Aptiv posted lower first-quarter profit on Thursday, as surging raw material prices and a shortage of electrical components hindered the auto part supplier’s deliveries in the quarter.
Net income during the first quarter fell 74 percent to $73 million while revenue rose 4 percent to $4.2 billion, Aptiv said in a statement Thursday.
Aptiv, whose primary customers include Stellantis, Volkswagen and General Motors, supplies several key electrical components and software for modern vehicles that are used for everything from infotainment systems to integrated driver safety systems.
However, rising prices of raw materials and a global semiconductor shortage forced several automakers to slash their production cycles and in some cases even produce cars without certain features, thereby impacting Aptiv’s orders.
The company in its last quarter also warned that inflationary pressures would continue to have an impact on its operations.
Shares in Aptiv rose 2.2 percent to $112.88 in premarket trading.
Aptiv ranks No. 19 on the Automotive News list of the top 100 global suppliers with estimated worldwide sales to automakers of $11.5 billion in 2020.