Fourth-quarter web earnings at Canadian provider Magna Worldwide surged 68 % from a yr earlier due partially to better-than-anticipated automobile manufacturing.

The corporate reported web earnings of $738 million for the quarter ended Dec. 31, in contrast with $440 million throughout the identical quarter in 2019. Income rose 12 % from a yr earlier to $10.57 billion.

Earnings and gross sales got here in forward of expectations, Magna mentioned, due to automobile manufacturing within the quarter being “higher than anticipated,” in addition to “larger than anticipated fairness earnings” and “sturdy working efficiency.” World light-vehicle manufacturing rose 4 % from the year-earlier quarter, in line with the provider.

The outcomes mirror the relative resilience of new-vehicle demand in key markets, together with North America, amid the COVID-19 pandemic. It was the second straight quarter by which Magna reported a whole bunch of hundreds of thousands of {dollars} in web earnings, after posting a $647 million web loss within the second quarter amid world automotive manufacturing shutdowns.

“Total, I imagine our second-half outcomes show Magna’s resilience — we’re rising even stronger from the challenges we confronted in 2020,” Magna CEO Swamy Kotagiri mentioned in a press release.

For the yr, Magna reported web earnings of $757 million, down from $1.77 billion in 2019. Income fell 17 % to $32.6 billion, largely resulting from pandemic-related manufacturing shutdowns within the first half of 2020.

The provider mentioned it expects web earnings in 2021 to rise to between $2.1 billion and $2.3 billion on income of between $40 billion and $41.6 billion.

“Our outlook displays a product technique aligned with sustainability targets, additional development pushed by applied sciences that assist the automotive of the long run, margin growth and continued sturdy free money circulation era.” Kotagiri mentioned.

Magna’s upbeat forecast comes as an automotive chip scarcity is forcing automakers to trim manufacturing, with U.S. components maker Visteon projecting the crunch may crimp world auto manufacturing by 10 to fifteen % within the first half of 2021.

Fourth-quarter income in Magna’s physique exteriors and buildings unit gained 12 % from a yr earlier to $4.39 billion. The corporate mentioned the enterprise benefited partially from the launch of latest packages, together with the Ford Bronco Sport and Mustang Mach E. Income within the fourth quarter of 2019 was negatively impacted by that yr’s UAW strike towards Normal Motors.

Income in its energy and imaginative and prescient unit, which incorporates powertrains, electronics and mirrors, rose 17 % to $3.18 billion. That enterprise additionally benefited from the launch of latest packages, together with the Mercedes-Benz GLB and Land Rover Defender.

Seating income dipped 3 % in contrast with 2019 to $1.39 billion. The corporate pinned the decline on decrease manufacturing in “sure key packages,” together with Chrysler minivans.

Gross sales in Magna’s contract automobile meeting enterprise jumped 20 % from a yr earlier to $1.76 billion. It produced 34,500 automobiles within the fourth quarter of 2020, up 2 % from 33,900 items in 2019.

Magna ranks No. 3 on the 2020 Automotive Information Europe listing of the highest 100 world suppliers with worldwide gross sales to automakers of $39.43 billion in 2019.

Reuters contributed to this report.