Automotive technology supplier Aptiv forecast better-than-expected annual sales on Thursday, betting on a surge in demand for vehicles amid low interest rates.
The company reported net income of $147 million for the second quarter, compared with a net loss of $369 million a year earlier when global vehicle production dropped 45 percent.
Net sales nearly doubled to $3.81 billion.
Aptiv said it now expects 2021 revenue in the range of $16.1 billion to $16.4 billion -- up from a previously announced range of $15.1 billion to $15.7 billion.
Aptiv, whose customers include Stellantis, Volkswagen Group and General Motors, expects to supply more products including connectors, wiring assemblies and electrical power and signal distribution systems, at a time when the auto industry is grappling with a global semiconductor chip shortage.
The shortage has led to production delays in the auto industry and is expected to last into next year.
Demand for EVs is also expected to aid Aptiv, which also makes advanced driver assistance systems, vehicle computers and high-voltage cabling.
Sales in Aptiv's biggest business, the signal and power components unit, nearly doubled to $2.85 billion in the second quarter ended June 30.
The former Delphi Automotive changed the name of its automotive technology unit to Aptiv in 2017 following the spinoff of its powertrain division.
Aptiv ranks No. 19 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers estimated at $11.5 billion in 2020.
Automotive News contributed to this report.