Magna CEO says Bridge blocks dual semiconductor supply problems

Canadian auto parts manufacturer Magna International Inc. said it is starting to feel the impact of the Ambassador Bridge blockade on its business.


Magna CEO Seetarama Kotagiri told a conference call to discuss the company’s latest financial results on Friday that some customers had had to shut down operations or cut back on claims. production due to the bridge closure.

During the call, he also said production for 2022 will continue to be hampered by ongoing semiconductor supply constraints.

Earlier on Friday, Magna reported that its fourth-quarter profit and sales fell from a year ago.

Read more:

Ambassador Bridge is blocked: Honda Canada stops production at the Ontario car factory

The company also increased its dividend. Magna, which keeps its books in US dollars, said it will now pay a quarterly dividend of 45 cents per share, up from 43 cents per share.

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The increased payment to shareholders comes as it indicates net income due to Magna of US$464 million or US$1.54 per diluted share for the quarter ended December 31. Results compare to a profit of $738 million or $2.45 per diluted share for the last three months of 2020.

Total revenue for the quarter came in at $9.11 billion, down from $10.57 billion a year earlier, as Magna said global light vehicle production fell 17%, due to a semiconductor chip shortage that the industry had to contend with. face throughout 2021.

On an adjusted basis, Magna said it earned $1.30 per diluted share in its most recent quarter compared with adjusted profit of $2.83 per share in the fourth quarter. 2020.

Analysts had expected adjusted profit of 85 cents per share, according to financial market data firm Refinitiv.

Click to play video:'Ambassador Bridge protests cause economic damage'

Ambassador Bridge protested causing economic damage

Ambassador Bridge protested causing economic damage

© 2022 Canadian Press Magna CEO says Bridge blocks dual semiconductor supply problems

Russell Falcon

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