What is going on with APTV?
Aptiv PLC (APTV) today announced an update to its full-year 2021 financial guidance to reflect a 7% decrease in global vehicle production rates from its previous guidance issued on August 5, 2021.
In its new estimate, the company stated that vehicles produced globally would amount to 79 million units - six million less than its previous 85 million figure.
Aptiv is a global auto company located in Dublin, Ireland. Shares of APTV increased 0.5% to $165.94 Monday morning.
What does this mean for Aptiv?
Aptiv blamed the production increase on a number of factors, including the continued impact of COVID-19 and the worldwide semiconductor shortage on the global automotive supply chain.
Although the company still expects revenue growth over the market to be consistent with the previously issued financial guidance of 10% for 2021, global vehicle production for the third quarter is currently expected to be approximately 18 million units, amounting to a decrease of 15% from the 21 million units expected at the time the previous full-year guidance was issued.
Global vehicle production for the fourth quarter is estimated to be approximately 20 million units, a decrease of approximately 13% from the 23 million units expected previously.
Based on Aptiv's new production numbers, the company revised 2021 sales to a range of $15.1 to $15.5 billion, down 6% from its previous range of $16.1 to $16.4 billion.
Full-year 2021 adjusted operating income margins are also expected to fall, now estimated to be in the range of 7.6% to 8.4% versus a previous range of 9.9% to 10.2%.
Aptiv will provide its third-quarter financial results on its third-quarter earnings call on November 4.
APTV has a Long-Term Technical Rank of 90. Find out what this means to you and get the rest of the rankings on APTV!
Aptiv's signal and power solutions segment supplies components and systems that make up a vehicle's electrical system backbone, including wiring assemblies and harnesses, connectors, electrical centers, and hybrid electrical systems. The advanced safety and user experience segment provides body controls, infotainment and connectivity systems, passive and active safety electronics, advanced driver-assist technologies, and displays, as well as the development of software for these systems. Aptiv's largest customer is General Motors at roughly 13% of revenue, including sales to GM's Shanghai joint venture. North America and Europe represented approximately 38% and 33% of total 2019 revenue, respectively.
