Auto parts supplier Aptiv Plc lowered its full-year revenue and profit forecast on Thursday, as a semiconductor shortage exacerbated by COVID-related lockdowns in China and rising costs weigh on global vehicle production.
The conflict in eastern Europe has exacerbated input costs including those for freight, energy, commodity and labor for auto firms, which were already reeling from supply snarls due to China’s lockdowns.
The company, in June, had warned that its revenue would be in the bottom half of its outlook range.
Aptiv is known for its advanced driver assistance systems, vehicle computers and high-voltage cabling for automobiles, and counts Stellantis NV, Volkswagen AG and General Motors Co among its customers.
It now expects revenue for the year between $17.0 billion and $17.3 billion, down from its previous outlook of $17.75 billion to $18.15 billion.
Aptiv now expects full-year adjusted net income between $3.05 and $3.55 per share, down from its previous forecast of $3.90 and $4.80 per share.