Canadian auto provider Magna Worldwide Inc. stated Friday that fourth-quarter internet earnings and income fell as decrease automobile manufacturing attributable to the microchip scarcity hampered outcomes. Nonetheless, the corporate raised its quarterly money dividend by 5 per cent to 45 cents a share because it generated strong free money circulation for 2021.

North America’s largest auto provider additionally stated Board Chair William L. Younger, 66, will retire on the finish of the present time period. The board has chosen Robert F. MacLellan, 66, presently audit committee chair, to succeed Younger following Magna’s annual assembly on Might 3.

For the quarter Magna’s internet earnings fell 37 per cent to $464 million (all figures USD), whereas adjusted earnings earlier than curiosity and taxes fell 54 per cent to $508 million. Income dropped 14 per cent to $9.1 billion as international automobile manufacturing was down 17 per cent.

For the complete 12 months internet earnings doubled to $1.5 billion on income of $36.2 billion, a rise of 11 per cent. Full-year adjusted EBIT rose 23 per cent to $2.1 billion.

“Though 2021 offered its share of challenges, we delivered above-market gross sales development and generated strong free money circulation, as we labored intently with our prospects and suppliers to reduce the impacts on automobile manufacturing,” CEO Swamy Kotagiri stated in a press release.

In 2021, Magna generated money from operations of $2.9 billion

The corporate, which misplaced a bid to bolster its superior driver help techniques enterprise by means of an acquisition of Sweden’s Veoneer Inc., is now trying to capitalize on hovering demand within the areas of electrification and autonomous vehicles.

“We anticipate improved working ends in 2022 because the business recovers and manufacturing schedules normalize,” Kotagiri stated within the assertion.

The Ontario-based firm estimates 2022 internet earnings of  $1.7 billion $1.9 billion and income of $38.8 billion to $40.4 billion.

In the meantime, North American automakers and suppliers are wrestling with Canadian demonstrators protesting anti-coronavirus mandates and different points shutting the Ambassador Bridge between Windsor, On.t, and Detroit, which serves as a provide route for Detroit’s carmakers, from Monday evening.

Magna spokeswoman Tracy Fuerst stated a “handful” of the provider’s crops within the U.S. and Canada have began to regulate or cut back shifts to match automakers’ schedules. For instance, she pointed to a just-in-time seating facility within the U.S. that’s idled at present as a result of the meeting plant it provides is shut down.

On an earnings name with analysts Friday, Kotagiri stated the corporate was “beginning to see some preliminary impression” from the blockade as its automaker prospects reduce manufacturing plans.

“We’re watching it intently, and we hope it will get resolved shortly,” he stated.

Board modifications

Along with MacLellan succeeding Younger as board chair, the corporate introduced different modifications to the board:

• Peter G. Bowie, 74, will succeed MacLellan as audit committee chair.
• Thomas Weber, 67, previously a member of Magna’s Expertise Advisory Council and a highly-respected former Daimler government, has been appointed to the board as a non-independent, non-executive director.
• Cindy Niekamp 61, has additionally communicated her intention to retire on the finish of her present time period in Might.

Reuters contributed to this report.