(Reuters) -Auto parts maker BorgWarner (NYSE:BWA) on Wednesday posted a better-than-expected quarterly profit, and raised its full-year outlook, even as top customer Ford Motor (NYSE:F) warned about a production hit due to a global semiconductor chip shortage.
Automakers and parts suppliers have been getting a boost from higher vehicle sales as more people prefer personal transport due to COVID-19, but a chip shortage that has forced car companies to shut factories and book billions of dollars in losses, threatens to dent gains.
Ford, which made up about 13% of BorgWarner's 2020 sales, said last week that the chip shortage could cut the automaker's second-quarter vehicle production in half.
BorgWarner, which makes products including turbochargers, powertrain sensors and battery heaters, said it now expects full-year sales between $14.8 billion and $15.4 billion, up from $14.7 billion to $15.3 billion, previously.
The company also raised its 2021 adjusted earnings per share forecast to a range of $4 to $4.35, from a prior range of $3.85 to $4.25 per share.
BorgWarner said adjusted earnings per share rose to $1.21 in the first quarter ended March 31, from 77 cents, a year earlier, beating analysts' average estimate of 92 cents per share, according to IBES data from Refinitiv.
Net sales rose 76% to $4.01 billion.