Canadian provider Magna Worldwide Inc. stated Friday it swung to a second-quarter web revenue however lower its full-year income forecast, citing the ongoing chip scarcity and ensuing manufacturing disruptions.

The earnings report comes a day after Qualcomm topped Magna’s bid for rival Swedish provider Veoneer. Qualcomm’s provide of $4.6 billion (all figures in USD)The worldwide semiconductor chip scarcity will price automakers $110 billion in income this yr, based on consulting agency AlixPartners.

Provider Aptiv stated Thursday it expects greater prices as a consequence of pandemic-related provide chain issues to spill into the subsequent yr is an 18.4 per cent premium to Magna’s bid.

Magna reported web revenue of $424 million for the quarter, in contrast with a web lack of $647 million within the year-earlier interval that was hit by the COVID-19 pandemic. Income greater than doubled to $9 billion.

Income for the yr is now anticipated to be between $38 billion and $39.5 billion, in contrast with a earlier forecast of $40.2 billion to $41.8 billion.

Shares of Magna had been down a fraction to $84.15 in noon buying and selling Friday.

Chip shortage has hampered auto manufacturing world wide, bringing some meeting strains to a halt, with automakers warning the chip scarcity may lengthen, whilst car demand booms in markets together with the USA.

“The second quarter of 2021 included the manufacturing disruptions because of the ongoing world semiconductor chip scarcity,” Magna stated in a press release.

The worldwide semiconductor chip scarcity will price automakers $110 billion in income this yr, based on consulting agency AlixPartners.

Provider Aptiv stated Thursday it expects greater prices as a consequence of pandemic-related provide chain issues to spill into the subsequent yr.