Magna International Inc on Friday slightly raised its full-year sales forecast as the Canadian auto parts maker expects light vehicle production to improve in its two biggest markets of North America and Europe.
The global auto industry is recovering from chip shortages and elevated prices for raw materials, freight and labor that had shackled efforts to meet customer demand.
Automakers are also revving up production to meet a strong order backlog and get enough vehicles to dealers on time
Magna’s customer General Motors recently lifted its full-year profit and cash flow forecasts as demand remained strong in spite of a dour economic outlook.
Revenue for the year is now expected to be between USD 40.2 billion and USD 41.8 billion, Magna said, up from its previous forecast of USD 39.6 billion to USD 41.2 billion.
On an adjusted basis, the company reported earnings per share of USD 1.11 for the first quarter, beating analysts’ average estimate of 83 cents .
Sales of USD 10.67 billion for the three months ended March 31 also topped expectations of USD 9.86 billion, according to Refinitiv data.
