Benzinga | Sep 21, 2021 07:14AM EDT

KAR Auction Withdraws FY21 Guidance As Chip Shortage Bites

* Wholesale used vehicle digital marketplace KAR Auction Services Inc (NYSE:KAR) has withdrawn its previously provided financial outlook for fiscal 2021, citing continued disruption caused by the chip shortage and the lack of visibility into used vehicle volumes in its marketplaces.

* The company expects Q3 Adjusted EBITDA of $95 million - $100 million.

* KAR projects 2.6 million vehicles sold in FY21.

* KAR also does not intend to provide Q4 expectations at this time due to the market uncertainty.

* Price Action: KAR shares closed lower by 2.42% at $15.73 on Monday.