UPDATE 2-Aptiv CEO: Electric vehicle demand is accelerating
(Adds CEO comments)
By Ankit Ajmera
May 6 (Reuters) - Auto technology supplier Aptiv Plc on Thursday reported better-than-expected quarterly profits, and Chief Executive Kevin Clark said the company will benefit from a surge in new electric vehicle projects at major auto manufacturers.
"We are seeing tremendous acceleration in demand for battery electric and plug-in hybrids," Clark told Reuters. Aptiv's revenues from high voltage vehicle electrification increased by 126% in the first quarter, and the company expects 50% growth in that category for the full year, Clark said.
"For us it's great," Clark said. Aptiv can generate twice the revenue from technology it supplies to a battery electric vehicle as an internal combustion one, he said.
A recent global shortage of semiconductor chips, used in cars for everything from power steering and brake sensors to entertainment systems, has led to a curtailment of production at car companies, which is denting sales growth at auto parts makers including Aptiv.
Clark said vehicle production during the second quarter will be volatile, but automakers are planning to try to recover some lost production during the second half of the year.
Aptiv, which counts Volkswagen AG and Ford Motor Co among its top customers, reaffirmed its full-year financial outlook.
Increased demand for trucks and sport utility vehicles in North America will help Aptiv offset costs related to supply chain problems, which go beyond semiconductors to certain raw materials, such as copper, and freight capacity, Clark said. U.S. consumers are buying trucks and larger SUVs at high prices, loaded with electronic features that Aptiv supplies.
Other auto parts makers such as BorgWarner and Magna International Inc, which also cater to Volkswagen and Ford, have raised their full-year forecasts, after reporting strong results, even as the automakers shut factories due to the chip shortage.
Aptiv makes products including advanced driver assistance systems, vehicle computers and high-voltage cabling.
Excluding items, Aptiv earned $1.06 per share in the first quarter, beating analysts' average estimate of 78 cents per share, according to IBES data from Refinitiv.
Net sales rose 25% to $4.02 billion, topping Wall Street's estimate of $3.62 billion. (Reporting by Ankit Ajmera in Bengaluru and Joseph White in Detroit; Editing by Shinjini Ganguli and Steve Orlofsky)
