Canadian supplier Magna International Inc. said Friday it swung to a second-quarter net profit but cut its full-year revenue forecast, citing the ongoing chip shortage and resulting production disruptions.
The earnings report comes a day after Qualcomm topped Magna's bid for rival Swedish supplier Veoneer. Qualcomm's offer of $4.6 billion is an 18.4 percent premium to Magna's bid.
Magna reported net income of $424 million for the quarter, compared with a net loss of $647 million in the year-earlier period that was hit by the COVID-19 pandemic. Revenue more than doubled to $9 billion.
Revenue for the year is now expected to be between $38 billion and $39.5 billion, compared with a previous forecast of $40.2 billion to $41.8 billion.
Shares of Magna closed Friday's trading down less than 1 percent to $83.66.
Chip scarcity has hampered auto production around the world, bringing some assembly lines to a halt, with automakers warning the chip shortage could extend, even as vehicle demand booms in markets including the United States.
"The second quarter of 2021 included the production disruptions due to the ongoing global semiconductor chip shortage," Magna said in a statement.
The global semiconductor chip shortage will cost automakers $110 billion in revenue this year, according to consulting firm AlixPartners.
Supplier Aptiv said Thursday it expects higher costs due to pandemic-related supply chain problems to spill into the next year.(Reuters)