* Adj profit of $1.31 misses est of $1.36
* Profit misses on higher costs
* Shares down 5.7 pct in Toronto
(Adds details, shares)
Feb 24 Auto parts maker Magna International
Inc's profit missed estimates for the first time
in five quarters, and the Canadian company warned that a
proposed border tax by the United States could hurt the
The company's shares were down 5.7 percent at C$55.47 on the
Toronto Stock Exchange on Friday, while its U.S-listed stock was
down 5.8 percent at $42.55.
"Any border adjustment tax I think would be negative for the
whole industry," a company executive said on a post-earnings
U.S. House Republicans are pushing for the border adjustment
tax as a way to boost U.S. manufacturing and pay for corporate
The plan, which would essentially tax imports but not
exports, faces opposition from retailers, oil refiners and
automakers who say it could raise prices for American consumers.
In an exclusive interview to Reuters on Thursday, U.S.
President Donald Trump spoke positively about the border
Magna, primarily an auto parts supplier, also assembles cars
under contract from motor vehicle manufacturers. General Motors
Co, Volkswagen AG, BMW and Ford
Motor Co are among its biggest customers.
Also, Magna's Mexican operations account for 14 percent of
the company's total sales.
This could be hit by Trump's move to renegotiate the North
American Free Trade Agreement, with a focus on cutting United
States' large trade deficit with Mexico.
"The continued growth of protectionist sentiments and
implementation of measures which impede the free movement of
goods, services, people and capital could have a material
adverse effect on our operations, profitability or results of
operations," the company said in a statement.
Aurora, Ontario-based Magna also raised its quarterly
dividend on Friday to 27.5 cents from 25 cents.
Magna said cost of goods sold jumped 7.7 percent to $7.90
billion in the fourth quarter ended Dec. 31.
Vehicle assembly sales in the quarter fell about 30 percent
to $439 million.
The company said it expects total 2017 sales to be between
$36.0 billion-$37.7 billion, compared with sales of $36.45
billion in 2016.
Net income attributable to Magna rose to $478 million, or
$1.24 per share, in the fourth quarter, from $476 million, or
$1.17 per share, a year earlier.
Excluding items, the company earned $1.31 per share, missing
the average analysts' estimate of $1.36, according to Thomson
Magna's total sales rose 8 percent to $9.25 billion, beating
estimates of $9.23 billion.
(Reporting by Vishaka George in Bengaluru; Editing by Savio
D'Souza and Shounak Dasgupta)