Canadian auto supplier Magna International expects global sales to hit as much as $45.5 billion in 2023, according to company slides posted before the company’s investor day on Tuesday.
The company said it expects sales to grow to a range of $43 billion to $45.5 billion in 2023, up from $32.6 billion in 2020, it said in slides posted online.
In its annual report issued last month, the supplier said it expects global light-vehicle production to grow six percent on average per year from 2020 through 2023.
“We expect our sales to grow 10-12 percent on average per year over that time frame,” the supplier said in the report.
However, that was before the global microchip shortage grabbed a hold of the industry, idling plants around the world for weeks at a time.
In that report, the supplier said that more than 90 percent of its 2023 sales were already booked, including:
- EV battery enclosures that contribute to the structure of the vehicle, protect high-voltage batteries and will debut on the new GMC Hummer EV and Ford F-150.
- ClearviewTM, a combination of camera and mirror technology that provides an enhanced field of view, which will hit the market on multiple vehicle models for a global automaker.
- FreeformTM, a surface seating trim that improves seat comfort with contoured surfaces which has been sourced with two global automakers.
Magna said in February that fourth-quarter net income surged 68 percent from a year earlier due in part to better-than-anticipated vehicle production.
The company reported net income of $738 million for the quarter ended Dec. 31, compared with $440 million during the same quarter in 2019. Revenue rose 12 percent from a year earlier to $10.57 billion.
Earnings and sales came in ahead of expectations, Magna said, thanks to vehicle production in the quarter being “better than anticipated,” as well as “higher than anticipated equity income” and “strong operating performance.” Global light-vehicle production rose four percent from the year-earlier quarter, according to the supplier.
Magna’s 2021 annual shareholders meeting is scheduled for May 6.
Magna ranks No. 3 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $39.43 billion in 2019.
Reuters and Greg Layson of Automotive News Canada contributed to this report.