Canadian auto components maker Magna Worldwide on Thursday reported a 136% rise in quarterly revenue and raised its full-year income outlook, as sturdy demand for autos inspired its prospects to order extra physique buildings, chassis and powertrains.
Whereas a powerful pent-up demand and choice for personal autos through the COVID-19 disaster lifted gross sales at auto suppliers, a scarcity of semiconductor chips has prompted automakers to curtail manufacturing and forecast billions in losses.
Analysts anticipate a peak headwind to manufacturing as a result of chip crunch within the second quarter. Semiconductors are used extensively in vehicles, for every part from engine efficiency monitoring to parking sensors.
Magna’s income for the yr is now anticipated to be between $40.2 billion and $41.8 billion, up from a earlier forecast of $40.0 billion to $41.6 billion.
International gentle car manufacturing was up 18% within the first quarter pushed by an 87% enhance in China, the corporate stated in a press release.
Web revenue attributable to Magna rose to $615 million, or $2.03 per share, within the first quarter ended March 31, from $261 million, or 86 cents per share, a yr earlier.
Complete gross sales rose to $10.18 billion from $8.66 billion.
