Aptiv updates 2021 financial outlook as output forecast falls

Aptiv today announced an update to its full year 2021 financial guidance to reflect a 7% decrease in global vehicle production rates, from 85m to 79m units, at the time the previous full year 2021 guidance was issued on August 5, 2021, resulting from various factors, including the continued impacts of the COVID-19 pandemic and the worldwide semiconductor shortage on the global automotive supply chain.

Although the company still expects revenue growth over 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 18m units, or a decrease of approximately 15% from the 21m expected at the time the previous full year guidance was issued.

Global vehicle production for the fourth quarter is currently expected to be approximately 20m units, or a decrease of approximately 13% from the 23m units expected previously.

Reflecting these new assumptions for global vehicle production, the supplier now sees full year 2021 sales in the range of US$15.1bn to $15.5bn, down 6% at the midpoint versus a previous range of $16.1bn to $16.4bn.

Full year 2021 adjusted operating income margins are now expected to be in the range of 7.6% to 8.4% versus a previous range of 9.9% to 10.2% which includes the impacts of operating inefficiencies, increased supply chain disruption costs and other uncertainties.

The company will provide its third quarter financial results on 4 November, 2021.

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