Delphi has posted third quarter net income of US$271m, or 87 cents a share, from US$269m, or 84 cents a share, in the same quarter last year. The result was slightly ahead of analyst expectations.

“Overall, we had a great quarter. Although we remain cautious, the European market seems to be stabilising,” said Chief Executive Rodney O`Neal in a statement.

The company reported third quarter 2013 revenue of US$4bn, an increase of 3% compared to the third quarter of 2012, adjusting for currency exchange, commodity movements, acquisitions and divestitures. This reflects growth of 10% in Asia and 9% in North America, offset by declines of 5% in Europe and 2% in South America.

For the nine months ended September 30, 2013, the company reported revenue of US$12.3bn, a decrease of 1% compared to the nine months ended September 30, 2012, adjusting for currency exchange, commodity movements, acquisitions and divestitures. This reflects growth of 9% in Asia, 4% in North America and 6% in South America, offset by a decline in Europe of 10%.

For the 2013 year-to-date period, Adjusted Net Income totalled US$1,026m million, which compares with US$954m last year.

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Delphi Reports Third Quarter 2013 Financial Results

Highlights include:

  • Third quarter U.S. GAAP diluted earnings per share of $0.87 compared to $0.84 in the prior year; Year-to-date diluted earnings per share of $2.92 compared to $2.89 in the prior year
  • Excluding special items, third quarter earnings of $0.97 per diluted share, an increase of 15% compared to $0.84 per diluted share in the prior year; Year-to-date diluted earnings of $3.28 compared to $2.93 per diluted share in the prior year
  • Third quarter Adjusted Operating Income and Adjusted Operating Income margin of $428 million and 10.7%, compared with $370 million and 10.1% for the same period in 2012; Year-to-date Adjusted Operating Income and Adjusted Operating Income margin of $1,372 million and 11.2%, compared with $1,316 million and 11.2% for the same period in 2012
  • Third quarter Adjusted EBITDA and Adjusted EBITDA margin of $566 million and 14.1%, compared with $483 million and 13.2% for the same period in 2012; Year-to-date Adjusted EBITDA and Adjusted EBITDA margin of $1,773 million and 14.4%, compared with $1,656 million and 14.1% for the same period in 2012
  • Third quarter revenue of $4.0 billion, up 10% over the same period in 2012; up 3% adjusted for the impacts of currency, commodities, acquisitions and divestitures
  • Generated year-to-date operating cash flow of $1,070 million
  • Executed $120 million of share repurchases in the third quarter of 2013; share repurchases year-to-date of $362 million

November 05, 2013 07:00 AM Eastern Standard Time

GILLINGHAM, England--(BUSINESS WIRE)--Delphi Automotive PLC (NYSE: DLPH), a leading global vehicle components manufacturer, today reported third quarter 2013 revenues of $4.0 billion, an increase of 10% from the prior year period, reflecting continued strong growth in Asia and North America. Adjusted for the impacts of currency exchange, commodity movements, acquisitions and divestitures, revenue increased by 3% in the third quarter.

“I continue to be optimistic about Delphi’s future.”

The Company reported third quarter U.S. GAAP net income of $271 million and earnings of $0.87 per diluted share, compared to $269 million and $0.84 per diluted share in the prior year period. The current year quarterly U.S. GAAP results include special items consisting of restructuring-related charges and acquisition-related integration costs. Excluding these special items, the Company reported adjusted third quarter earnings of $302 million, or $0.97 per diluted share, compared to adjusted earnings of $271 million, or $0.84 per diluted share in the prior year period.

“Overall, we had a great quarter. Although we remain cautious, the European market seems to be stabilizing,” said Rodney O’Neal, chief executive officer and president. “I continue to be optimistic about Delphi’s future.”

Third Quarter 2013 Results

The Company reported third quarter 2013 revenue of $4.0 billion, an increase of 3% compared to the third quarter of 2012, adjusting for currency exchange, commodity movements, acquisitions and divestitures. This reflects growth of 10% in Asia and 9% in North America, offset by declines of 5% in Europe and 2% in South America.

Third quarter net income excluding restructuring, acquisition-related integration costs, and losses on extinguishment of debt ("Adjusted Net Income"), totaled $302 million, or $0.97 per diluted share, which includes the unfavorable impact of an increased effective tax rate and the favorable impact of a reduced share count. Adjusted Net Income in the prior year period was $271 million, or $0.84 per diluted share.

Third quarter earnings before interest expense, other income (expense), income tax expense, equity income, restructuring and acquisition integration costs ("Adjusted Operating Income") was $428 million, compared to $370 million in the prior year period. Adjusted Operating Income margin was 10.7% in the third quarter of 2013, an increase of 60 basis points compared with 10.1% in the prior year period.

