Canadian auto parts maker Magna International Inc reported a lower-than-expected quarterly profit as costs rose.

Aurora, Ontario-based Magna said the cost of goods sold jumped 7.7 per cent to $7.90 billion in the fourth quarter ended Dec. 31.

Magna, which is primarily an auto parts supplier, also assembles cars under contract from motor vehicle manufacturers. Its biggest customers include General Motors Co, Volkswagen AG, BMW and Ford Motor Co .

Vehicle assembly sales in the quarter fell about 30 per cent to $439 million.

The company said it expects total 2017 sales to be between $36.0 billion-$37.7 billion, compared with sales of $36.45 billion in 2016.

Net income attributable to Magna rose to $478 million, or $1.24 per share, in the fourth quarter, from $476 million, or $1.17 per share, a year earlier.

Excluding items, the company earned $1.31 per share, missing the average analysts' estimate of $1.36, according to Thomson Reuters I/B/E/S.

Magna's total sales rose 8 per cent to $9.25 billion, beating estimates of $9.23 billion.