STOCKHOLM -- Autoliv slashed its outlook for the full year as lingering chip shortages hampered global car production as it reported lower than expected third-quarter earnings.
A shortage of semiconductors has hit the automotive sector hard, forcing many automakers to cut output despite a strong recovery in demand that followed hard on the heels of the short-lived market plunge suffered when the pandemic struck.
The world's largest producer of airbags and seatbelts said it expected supply disruptions to continue to impact light vehicle production in the fourth quarter.
"Although there are some indications of moderate improvement in semiconductor availability in Asia and North America, visibility remains poor," CEO Mikael Bratt said in the statement.
The rival of ZF and Joyson Safety Systems cut its 2021 guidance for like-for-like sales growth to about 8 percent from a previous forecast of 16-18 percent, and its adjusted operating margin forecast to around 8 percent from 9-9.5 percent.
Autoliv reported an operating profit of $99 million, down from $175 million in the year-ago quarter, and lagging a mean forecast for $110 million based on a poll of analysts published by the company.
Autoliv ranks No. 31 on the Automotive News Europe list of the top 100 global suppliers, with worldwide sales to automakers of $7.45 billion in 2020.