Components of EV battery trays are prepared to be welded at Magna's Heart Lake production facility in Brampton, Ont., in 2023.Christopher Katsarov/The Globe and Mail
Magna International MG-T raised its annual sales forecast on Friday, as the Canadian auto parts supplier leans on demand for its vehicle assembly business and safety systems.
The results follow peers Aptiv APTV-N and BorgWarner BWA-N warning of production snarls from a supply crunch related to Dutch firm Nexperia and a fire at a critical aluminum supplier.
Magna, which counts Ford, General Motors, Stellantis and other European automakers as customers, expects its annual sales to be between US$41.1-billion ($57.6-billion) and US$42.1-billion ($59-billion), up from its prior range of US$40.4-billion ($56.6-billion) to US$42.0-billion ($58.8-billion).
U.S.-listed shares of the company were up about 1 per cent in premarket trade.
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Steady demand for advanced driver-aid safety technology and auto parts from automakers ramping up production has helped auto parts suppliers amid the disruptions caused by U.S. tariffs.
Magna, which has factories in North America and Europe, assembles units for automakers at its complete vehicle manufacturing unit.
Its quarterly sales rose 1.7 per cent to US$10.5-billion ($14.7-billion) from a year earlier. Analysts on average expected the company to report sales of US$10.14-billion ($14.2-billion), according to data compiled by LSEG.
On an adjusted basis, Magna earned US$1.33 ($1.86) per share for the quarter through September, above estimates of US$1.21 ($1.70).