Canada’s Magna International Inc trimmed its sales forecast for the year on Thursday, as it expects a drop in vehicle production in North America and Europe due to weak global demand and the impact of U.S.-China trade tensions.
The North American automotive industry has been grappling with the fallout of the trade war, with several automakers already warning of higher costs as tariffs add billions of dollars in costs to vehicle production and assembly.
The auto parts maker told Reuters it now expects total sales of $38.9 billion to $41.1 billion, compared with its previous estimate of $39.1 billion to $41.3 billion.
The company – which assembles cars for BMW, Daimler and Jaguar Land Rover – also cut its forecast for light vehicle production volume in North America to 16.6 million from 16.7 million. For Europe, it was trimmed to 21.4 million from 21.5 million.
Net income attributable to Magna fell to $452 million, or $1.42 per share, in the second quarter ended June 30 from $626 million, or $1.77 per share, a year earlier.
Excluding items, the company earned $1.59 per share, while analyst were expecting $1.53, according to IBES Refintiv data.
Total sales fell to $10.13 billion from $10.28 billion.
(Reuters)
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