Magna International lowered its sales guidance but increased earnings targets after reporting higher second-quarter profit and sales.

The Canadian autoparts maker on Friday lowered its sales targets on the back of the effects of a stronger U.S. dollar and the earlier-than-expected completion of the Lighting and Rooftop Systems divestitures.

The company now expects sales of $41.3 billion to $42.5 billion, compared with $41.5 billion to $43.1 billion. Analysts on FactSet expect $42.35 billion.

Despite lower sales, the company increased its earnings targets on the back of strong first-half results and expectations for continued solid execution through the remainder of the year, it said.

The lower end of its adjusted earnings before interest and taxes margin guidance was increased and is now expected in a range of 6.3% to 6.6%. Previously it was 6% to 6.6%.

Adjusted earnings per share expectations are now at $6.70 to $7.30, up from $6.25 and $7.25, while free cash flow is now projected to come in between $1.75 billion and $1.85 billion. Previously guidance was for $1.6 billion to $1.8 billion.

Light vehicle production is expected to increase slightly in North America and Europe, but slip in China.

For the second quarter, reported net income $469 million, or $1.72 a share, up from $379 million, or $1.35 a share, in the comparable quarter a year ago.

Adjusted earnings were $1.86 a share. According to FactSet, analysts were expecting $1.53 a share.

Sales rose 3% to $10.98 billion, bucking a broader trend of a 2% decline in global light vehicle production. Analysts expected revenue of $10.73 billion in the quarter.

Magna credits the launch of new programs that took effect after the prior-year second quarter, including complete vehicle programs as well as stronger foreign currencies against the U.S. dollar, which supported U.S. dollar sales by $172 million.