TORONTO — Magna International Inc. reported its third-quarter profit fell compared with a year ago as auto production around the world fell due the shortage of semiconductor chips.
The auto parts maker, which keeps its books in U.S. dollars, says it earned US$11 million or four cents per diluted share for the quarter ended Sept. 30 compared with a profit of US$405 million or US$1.35 per diluted share in the same quarter last year.
Sales fell to US$7.92 billion compared with US$9.13 billion a year ago.
The company says vehicle production was significantly lower than anticipated largely due to the chip shortages which drove unpredictable customer production schedules, resulting in labour and other inefficiencies at its factories.
It also says its results were hurt by higher production costs, including freight and commodity costs, as well as a provision on engineering service contracts with the automotive unit of Evergrande.
On an adjusted basis, Magna says it earned 56 cents per diluted share, down from US$1.95 per diluted share a year ago. Analysts on average had expected an adjusted profit of 60 cents per share and US$7.89 billion in revenue, according to financial markets data firm Refinitiv.
Companies in this story: (TSX:MG)