Oct 31 (Reuters) - Aptiv PLC ( APTV ) said on Thursday

that it has taken extra steps to boost profitability, after it

cut its annual sales forecast, as the company adapts to a

difficult market environment.

Shares of Aptiv ( APTV ) fell over 16% in early trade.

The auto industry faced a bumpy second half of the year over

competition from Chinese companies and a decline in consumer

demand due to inflation and economic concerns.

The transition to an EV-first future has presented

challenges for many automakers, who have prioritized production

of higher-margin vehicles, such as affordable crossovers and

hybrid models, over EVs.

Companies like Aptiv ( APTV ) and Magna which specialize in

manufacturing parts and components for electrified vehicles,

will likely feel the impact of this shift.

The company is implementing profit improvement actions to

diversify its customer base, consolidate its manufacturing

footprint and reduce direct and indirect labor across regions,

CEO Kevin Clark said on a post-earnings call.

Dublin-based Aptiv ( APTV ), counts the Detroit Three automakers,as

well as Volkswagen AG and BMW as key customers and

supplies key electrical components and safety software for

vehicles.

Aptiv ( APTV ) also faces cascading costs associated with expensive

semiconductors, which are essential for powering various

features in modern, connected vehicles, including infotainment

systems and heads-up displays, among other components.

Auto supplier BorgWarner ( BWA ) also cut its annual sales

guidance to account for lower market production.

Aptiv ( APTV ) expects its annual revenue to be between $19.6 billion

and $19.9 billion, compared to its prior estimate of between

$20.1 and $20.4 billion.

On an adjusted basis, Aptiv ( APTV ) earned $1.83 per share during

the quarter ended Sept. 30, compared to analyst estimates of

$1.68, according to data compiled by LSEG.

Overall revenue fell 5% to $4.9 billion compared with

analysts estimates of $5.2 billion.