Toronto, Ontario — In this week’s Tuesday Ticker report, Ford drops more of its Rivian shares; Magna International suffers share dips after its disappointing Q4 results and IAA Inc. announces Q4 and full-year results for 2022.
Ford’s financials
Ford Motor Company has sold more of its stake in EV maker Rivian, brining the OEM’s total stake in the company to 1.15 percent.
Ford originally held a 12 percent stake on an initial $500 million investment. At the end of 2021, the automaker held an 11.4 percent stake. In 2022, it cut its investment by US$7.4 billion.
Rivian lost approximately 82 percent of its value last year as it suffered from ever-decreasing production levels and other supply chain issues. It missed its production target for 2022 by 25,000 units.
Last week, Reuters reported that Rivian was amid plans to lay off six percent of staff.
As of 2 p.m. EST Monday, shares of Rivian were US$18.97 per share, up 0.6 percent from Friday’s close.
Magna’s margins
Magna International shares dropped more than 17 percent between last Thursday afternoon and Monday morning after the company delivered lower-than-expected results for 2022.
The company said it earned US$95 million (33 cents per share) in Q4 2022, down from US$464 million (US$1.54 per diluted share) from Q4 2021.
Analysts had expected profits of US$1.02 per share, according to Refinitiv.
Shares dropped 15 percent in the immediate hours following the news on Friday. As of Monday afternoon at 2 p.m., shares of Magna are trading at $75.07 per share; up 4.26 percent from Monday morning’s open.
Total sales for 2022, however, were US$9.57 billion, up from last year’s US$9.11 billion.
IAA’s insights
Auction provider IAA Inc. announced its preliminary financial results for both the full year and Q4 of 2022.
The company reported a net income between US$288 million and $291 million for the full fiscal year and net income between $74 million and $77 million in Q4 2022.
Ritchie Bros., a Vancouver-based auctioneer in the process of acquiring IAA Inc., also announced its preliminary financial results. Total revenues for 2022 are estimated at US$1.7 billion, while revenue for Q4 2022 was reported at approx. US$444 million.
