Magna profits hit in third quarter as chip shortages continue to hamper auto production – National

Magna International Inc. reported that its third-quarter profit fell from a year ago as global auto production fell due to the shortage of semiconductor chips.

The auto parts maker, which keeps its books in US dollars, says it earned $ 11 million or four cents per diluted share for the quarter ended Sept. 30, compared to profit of $ 405 million or US $ 1.35 per diluted share in the same quarter. Last year.

Sales fell to US $ 7.92 billion from US $ 9.13 billion a year ago.

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The company says vehicle production has been significantly lower than expected, largely due to chip shortages that have resulted in unpredictable production schedules for customers, resulting in labor and other inefficiencies in its operations. factories.

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It also says its results were affected by higher production costs, including freight and freight costs, as well as a provision on engineering service contracts with Evergrande’s automotive unit.

On an adjusted basis, Magna says it earned 56 cents per diluted share, up from US $ 1.95 per diluted share a year ago. Analysts on average expected adjusted earnings of 60 cents per share and $ 7.89 billion in revenue, according to financial market data firm Refinitiv.

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