Magna swings to Q2 profit, cuts revenue outlook due to chip shortage

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.

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