Welcome to the Daily 5 report for Friday, Aug. 1.
We're about halfway through the second-quarter earnings season and we're getting the usual mixed bag of financial results from top-tier auto suppliers. The reports underscore concerns about tariffs, electrification and other headwinds, but most of the suppliers are powering through cautiously optimistic about the full year.
Canada's Magna International Inc. took its turn under the financial microscope today and said it generated a 21 percent increase in profits to $379 million despite a 3 percent drop in revenue. As of midday, Magna stock was still in the black despite a major down day on Wall Street.
CEO Swamy Kotagiri said trade uncertainty remains high, but Magna revised its annualized tariff exposure to $200 million from the $250 million estimated in the first quarter, David Kennedy wrote.
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Cooper-Standard, a key supplier of auto sealing and fluid handling products, narrowed its net loss down to $1.4 million from a whopping $76.2 million setback a year ago. Concerns remain, however.
"In our outlook for the rest of 2025, there is still a lot of uncertainty around the U.S. trade policy and the implementation of tariffs that may impact the auto industry globally," CEO Jeffrey Edwards said in a statement.
On Thursday, BorgWarner Inc. said earnings fell 30 percent to $224 million. But despite a costly restructuring, tariffs and other concerns, BorgWarner gave its investors a lucrative $108 million stock buyback along with a 55 percent dividend boost.
In another twist on supplier earnings, the usually buoyant profits at Toyota-affiliated Japanese suppliers such as Denso Corp. took noticeable dings in the latest quarter. Denso said tariffs took an $84 million bite out of its operating profit.
Speaking of Toyota Motor Corp., the automaker's 20 percent U.S. sales gain in July highlighted another strong retail month. Ford, Hyundai, Kia, Mazda and Honda also reported gains. The Hyundai-Kia results were also noteworthy with these affiliated Korean brands both posting record July results.
Finally, Ford Motor Co. posted its 94th U.S. recall so far this year — 380,000 2025 model-year vehicles in North America because of the potential loss of brake power.
That's it for today. Have a great weekend! Click here if you'd like to read this in your browser.
— Philip Nussel, online editor
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