Aptiv Cuts FY21 Guidance Citing COVID-19 Impact, Chip Shortage

Aptiv PLC APTV has cut its FY2021 sales guidance to $15.1 billion - $15.5 billion (prior view $16.1 billion - $16.4 billion), versus the consensus of $15.83 billion.
The company has updated the outlook to reflect a 7% decrease in global vehicle production rates, from 85 million to 79 million units, resulting from several factors, including the continued impacts of the COVID-19 pandemic and the worldwide semiconductor shortage on the global automotive supply chain.
Aptiv expects FY21 adjusted operating income margins of 7.6% - 8.4% from the prior view of 9.9% - 10.2%, reflecting impacts of operating inefficiencies, increased supply chain disruption costs, and other uncertainties.
The company expects global vehicle production to be about 18 million units for the third quarter, down 15% from the previously expected 21 million units.
Aptiv expects global vehicle production to be approximately 20 million units for the fourth quarter, down 13% from the 23 million units expected previously.
The company will release its third-quarter financial results on November 4, 2021.
Price Action: APTV shares are trading lower by 0.31% at $164.6 on the last check Monday.

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