Magna International Inc. today announced that it has updated its 2021 outlook to reflect declines in anticipated 2021 light vehicle production, including 7% and 9% in North America and Europe, respectively, in each case relative to expected light vehicle production levels disclosed in our press release dated August 6, 2021. The lower expected light vehicle production is mainly due to the impacts of ongoing semiconductor chip shortages and the COVID-19 pandemic on the global automotive supply chain.
As a result of the lower assumed light vehicle production, as noted above, we now expect total sales for 2021 to be in the range of $35.4 to $36.4 billion, compared to $38.0 to $39.5 billion in our August outlook. Adjusted EBIT Margin(1) is now expected to be in the 5.1% to 5.4% range, compared to 7.0% to 7.4% in our August outlook primarily as a result of the decline in expected total sales, ongoing operational inefficiencies driven by unpredictable OEM production schedules, increased production costs, higher commodity costs and a provision on engineering service contracts with Evergrande.
(1) Adjusted EBIT Margin is the ratio of Adjusted EBIT to Total Sales
SOURCE: Magna
