Canada’s Magna International Inc. on Friday raised its full-year profit and sales outlook after it generated second-quarter net income of $339 million compared with a loss of $156 million during the same quarter last year.
Revenue during the quarter grew 17 percent to $11 billion.
The world’s fourth-largest auto supplier said there was strong demand for auto parts as supply chain constraints eased. Demand for parts has remained strong from automakers as they boost production to cater to consumers looking to snap up pickups, crossovers and SUVs.
Labor concerns, however, have remained a worry for the North American auto industry as the UAW and Canada’s Unifor unions both negotiate new contracts with the Detroit 3 automakers. Suppliers also are navigating higher costs of raw materials and other inflationary headwinds.
Magna expects 2023 revenue between $41.90 billion and $43.50 billion, compared with its previous forecast of $40.20 billion to $41.80 billion.
The company raised it adjusted annual income 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 during the second quarter, compared with analysts’ average estimate of $1.23 per share, according to Refinitiv data.
Magna, based near Toronto, ranks No. 4 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $37.8 billion in 2022.
Philip Nussel of Automotive News contributed to this report.