Magna net takes a $205 mn knock on demand decline

TORONTO: Magna International, the Canadian auto parts maker that is bidding for General Motors��� European Opel business, said on Friday it lost $205 million in the second quarter as the global recession depressed auto sales and demand for its products. Magna, along with Russian lender Sberbank, is among the suitors for GM���s Opel unit.

The other potential suitor is Brussels-based investor RHJ International. Aurora, Ontario-based Magna said its loss amounted to $1.83 per share for the quarter ended June 30, compared with a profit of $227 million, or $1.98 per share, a year ago.

Analysts predicted a loss of $1.01 per share. Sales for the period ended June 30 slid 45% to $3.71 billion from $6.71 billion and well below Wall Street���s estimate of $4.1 billion. Magna said complete vehicle assembly sales slumped 60% to $423 million.