(Aurora, Ont.) The operations of Canadian auto parts maker Magna International are beginning to feel the impact of protests disrupting traffic on the Ambassador Bridge.
Posted at 11:53 a.m.
In a conference call about the company’s latest financial results, Magna’s chief executive said Friday that some of his customers had to cut production due to the bridge closure.
Seetarama Kotagiri added that 2022 production would continue to be impacted by the shortage of semiconductor chips.
Earlier Friday, Magna posted fourth-quarter profit and revenue down from the same period a year earlier.
The company also increased its dividend. Magna will now pay a quarterly dividend of 45 US cents per share, compared to the previous 43 US cents per share.
Net profit attributable to Magna shareholders was US$464 million, or US$1.54 per share, for the three months ended Dec. 31. By comparison, the company had made a profit of US$738 million, or US$2.45 per share, in the last three months of 2020.
Quarterly sales totaled US9.11 billion, down from US10.57 billion a year earlier. Light vehicle production fell 17%, Magna said, which it attributed to the shortage of semiconductor chips the industry faced throughout 2021.
On an adjusted basis, Magna posted a profit of US$1.30 per share in the most recent quarter, compared to US$2.83 per share in the fourth quarter of 2020.
Analysts on average had expected an adjusted profit of 85 cents per share, according to forecasts compiled by financial data firm Refinitiv.