Canadian auto parts supplier Magna International cut its annual sales and profit forecasts on Friday against the backdrop of the automobile industry grappling with weak demand.

Magna had benefited from a healthy flow of orders, with automakers ramping up production over the years, however, that pace has slowed as companies readjust their inventory levels to match demand.

The company supplies parts and builds vehicles at its manufacturing unit for various automakers including BMW , Mazda and Ferrari.

Last month, auto industry consultants J.D. Power and GlobalData cut their expectations for 2024 global light-vehicle sales by 500,000 units to 88 million units.

Auto parts supplier Aptiv said on Thursday it took extra steps to boost profitability, after it cut its annual sales forecast. Peer BorgWarner also cut its annual sales expectations.

Magna now expects annual total sales between USD 42.2 billion and USD 43.2 billion, compared with its prior forecast range of USD 42.5 billion to USD 44.1 billion.

It forecast full-year adjusted profit of USD 1.45 billion to USD 1.55 billion, down from its previous expectation of USD 1.5 billion to USD 1.7 billion.

On an adjusted basis, Magna earned USD 1.28 per share in the third quarter, missing the average analyst estimate of USD 1.40, according to data compiled by LSEG.

The company reported sales of USD 10.28 billion, below expectations of USD 10.35 billion.