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Non-Tech : Sungold Gaming International (SGGNF) -- Ignore unavailable to you. Want to Upgrade?

To: Roger G. Budgell who wrote (3837)	5/24/1999 9:53:00 PM
From: L. D.	Respond to of 5164

Roger, Somehow I don't think this has anything to do with our company. Key words are: <<<<...... manage almost all of Magna's automotive-related real estate.>>> Read on: <<<A special committee of the board is reviewing a proposal to establish Ventures as a separate public company. Ventures will operate independently of MI Developments Inc., Magna's real estate arm. MID will continue to hold, develop and manage almost all of Magna's automotive-related real estate and will be 100% owned by the company.>> Saturday, May 15, 1999 Magna results beat analysts' estimates 1st q profit up 10%: GM plans more orders, auto parts giant announces David Steinhart Financial Post Auto parts giant Magna International Inc. beat analysts' forecasts with a 10% rise in first-quarter profit, the company reported yesterday. Magna also announced that General Motors Corp. plans to increase its order for GMC Sierra and Chevrolet Silverado bodies and parts to between 900,000 and 950,000 a year from 700,000. The increase should come into effect in the third quarter of this year, Graham Orr, Magna executive vice-president, said during a conference call. Net income for the first quarter ended March 31 was $109-million (all figures in U.S. dollars) or $1.22 a share, compared with $99-million ($1.20) in the quarter ended April 30, 1998. Magna changed its fiscal year-end from July 31 to December 31 and changed its reporting currency to U.S. dollars. One aspect of the change means last year's first quarter ended April 30, while this year's came in a month earlier, making comparisons a little more difficult. "I think the good results are a function of the high automotive output right now," said Rob McConnachie, an analyst with Scotia Capital Markets in Vancouver. Mr. Orr also said Magna's 1999 net earnings would be "in the general range" of $4.85 a share. The First Call analysts' consensus estimate for 1999 is $4.88. First quarter sales were $2.2- billion, up 39% over the quarter ended April 30 1998. Magna recently announced the formation of MagnaWorks, a joint venture with Magellan Corp., a subsidiary of Orbital Sciences Corp. MagnaWorks, owned 70% by Magna and 30% by Magellan, will design and integrate navigation and information systems for passenger and commercial vehicles. "It gives us an outstanding electronic technology platform upon which to build future information and entertainment systems," said Don Walker, Magna's president and chief executive. Mr. Orr said Magna's board has also approved in principle the establishment of the previously-announced Ventures unit to hold all of the company's non-automotive assets. A special committee of the board is reviewing a proposal to establish Ventures as a separate public company. Ventures will operate independently of MI Developments Inc., Magna's real estate arm. MID will continue to hold, develop and manage almost all of Magna's automotive-related real estate and will be 100% owned by the company. The board is expected to approve Ventures May 25 and will authorize distributing a minority equity interest in the new company in the form of subordinate voting shares to shareholders of Magna. Once Ventures is established, Magna plans to reduce its ownership to a minority position. Magna's stock closed yesterday at $90.10, down $1.90. Meanwhile, the state of Michigan this week passed a law that taxes Canadian automotive companies with sales in the state. However, it appears the tax will not be retroactive, saving companies here millions of dollars initially. Companies such as Magna and smaller parts firms will be affected by the tax. Total Canadian sales to Michigan's 17 auto assembly plants exceed $1-billion a year.