Canadian auto parts maker Magna International Inc MG-T cut its annual sales forecast on Friday, as supply chain snags and higher utility costs keep vehicle production under pressure.
Europe’s energy crisis has exacerbated power and logistics costs for auto firms, while coronavirus-related restrictions in China have disrupted production.
Automakers have flagged that inflation is beginning to take a toll on their balance sheets as they struggle with parts shortage, escalating raw material and energy costs, and soaring inflation.
Magna now sees its annual sales in the range of $37.4-billion and $38.4-billion, compared with its prior forecast of $37.6-billion and $39.2-billion.
The Aurora, Canada-based manufacturer posted a net income of $289-million, or $1 per share, in the third quarter ended Sept. 30, compared with $11-million, or $0.04 share, a year earlier.