Delphi reports third quarter 2017 financial results REVISTA AUTO MOTORES INFORMA

Delphi reports third quarter 2017 financial results

3 nov. 2017 / Delphi Automotive PLC, a leading global technology company serving the automotive sector, reported third quarter 2017 U.S. GAAP earnings from continuing operations of $1.48 per diluted share. Excluding special items, third quarter earnings from continuing operations totaled $1.66 per diluted share.

Third Quarter Highlights Include:
  • Revenue of $4.3 billion, up 4.4% adjusted for currency exchange, commodity movements, acquisitions and divestitures
  • U.S. GAAP net income from continuing operations of $395 million, diluted earnings per share from continuing operations of $1.48
    • Excluding special items, earnings from continuing operations of $1.66 per diluted share, up 11%
  • U.S. GAAP Operating Income margin of 11.8%
    • Adjusted Operating Income margin of 13.1%; Adjusted Operating Income of $566 million, up 6%
  • Share repurchases and dividends of $172 million

Year-to-Date Highlights Include:

  • Revenue of $12.9 billion, up 6.0% adjusted for currency exchange, commodity movements, acquisitions and divestitures
  • U.S. GAAP net income from continuing operations of $1,099 million, diluted earnings per share from continuing operations of $4.10
    • Adjusted earnings from continuing operations of $4.95 per diluted share, up 11%
  • U.S. GAAP Operating Income margin of 11.1%. 
    • Adjusted Operating Income margin of 13.1%; Adjusted Operating Income of $1,690 million, up 4%
  • Share repurchases and dividends of $616 million
  • Raising outlook for sales, operating income and earnings per share
  • Spin-off of Powertrain Systems segment continues to progress 
    • Successfully completed Spin-off capital structure
    • Remaining company will be renamed Aptiv PLC following spin-off; Powertrain Spin-off will retain Delphi brand name as Delphi Technologies PLC

“Delphi delivered record third quarter financial performance, resulting from our strategy for disciplined growth and operational excellence while also continuing to invest for the future,” said Kevin Clark, president and chief executive officer. “Our quarterly results were driven by double-digit growth in our fastest growing product lines, including active safety, infotainment, vehicle electrification and advanced gas solutions. The spin-off of Delphi Technologies PLC into a new public company is continuing to progress as planned, and our new business wins in the quarter reinforce strong growth outlooks for both companies. Additionally, as a result of our performance year-to-date, we are once again raising our full year 2017 outlook.”

Third Quarter 2017 Results

The Company reported third quarter 2017 revenue of $4.3 billion, an increase of 6% from the prior year period. Adjusted for currency exchange, commodity movements and the divestiture of the Company’s Mechatronics business, revenue increased by 4.4% in the third quarter. This reflects growth of 6% in Europe, 19% in Asia and 25% in South America, partially offset by a decline of 8% in North America.

The Company reported third quarter 2017 U.S. GAAP net income from continuing operations of $395 million and earnings from continuing operations of $1.48 per diluted share, compared to $293 million and $1.07 per diluted share in the prior year period. Third quarter Adjusted Net Income, a non-GAAP financial measure defined below, totaled $443 million, or $1.66 per diluted share, which includes the favorable impacts of a reduced share count and a lower tax rate compared to the prior period. Adjusted Net Income in the prior year period was $409 million, or $1.50 per diluted share.

Third quarter Adjusted Operating Income, a non-GAAP financial measure defined below, was $566 million, compared to $534 million in the prior year period, resulting from the continued above-market growth of our businesses in Europe and Asia Pacific. Third quarter Adjusted Operating margin was 13.1%, consistent with the prior year period, reflecting sales growth and the beneficial impacts of cost reduction initiatives, offset by investments for growth and a 30 basis point reduction as a result of the Mechatronics divestiture. Depreciation and amortization expense totaled $183 million, an increase from $174 million in the prior year period.

Interest expense for the third quarter totaled $36 million, as compared to $41 million in the prior year period, which reflects the benefits of our debt refinancing transactions in the third quarter of 2016.

Tax expense in the third quarter of 2017 was $60 million, resulting in an effective tax rate of approximately 13%, compared to $57 million, or an effective rate of 16%, in the prior year period. The decrease in the effective tax rate reflects the geographic mix of pretax earnings and the impact of discrete items.

The Company generated net cash flow from operating activities of $151 million in the third quarter, compared to $415 million in the prior year period. The decrease was attributable to the $310 million payment made to settle the Unsecured Creditors litigation in the third quarter of 2017.

Year-to-Date 2017 Results

For the nine months ended September 30, 2017, the Company reported revenue of $12.9 billion, an increase of 5% from the prior year period. Adjusted for currency exchange, commodity movements and the divestiture of the Company’s Mechatronics business, revenue increased by 6.0% during the period. This reflects growth of 6% in Europe, 15% in Asia, 19% in South America and consistent performance in North America.

