Canada's Magna International Inc. said its second-quarter income plunged 28 percent to $452 million as the diversified auto supplier posted weaker results across most of its core business lines.
Revenue fell 1 percent to $10.1 billion.
The company also trimmed its sales forecast for the year on Thursday, as it expects a drop in vehicle production in North America and Europe due to weak global demand and the impact of U.S.-China trade tensions.
The North American automotive industry has been grappling with the fallout of the trade war, with several automakers already warning of higher costs as tariffs add billions of dollars in costs to vehicle production and assembly.
The supplier said it now expects total sales of $38.9 billion to $41.1 billion in 2019, compared with its previous estimate of $39.1 billion to $41.3 billion.
The company -- which also assembles cars in Austria for BMW, Daimler and Jaguar Land Rover -- cut its forecast for light vehicle production volume in North America to 16.6 million from 16.7 million. For Europe, it was trimmed to 21.4 million from 21.5 million.
Excluding one-time items, the company earned $1.59 per share, while analyst were expecting $1.53, according to IBES Refintiv data.
Magna noted that when excluding the impact of currency translation, and less revenue generated by divested businesses, most of its units improved their performance.
CEO Don Walker said the company actually posted better results than its own internal projections.
"Second quarter results came in slightly ahead of our expectations and our sales once again outpaced global vehicle production," Walker said in a statement. "We have been taking steps to optimize our business in response to lower industry volumes. Our 2019 outlook is largely unchanged despite our expectation of continued challenging automotive market conditions."
Reuters and Automotive News contributed to this report.
