(Reuters) -Magna International Inc on Friday slightly raised its full-year sales forecast as the Canadian auto parts maker expects light vehicle production to improve in its two biggest markets of North America and Europe.
The global auto industry is recovering from chip shortages and elevated prices for raw materials, freight and labor that had shackled efforts to meet customer demand.
Automakers are also revving up production to meet a strong order backlog and get enough vehicles to dealers on time
Magna’s customer General Motors recently lifted its full-year profit and cash flow forecasts as demand remained strong in spite of a dour economic outlook.
Revenue for the year is now expected to be between $40.2 billion and $41.8 billion, Magna said, up from its previous forecast of $39.6 billion to $41.2 billion.
On an adjusted basis, the company reported earnings per share of $1.11 for the first quarter, beating analysts’ average estimate of 83 cents .
Sales of $10.67 billion for the three months ended March 31 also topped expectations of $9.86 billion, according to Refinitiv data.
(Reporting by Raechel Thankam Job and Nathan Gomes; Editing by Sriraj Kalluvila)
