(Reuters) – Aptiv Plc posted lower first-quarter profit on Thursday, as surging raw material prices and a shortage of electrical components hindered the auto part supplier’s deliveries in the quarter.
Aptiv, whose primary customers include Stellantis NV, Volkswagen AG and General Motors Co, supplies several key electrical components and software for modern vehicles that are used for everything from infotainment systems to integrated driver safety systems.
However, rising prices of raw materials and a global semiconductor shortage forced several automakers to slash their production cycles and in some cases even produce cars without certain features, thereby impacting Aptiv’s orders.
The company in its last quarter also warned that inflationary pressures would continue to have an impact on its operations.
Net income attributable to ordinary shareholders fell to $73 million, or 27 cents per share, for the three months ended March 31, from $279 million, or $1.03 cents per share, a year earlier.
(Reporting by Nathan Gomes in Bengaluru; Editing by Rashmi Aich)