Third quarter earnings before depreciation and amortization, interest expense, other income (expense), income tax expense, equity income, restructuring and acquisition integration costs (“Adjusted EBITDA”) was $566 million, compared to $483 million in the prior year period. Adjusted EBITDA margin increased 90 basis points in the third quarter of 2013 to 14.1%, compared with 13.2% in the prior year period. The increase in Adjusted EBITDA reflects the continued strong performance of our businesses in Asia and North America as well as the increased earnings from the acquisition of the Motorized Vehicles Division ("MVL"), partially offset by continued sales declines in Europe.

Interest expense for the third quarter totaled $34 million compared to $32 million in the prior year period. Tax expense in the third quarter of 2013 was $72 million, resulting in a U.S. GAAP effective tax rate of approximately 20%, compared to $52 million, or an effective rate of 15%, in the prior year period. The increase is primarily the result of the geographic mix of pretax earnings and an increase in discrete tax items, including the impacts of tax law changes, of approximately $10 million.

The Company generated net cash flow from operating activities of $398 million in the third quarter of 2013, compared to $414 million in the prior year period.

Year-to-Date 2013 Results

For the nine months ended September 30, 2013, the Company reported revenue of $12.3 billion, a decrease of 1% compared to the nine months ended September 30, 2012, adjusting for currency exchange, commodity movements, acquisitions and divestitures. This reflects growth of 9% in Asia, 4% in North America and 6% in South America, offset by a decline in Europe of 10%.

For the 2013 year-to-date period, Adjusted Net Income totaled $1,026 million, or $3.28 per diluted share, which includes the favorable impacts of a lower effective tax rate and reduced share count. Adjusted Net Income in the prior year period was $954 million, or $2.93 per diluted share.

The Company reported Adjusted Operating Income of $1,372 million for the nine months ended September 30, 2013, compared to $1,316 million in the prior year period. Adjusted Operating Income margin was 11.2% in the nine months ended September 30, 2013, compared with 11.2% in the prior year period.

For the nine months ended September 30, 2013, Adjusted EBITDA was $1,773 million, compared to $1,656 million in the prior year period. Adjusted EBITDA margin was 14.4% for the nine months ended September 30, 2013, compared with 14.1% in the prior year period. The increase in Adjusted EBITDA reflects the increased earnings from the acquisition of MVL, partially offset by sales declines in Europe.

Interest expense for the nine months ended September 30, 2013 totaled $106 million, comparable to $100 million in the prior year period. Additionally, the first quarter of 2013 included a net loss on retirement of debt totaling $39 million. Tax expense for the year-to-date 2013 was $182 million, resulting in a U.S. GAAP effective tax rate of approximately 16%, compared to $227 million, or an effective rate of 19%, in the prior year period. The improvement in 2013 primarily reflects the geographic mix of lower pretax earnings and tax planning initiatives.

The Company generated net cash flow from operating activities of $1,070 million in the nine months ended September 30, 2013, compared to $1,168 million in the prior year period. As of September 30, 2013, the Company had cash and cash equivalents of $1.1 billion and access to $1.5 billion in undrawn committed revolving bank facilities, and total debt of $2.4 billion.

Share Repurchase Program

During the third quarter of 2013, Delphi repurchased 2.12 million shares for approximately $120 million under its existing authorized share repurchase program, leaving approximately $285 million available for future share repurchases. Year-to-date, the Company has repurchased 7.42 million shares for approximately $362 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.

Full Year 2013 Outlook

The Company's full year 2013 financial guidance is as follows:

(in millions, except per share amounts)  

Previous
Full Year 2013

   

Current
Full Year 2013

Adjusted Earnings Per Share   $4.22 - $4.45     $4.25 - $4.35
Adjusted EBITDA   $2,350 - $2,425     $2,350 - $2,370
Adjusted EBITDA Margin   14.4% - 14.7%     14.4% - 14.5%
Revenue   $16,300 - $16,500     $16,300 - $16,400
Cash Flow Before Financing   $1,000     $1,000
Capital Expenditures   $750     $700
Adjusted Effective Tax Rate   18%     18%
Share Count - Diluted   313     312

Conference Call and Webcast

The Company will host a conference call to discuss these results at 9:00 a.m. (ET) today, which is accessible by dialing 888.486.0553 (US domestic) or 706.634.4982 (international) or through a webcast at http://investor.delphi.com/. The conference ID number is 77004481. A slide presentation will accompany the prepared remarks and has been posted on the investor relations section of the Company's website. A replay will be available two hours following the conference call.

Original source: Delphi via Business Wire