Magna narrows 2022 revenue view to $37.8B from $37.4B-$38.4B, consensus $37.79B

2022 Adjusted EBIT Margin is expected to be approximately 4.3%, which is below the 4.8% to 5.0% range disclosed in November. The reduced Adjusted EBIT Margin reflects a number of items, including: decreased contribution on lower sales; higher net warranty costs; provisions against certain accounts receivable and other balances; higher net engineering expense due to the revised timing of both spending and customer recoveries; operating underperformance at certain facilities; and higher labor and other operational inefficiencies as a result of the continued unpredictability of customers’ production schedules. Adjusted net income attributable to Magna is also impacted by the factors above.