(Reuters) -Canadian auto parts maker Magna International said on Friday it expected the global automotive industry to recover in 2022 after being squeezed by semiconductor shortages, and projected an up to $4.2 billion rise in full-year revenue.
The company, which lost a bid to bolster its advanced driver assistance systems business through an acquisition of Sweden’s Veoneer Inc, is now looking to capitalize on soaring demand in the areas of electrification and autonomous cars.
“We expect improved operating results in 2022 as the industry recovers and production schedules normalize,” Chief Executive Officer Swamy Kotagiri said in a statement.
The Ontario-based company estimated full-year revenue of $38.8 billion to $40.4 billion, compared with the $36.24 billion it reported for 2021 on Friday. Analysts on average were expecting $39.47 billion, according to Refinitiv I/B/E/S data.
American peer Aptiv Plc last week said it expects the flow of semiconductors and other commodities to automakers to stabilize this year allowing for vehicle production to rise in the second half of the year.
Meanwhile, North American automakers are wrestling with Canadian truckers protesting anti-coronavirus mandate shutting the Ambassador Bridge, which serves as a supply route for Detroit’s carmakers, from Monday night.
General Motors Co and Chrysler parent Stellantis and Toyota Motor Corp – all customers of Magna – have canceled or scaled back shifts due to shortage of parts caused by the closure of the bridge.
Magna’s fourth-quarter results, however, were still dented by the chip shortage. The company reported a 13.7% drop in net sales to $9.11 billion but managed to beat analysts’ estimates of $8.95 billion.
Adjusted net income per share of $1.30 also topped estimates of 86 cents.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Sriraj Kalluvila)