Benzinga | Oct 11, 2021 11:46AM EDT

Aptiv Cuts FY21 Guidance Citing COVID-19 Impact, Chip Shortage

* Aptiv PLC (NYSE:APTV) has cut its FY2021 sales guidance to $15.1 billion - $15.5 billion (prior view $16.1 billion - $16.4 billion), versus the consensus of $15.83 billion.

* The company has updated the outlook to reflect a 7% decrease in global vehicle production rates, from 85 million to 79 million units, resulting from several factors, including the continued impacts of the COVID-19 pandemic and the worldwide semiconductor shortage on the global automotive supply chain.

* Aptiv expects FY21 adjusted operating income margins of 7.6% - 8.4% from the prior view of 9.9% - 10.2%, reflecting impacts of operating inefficiencies, increased supply chain disruption costs, and other uncertainties.

* The company expects global vehicle production to be about 18 million units for the third quarter, down 15% from the previously expected 21 million units.

* Aptiv expects global vehicle production to be approximately 20 million units for the fourth quarter, down 13% from the 23 million units expected previously.

* The company will release its third-quarter financial results on November 4, 2021.

* Price Action: APTV shares are trading lower by 0.31% at $164.6 on the last check Monday.