Magna International (MGA, MG.TO) said Friday it will implement cost-cutting measures to reduce the likely impact of US tariffs.

In a statement, Magna CEO Swamy Kotagiri said the company was "actively advancing several initiatives including operational excellence, restructuring, commercial recoveries, and reduced capital and engineering spending to mitigate the impact of tariffs."

On a conference call with analysts, Kotagiri said 75% to 80% of its parts crossing the border were already compliant with terms of the US Mexico and Canada Agreement adopted in 2020 and he estimated the company's 2025 annualized direct tariff impact at about $250 million, according to a FactSet transcript.

On Friday, the Canadian auto parts maker reported Q1 adjusted earnings of $0.78 per diluted share, down from $1.08 a year earlier and lagging expectations of analysts polled by FactSet looking for an $0.85 profit.

Sales for the quarter ended March 31 declined 8.2% from a year earlier to $10.07 billion but beat the consensus view expecting $9.65 billion.

Magna also raised its 2025 revenue forecast to $40.0 billion and $41.6 billion, from $38.6 billion to $40.2 billion previously, citing changes in foreign currency translations offset slightly by "modest" margin reductions.

Analysts are expecting $39.23 billion in 2025 sales.

Kotagiri said the company would focus on generating long-term free cash flow to support "profitable growth and drive compelling capital return to shareholders."

Magna shares recently were down about 3% in recent trading.

Price: 34.01, Change: -1.00, Percent Change: -2.86