UPDATE 1-Auto supplier Magna's sales beat as vehicle production rebounds

(Adds full-year outlook, industry background)

Aug 7 (Reuters) - Auto parts maker Magna International Inc on Friday reported better-than-expected quarterly revenue and forecast full-year sales above estimates, as auto sales in North America showed signs of a recovery from the COVID-19 pandemic.

Since hitting a bottom in April, North America auto sales have gradually recovered as economies have reopened after easing of government-enforced lockdowns.

A rebound in sales has seen major automakers scramble to ramp up production and boost weak inventories at dealerships, lifting sales at many auto parts makers including Canada's Magna.

Earlier this week, U.S. auto parts makers BorgWarner Inc also reported a smaller-than-expected second-quarter loss and raised its full-year free cash flow outlook.

Magna, which makes parts such as body structures, chassis and powertrain for customers including Ford Motor and Volkswagen, said it has been able to restart operations at its plants around the world.

Ontario-based Magna had pulled its full-year financial outlook in March. The company said on Friday it now expects 2020 sales between $30 billion and $32 billion, above analysts' estimate of $30.2 billion, according to IBES data from Refinitiv.

On an adjusted basis, Magna lost $1.71 per share in the quarter ended June 30, bigger than estimates of a loss of $1.57 per share.

Total sales plunged about 58% to $4.29 billion, but topped estimates of $4.10 billion. (Reporting by Ankit Ajmera in Bengaluru; Editing by Maju Samuel)

08/07/2020 9:31

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