Magna forecasts 2024 profit below estimates as EV makers cut production, ET Auto
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Canadian auto parts supplier Magna International forecast its 2024 profit below estimates on Friday, as the industry navigates challenges originating from higher raw material prices and cooling demand for electric vehicles (EV).
Auto parts suppliers have been hit by a slowdown in demand for EV parts, as automakers scale back investments and shift focus to higher-margin hybrid and gas-powered vehicles.
The Aurora, Ontario-based company expects full-year profit in the range of USD 1.6 billion to USD 1.80 billion. Analysts on average were expecting a profit of USD 1.90 billion, according to LSEG data.
On Thursday, peer BorgWarner also forecast its 2024 profit and revenue below street expectations, on cooling demand for their parts as automakers cut back on their EV ambitions to protect margins.
On an adjusted basis, the company earned a profit of USD 1.33 per share for the fourth quarter ended December 31, missing analysts’ expectations of USD 1.48 per share.
Fourth-quarter sales rose 9.2% to USD 10.45 billion, in line with a Wall Street consensus.
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