", "intend", "plan", "forecast", "project", "estimate" and similar
expressions to identify forward-looking statements. Any such forward-looking
statements are based on assumptions and analyses made by us in light of our
experience and our perception of historical trends, current conditions and
expected future developments, as well as other factors we believe are
appropriate in the circumstances. However, whether actual results and
developments will conform with our expectations and predictions is subject to
a number of risks, assumptions and uncertainties, including, without
limitation: the potential for an extended global recession, including its
impact on our liquidity; declining production volumes and sales levels; the
impact of government financial intervention in the automotive industry;
restructuring of the global automotive industry, including the bankruptcy of
Chrysler and the risk of the bankruptcy of other customers; the financial
distress of some of our suppliers and the risk of their insolvency,
bankruptcy or financial restructuring; restructuring and/or downsizing costs
related to the rationalization of some of our operations; impairment charges;
shifts in technology; our ability to successfully grow our sales to
non-traditional customers; a reduction in the production volumes of certain
vehicles, such as certain light trucks; our dependence on outsourcing by our
customers; risks of conducting business in foreign countries, including
Russia, India and China; our ability to quickly shift our manufacturing
footprint to take advantage of lower cost manufacturing opportunities; the
termination or non-renewal by our customers of any material contracts;
disruptions in the capital and credit markets; fluctuations in relative
currency values; our ability to successfully identify, complete and integrate
acquisitions; our ability to offset price concessions demanded by our
customers; the continued exertion of pricing pressures by our customers;
warranty and recall costs; product liability claims in excess of our
insurance coverage; changes in our mix of earnings between jurisdictions with
lower tax rates and those with higher tax rates, as well as our ability to
fully benefit tax losses; other potential tax exposures; legal claims against
us; work stoppages and labour relations disputes; changes in laws and
governmental regulations; costs associated with compliance with environmental
laws and regulations; potential conflicts of interest involving our indirect
controlling shareholder, the Stronach Trust; and other factors set out in our
Annual Information Form filed with securities commissions in Canada and our
annual report on Form 40-F filed with the United States Securities and
Exchange Commission, and subsequent filings. In evaluating forward-looking
statements, readers should specifically consider the various factors which
could cause actual events or results to differ materially from those
indicated by such forward-looking statements. Unless otherwise required by
applicable securities laws, we do not intend, nor do we undertake any
obligation, to update or revise any forward-looking statements to reflect
subsequent information, events, results or circumstances or otherwise.

    For further information about Magna, please see our website at Copies of financial data and other publicly filed
documents are available through the internet on the Canadian Securities
Administrators' System for Electronic Document Analysis and Retrieval (SEDAR)
which can be accessed at and on the United States
Securities and Exchange Commission's Electronic Data Gathering, Analysis and
Retrieval System (EDGAR) which can be accessed at

    For further information: Louis Tonelli, Vice-President, Investor
Relations, +1-905-726-7035; Teleconferencing questions: Karin Kaminski,