(Recasts first paragraph; adds CEO comment, shares, background on inflation) Aug 5 (Reuters) - Aptiv Plc expects higher costs due to pandemic-related supply chain problems to spill into the next year, as the auto parts supplier battles an industry-wide shortage of raw materials and rising inflation. The company, whose customers include Stellantis NV, Volkswagen AG and General Motors Co, said its quarterly profit was hit by higher prices of chips and copper, its biggest commodity exposure, and as automakers cut production. “It will continue to be more expensive to operate in the current environment,” Aptiv Chief Executive Officer Kevin Clark said in a post-earnings call with analysts. Shares of Aptiv, which makes advanced driver assistance systems, vehicle computers and high-voltage cabling, were down 3.4%. Manufacturers have been struggling with supply bottlenecks and a relentless rise in prices of raw materials with few Aptiv customers, including General Motors Co, cutting shifts at some plants. Aptiv, which practices “just-in-time” inventory stocking like its peers, said it was taking steps including passing on some costs to customers to alleviate the impact of higher expenses. The company forecast annual sales higher than market estimates, betting on a surge in demand for both electric and traditional fuel-powered vehicles. Aptiv now expects 2021 net sales to be between $16.12 billion and $16.42 billion, compared with analysts’ estimates of $15.68 bln, according to Refinitiv IBES data. It forecast higher adjusted net income per share of $3.63 to $3.87, compared with expectations of $3.73 per share. Aptiv posted net income of $147 million, or 54 cents per share, for the second quarter ended June 30, compared to a net loss of $369 million, or $1.43 per share, a year earlier when global vehicle production dropped 45%. Excluding items, it reported a profit of 60 cents per share, below expectations of 67 cents per share. Net sales nearly doubled to $3.81 billion, beating estimates of $3.56 bln. (Reporting by Abhijith Ganapavaram in Bengaluru; editing by Vinay Dwivedi) Our Standards: The Thomson Reuters Trust Principles.
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