Auto parts supplier Aptiv Plc lowered on Monday its sales forecast for the financial year due to a semiconductor shortage that has forced automakers to curtail production.
The company now expects 2021 net sales in the range of $15.1 to $15.5 billion, down from its previous target of $16.1 billion to $16.4 billion.
A surge in COVID-19 cases in Asian countries that home auto factories and semiconductor plants has led to an acute chip shortage, impacting several small and major automotive players.
The Dublin, Ireland-based company also said it expects adjusted operating income margins between 7.6% and 8.4%, down from its previous outlook of 9.9% to 10.2%.
Aptiv added that it updated its outlook to reflect a 7% decrease in global vehicle production from 85 million units to 79 million units.
(Reporting by Shreyasee Raj; editing by Uttaresh.V) ((Shreyasee.Raj@thomsonreuters.com;))
