Magna profit flies in Q3

Frank Stronach has resigned from the board of directors of Magna International (TSX: MG), the auto parts giant he founded in 1957.

Magna announced his departure on Thursday when the company released its earnings nearly quadruple in the third quarter after a reassessment of its E-Car division.

Mr. Stronach explained by way of communicating that is increasingly involved in activities outside the automotive industry, since he renounces control of Magna there two years.

Earlier this year, he has founded a political party that prone a reform of the euro and the introduction of a flat tax in Austria. He says he does not want his political activities are combined with its business activities.

Under an agreement with the shareholders of Magna, Stronach has relinquished control of the company to a position of consultant. He pockets a percentage of the profits of the company.

Magna displays Thursday a profit of U.S. $ 390 million or U.S. $ 1.66 in the third quarter, compared to U.S. $ 102 million or 42 cents per share last year.

Its sales totaled U.S. $ 7.41 billion, against U.S. $ 6.97 billion a year ago.

His performance was inflated by the revaluation of its E-Car division. Magna buys the Stronach Group, in August, 23 percent of the company it did not own for $ 75 million. This change has contributed $ 125 million or 53 cents per share quarterly performance Magna.