For the 2017 year-to-date period, the Company reported U.S. GAAP net income from continuing operations of $1,099 million and earnings from continuing operations of $4.10 per diluted share, compared to $871 million and $3.18 per diluted share in the prior year period. Year-to-date Adjusted Net Income totaled $1,328 million, or $4.95 per diluted share, which includes the favorable impacts of a reduced share count and a lower tax rate compared to the prior period. Adjusted Net Income in the prior year period was $1,221 million, or $4.45 per diluted share.

The Company reported Adjusted Operating Income of $1,690 million for the nine months ended September 30, 2017, compared to $1,626 million in the prior year period, resulting from the continued above-market growth of our business. Adjusted Operating margin was 13.1% for the nine months ended September 30, 2017, compared to 13.2% in the prior year period, reflecting the 30 basis point impact of the Mechatronics divestiture, continued investments for growth and warranty charges, offset by sales growth and the beneficial impacts of cost reduction initiatives, including our continuing rotation to best cost manufacturing locations in Europe. Depreciation and amortization expense totaled $539 million, an increase from $526 million in the prior year period.

Interest expense for the nine months ended September 30, 2017 totaled $105 million, as compared to $123 million in the prior year period, which reflects the benefits of our debt refinancing transactions in the third quarter of 2016.

Tax expense for the nine months ended September 30, 2017 was $183 million, resulting in an effective tax rate of approximately 14%, compared to $216 million, or an effective rate of 20%, in the prior year period. The decrease in the effective tax rate reflects the geographic mix of pretax earnings, the absence of certain restructuring charges recorded in the prior period for which no tax benefit was recognized and the impact of discrete items.

The Company generated net cash flow from operating activities of $1,040 million in the nine months ended September 30, 2017, compared to $1,258 million in the prior year period, reflecting the $310 million payment made in 2017 to settle the Unsecured Creditors litigation as described above. As of September 30, 2017, the Company had cash and cash equivalents of $0.6 billion and total debt of $4.9 billion, which includes the $800 million of Powertrain spin-off senior notes issued in September, as further described below.

Reconciliations of Adjusted Net Income, Adjusted Net Income per Share, Adjusted Operating Income and Cash Flow Before Financing, which are non-GAAP measures, to the most directly comparable financial measures, respectively, calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”) are provided in the attached supplemental schedules.

Share Repurchase Program

During the third quarter of 2017, the Company repurchased 1.02 million shares for approximately $95 million under its existing authorized share repurchase program, leaving approximately $989 million available for future share repurchases. Year-to-date, the Company repurchased 4.67 million shares for approximately $383 million. All repurchased shares were retired, and are reflected as a reduction of ordinary share capital for the par value of the shares, with the excess applied as reductions to additional paid-in-capital and retained earnings.

Acquisition of nuTonomy

Delphi further strengthened its position as a provider of autonomous mobility solutions by agreeing to acquire nuTonomy, Inc. (“nuTonomy”), a leading provider of autonomous driving software and technology. The combination of nuTonomy into Delphi’s existing industry-leading autonomous driving operations will further accelerate the Company’s commercialization of autonomous driving and Automated Mobility on-Demand solutions for automakers and new mobility customers worldwide. By combining efforts with nuTonomy in Boston, Singapore, and other pilot cities around the world, Delphi will have 60 autonomous cars on the road across three continents by year-end, with the goal to further accelerate global fleet expansion and technology development. The acquisition of nuTonomy is the latest in a series of investments that Delphi has made to expand its leadership position in the new mobility space, including the acquisition of autonomous driving software developer Ottomatika and data service companies Control-Tec and Movimento.

Spin-off of Powertrain Systems Segment into Delphi Technologies

The Company continued its progress toward the planned tax-free spin-off of its Powertrain Systems segment into a new, independent publicly traded company that will be named Delphi Technologies PLC, and remains on track to complete the transaction by March 2018. Certain details of the separation are included in the amended Form 10 registration statement filed with the Securities and Exchange Commission, and further information will be included in future amendments to the Form 10 registration statement. Following the separation, Delphi Technologies PLC intends to have its ordinary shares listed on the New York Stock Exchange under the ticker symbol “DLPH”. As previously announced, in September 2017 the financing of the spin-off was completed, consisting of the offering of $800 million of 5.00% senior notes due 2025 and the execution of a senior secured credit agreement which will provide a $750 million five-year term loan and a $500 million revolving credit facility to Delphi Technologies PLC upon completion of the separation. The proceeds received from the notes offering were deposited into escrow for release to Delphi Technologies PLC upon the separation. There can be no assurance regarding the timing of the spin-off or its completion, and the transaction is subject to customary market, regulatory and other conditions.

About admin

relacionado!

Volvo Cars global sales up 8.6 per cent in first 10 months of 2017 REVISTA AUTO MOTORES INFORMA

Volvo Cars global sales up 8.6 per cent in first 10 months of 2017

2 nov. 2017 / Volvo Cars, the premium car maker, remains on track for a fourth …

Deja un comentario