Blue chip tier one auto supplier, Magna International announced a 136% jump in quarterly profit while also boosting its year end revenue forecast. Low supplies coupled with huge demand caused Magna customers, most of the large OEMs, to increase orders for car bodies, chassis, powertrains and painted interior and exterior components.
Most automakers are feeling the pinch due to the shortage of semiconductor chips, used in multiple automotive systems. Many are predicting losses due to the shortage which has slowed or halted production of many of the most popular passenger vehicles.
Magna has leveraged the pent-up demand to stay busy producing critical components despite the semiconductor shortage and the many challenges presented by the Covid crisis over the last year. With an 18% global increase in light vehicle production, and a drastically higher increase in China, Magna’s annual revenue is now expected to exceed $41 billion. Year to year, first quarter total sales rose from $8.66 billion to $10.18 billion