Magna International Inc. - OMEGA

Delays in program launches or delays in the construction of new facilities required for program launches could reduce
our profitability
From time to time, we expand our production capacity through the construction of new manufacturing facilities. New facilities
are often required to accommodate the award of new business from our customers or to facilitate the introduction of new
manufacturing processes or technologies. However, the construction of new facilities involves a number of areas of operational
and financial risks. For example, construction delays associated with poor weather, labour disruptions, cost overruns, shortages
of construction materials and delays associated with the installation, testing and start-up of new production equipment or
manufacturing processes could reduce our profitability. Since many new facilities are constructed to accommodate the launch of
new customer production programs, the customer’s ability to launch a new vehicle program could negatively impact our customer
relationships as well as expose us to reimbursement claims by our customers for costs arising out of such delays and could
adversely affect our operations and future profitability.
Changes in laws and governmental regulations could have an adverse effect on our operations
A significant change in the current regulatory environment in which we carry on business could adversely affect our
operations. Our operations could be adversely impacted by significant changes in tariffs and duties imposed on our products,
particularly significant changes to the North American Free Trade Agreement.
We may be adversely affected by the environmental and safety regulations to which we are subject
We are subject to a wide range of environmental laws and regulations relating to air emissions, wastewater discharge, waste
management and storage of hazardous substances. We are also subject to environmental laws requiring investigation and cleanup
of environmental contamination and are in various stages of investigation and clean-up at our manufacturing facilities where
contamination has been alleged. Estimating environmental clean-up liabilities is complex and heavily dependent on the nature and
extent of historical information and physical data relating to the contaminated site, the complexity of the contamination, the
uncertainty of which remedy to apply and the outcome of discussions with regulatory authorities relating to the contamination.
In addition, these environmental laws and regulations are complex, change frequently and have tended to become more stringent
and expensive over time. Therefore, we may not have been, and in the future may not be, in complete compliance with all such
laws and regulations, and we may incur material costs or liabilities as a result of such laws and regulations significantly in excess
of amounts we have reserved.
ITEM 4. SELECTED CONSOLIDATED FINANCIAL DATA
The following selected income statement and financial position data have been derived from, and should be read in
conjunction with, our consolidated financial statements for the calendar years ended December 31, 2001, 2000 and 1999, which
are based on Canadian generally accepted accounting principles. Our consolidated statements of income and retained earnings
for the calendar years ended December 31, 2001, 2000 and 1999, our consolidated balance sheets as at December 31, 2001 and 2000
and the report of Ernst & Young LLP are contained in our Annual Report to Shareholders for the Year Ended December 31, 2001.
SELECTED CONSOLIDATED FINANCIAL DATA (1)
Calendar
Years ended December 31,
2001 2000 1999
(in millions of U.S. dollars, except per share figures)
Income Statement Data
Sales:
Automotive ................................................................................................... $10,507 $10,099 $9,260
Magna Entertainment Corp. ........................................................................ 519 414 187
Net income ........................................................................................................ 580 598 419
Earnings per Class A Subordinate Voting or Class B Share:
Basic ............................................................................................................. 6.57 7.04 4.94
Diluted .......................................................................................................... 6.20 6.44 4.65
Cash dividends paid per Class A Subordinate Voting or Class B Share 1.36 1.24 1.11
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