By Adriano Marchese
Linamar Corp. said Friday that global supply-chain issues and semiconductor shortages, among other challenges, are expected weigh on the company performance and production in the second quarter, leaving a gap between supply and market demand.
The Canadian auto-parts manufacturing company said light vehicle production is expected to fall more than previously anticipated in the second quarter at 18.98 million units, a decrease of 1.65 million units compared with the prior forecast.
The company expects the North America region to see the most decline in production followed by Asia Pacific as the continued semiconductor shortage continues to slow down production.
Additionally, the forecast for the full year was also revised down by 1.01 million units, which the company said suggests some, but not all, second-quarter volume cuts will be recovered in the period.
In its industrial segment, Linamar said that both its agriculture and access market businesses are constrained in their ability to meet market demand due to supply chain issues that include commodity prices, logistic costs and product availability.
These are affecting revenue and margins negatively, particularly in its industrial segment, it said.
Write to Adriano Marchese at [email protected]