Ambassador Bridge closure starting to impact the auto parts maker’s operations
AURORA, ONT. (CP) – Canadian auto parts manufacturer Magna International Inc. says it is beginning to feel the impact of the Ambassador Bridge blockades on its business.
Magna CEO Seetarama Kotagiri told a conference call to discuss the company’s latest financial results Friday that some customers have had to idle or cut production requirements as a result of the bridge closure.
On the call, he also said production for 2022 will continue to be hampered by the ongoing semiconductor supply constraints.
Earlier Friday, Magna reported that its fourth-quarter profit and sales fell compared with a year ago.
The company also raised its dividend. Magna, which keeps its books in U.S. dollars, said it will now pay a quarterly dividend of 45 cents per share, up from 43 cents per share.
The increased payment to shareholders came as it said it earned net income attributable to Magna of US$464 million or US$1.54 per diluted share for the quarter ended Dec. 31. The result compared with a profit of US$738 million or $2.45 per diluted share in the last three months of 2020.
Sales for the quarter totalled US$9.11 billion, down from $10.57 billion a year earlier, as Magna said global light vehicle production fell 17 per cent, driven by the semiconductor chip shortages the industry faced throughout 2021.
On an adjusted basis, Magna said it earned US$1.30 per diluted share in its most recent quarter compared with an adjusted profit of 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 financial markets data firm Refinitiv.