Canadian provider Magna Worldwide mentioned Friday that fourth-quarter web earnings and income fell as decrease car manufacturing brought on by the microchip scarcity hampered outcomes. Nonetheless, the corporate raised its quarterly money dividend by 5 % to 45 cents a share because it generated stable free money stream for 2021.

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

For the quarter Magna’s web earnings fell 37 % to $464 million, whereas adjusted earnings earlier than curiosity and taxes fell 54 % to $508 million. Income dropped 14 % to $9.1 billion as international car manufacturing was down 17 %.

For the total yr web earnings doubled to $1.5 billion on income of $36.2 billion, a rise of 11 %. Full-year adjusted EBIT rose 23 % to $2.1 billion.

“Though 2021 offered its share of challenges, we delivered above-market gross sales progress and generated stable free money stream, as we labored carefully with our clients and suppliers to reduce the impacts on car manufacturing,” CEO Swamy Kotagiri mentioned 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 methods enterprise by way of an acquisition of Sweden’s Veoneer, is now seeking to capitalize on hovering demand within the areas of electrification and autonomous automobiles.

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

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

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 govt, 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.