Canada’s Magna Worldwide Inc. on Friday raised its full-year revenue and gross sales outlook after it generated second-quarter internet revenue of $339 million (all figures in USD) in contrast with a lack of $156 million throughout the identical quarter final yr.

Income through the quarter grew 17 per cent to $11 billion.

The world’s fourth-largest auto provider mentioned there was sturdy demand for auto components as provide chain constraints eased. Demand for components has remained sturdy from automakers as they increase manufacturing to cater to shoppers seeking to snap up pickups, crossovers and SUVs.

Labor considerations, nonetheless, have remained a fear for the North American auto trade because the UAW and Canada’s Unifor unions each negotiate new contracts with the Detroit 3 automakers. Suppliers are also navigating greater prices of uncooked supplies and different inflationary headwinds.

Magna expects 2023 income between $41.90 billion and $43.50 billion, in contrast with its earlier forecast of $40.20 billion to $41.80 billion.

The corporate raised it adjusted annual revenue outlook to between $1.40 billion and $1.60 billion, from $1.30 billion to $1.50 billion forecast earlier.

Magna reported adjusted earnings per share of $1.50 through the second quarter, in contrast with analysts’ common estimate of $1.23 per share, in accordance with Refinitiv information.

Magna, primarily based close to Toronto, ranks No. 4 on the Automotive Information checklist of the highest 100 international suppliers with worldwide gross sales to automakers of $37.8 billion in 2022.

Philip Nussel of Automotive Information contributed to this report.