© Reuters. SUBMIT PICTURE: Magna logo design is throughout Munich Automobile Program, IAA Movement 2021 in Munich, Germany, September 8, 2021. REUTERS/Wolfgang Rattay
( Reuters) – Canadian automobile parts provider Magna International (NYSE:-RRB- raised its 2023 earnings projection on Friday, however flagged an effect from the United Automobile Employee (UAW) union strike in The United States and Canada.
Providers have actually gained from an uptick in need for their automobile parts, software application and tech as automobile makers around the world rush to press out more secure automobiles with sophisticated driver-aid systems and greater performances.
However experts anticipate automobile parts makers to feel the heat after the UAW’s near six-week long strike shut operations at the Detroit 3 car manufacturers– General Motors (NYSE:-RRB-, Ford Motor (NYSE:-RRB- and Stellantis NV (NYSE:-RRB-.
Magna, which has a direct exposure of 13% -15% to GM, Ford and Chrysler-parent Stellantis, stated its outlook showed an effect from the UAW strikes at particular consumers, however did not supply additional information.
Peer Aptiv (NYSE:-RRB- likewise cautioned of a $180 million struck to its full-year sales from the UAW strikes, even as it topped quarterly quotes on Thursday.
Magna anticipates full-year adjusted earnings to be in between $1.55 billion and $1.65 billion, compared to its previous projection series of $1.4 billion to $1.6 billion.
The business likewise raised its projection presumption for light automobile production in Europe and China however kept its previous presumption for The United States and Canada.
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