(Photo: Magna International)

AURORA, Ont. Magna International Inc. is reporting a US$415 million profit and record-high second-quarter sales, which were up 16 per cent from the same time last year and well above analyst estimates.

We achieved this sales increase in a period when vehicle production increased seven per cent in North America and declined one per cent in Europe, both relative to the second quarter of 2012, the company said Friday.

The Canadian auto parts company, which reports in U.S. currency, said its net income amounted to $1.78 per diluted share, in the second quarter, compared to $349 million, or $1.48 per share in the same quarter last year.

The Aurora, Ont.-based Magna, which is one of the worlds biggest parts suppliers to automakers, says currently expects between $33.3 billion and $34.7 billion of sales in 2013. The range is about $700 million higher than Magnas outlook in May when its first-quarter results were issued.

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During the three months ended June 30, the companys sales rose to $8.96 billion in the three months ended June 30, up from $7.72 billion a year earlier and a Magna record for the second quarter.

Sales were more than $167 million above a Thomson Reuters composite analyst estimate of $8.795 billion while earnings were above estimates of $1.70 per share of net income and $1.63 per share of adjusted earnings.

Apart from the improved operational results, Magnas earnings per share were increased by a share buyback program that reduced the average number of shares outstanding during the quarter.

The company credits a seven per cent rise in North American vehicle production during the three-month period while European production dipped one per cent.

Magna says complete vehicle assembly sales increased 23 per cent to $796 million in the quarter while complete vehicle assembly volumes increased 17 per cent to approximately 39,000 units.

On Thursday, the Magna board of directors declared a quarterly dividend of 32 cents payable on Sept. 16.

Magna has 123,000 employees at 314 manufacturing operations and 89 product development, engineering and sales centres in 29 countries.