Magna International Inc.'s first-quarter net income fell 41 percent from a year earlier as the microchip shortage and the impact of the war in Ukraine and inflation weighed down the Canadian supplier giant's results.
Magna reported Friday that net income fell to $364 million in the quarter ended March 31, compared with $615 million in the same period a year earlier.
Quarterly revenue fell 5.3 percent to $9.64 billion, down from $10.18 billion in the year-earlier period, with a significant decrease in European volumes offsetting sales gains in North America and Asia.
Magna CEO Swamy Kotagiri said in a statement that the company's results came in "ahead of our expectations," but he cautioned that geopolitical uncertainty, inflation and COVID-19 lockdowns in China will result in lower global vehicle production than previously thought.
"While these factors negatively impact our outlook, we remain committed to managing through short-term industry adversity and investing for our future," he said.