Canadian auto parts maker Magna International Inc. (TSX:MG) has reported better-than-expected quarterly revenue and forecast full-year sales above estimates.
The better-than-expected results come as vehicle production in North America shows signs of a recovery from the COVID-19 pandemic.
The company said it lost about $5.5 billion in sales during the second quarter, as its customers shut production amid government-enforced lockdowns. Light-vehicle production in North America, Magna’s biggest market, tumbled 70% in the period.
But as economies reopen following easing of the lockdowns, North America auto sales have gradually recovered since bottoming in April, resulting in major automakers scrambling to ramp up production and boost weak inventories at dealerships.
That has lifted sales at several auto suppliers, including Magna, which makes parts such as body structures, chassis and powertrain for customers including Ford Motor Co. (NYSE:F) and Volkswagen AG.
