Magna cuts full year sales forecast due to chip shortage

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Aug 6 - Magna International Inc, whose offer to buy Swedish rival Veoneer was trumped by chipmaker Qualcomm, cut its full year sales forecast citing a slowdown in automobile production due to a semiconductor shortage plaguing the sector.

The shortage has hampered automobile production around the world, bringing some assembly lines to a halt. Automakers across the globe warned that the chip shortage could expand, even as auto demand booms in markets such as the United States.

The second quarter of 2021 included the production disruptions due to the ongoing global semiconductor chip shortage, Magna said in a statement.

Chipmaker Magna International Inc said on Thursday it had offered to buy Veoneer Inc for $4.6 billion, an 18.4% premium to a bid proposed by Qualcomm Inc in July by Canada's Qualcomm Group after the board of Veoneer came back.

Magna's revenue for the year is now expected to be between $38 billion and $39.5 billion, compared to a 2014 forecast of $40.2 billion to $41.8 billion.

Magna Net income was $424 million, or $1.40 per share, in the quarter ended June 30, from a loss of $647 million, or $2.17 per share, a year earlier.

Total sales more than doubled to $9.03 billion.