Delhi has unveiled improved Q4 revenue and net income

Delhi has unveiled improved Q4 revenue and net income

Delphi has posted fourth quarter revenue up 3% to US$4.2bn, while full-year earnings also rose 3% to US$17bn.

"Delphi's strong fourth quarter financial results continue to demonstrate the focus of the entire organisation on executing our strategy," said Delphi CEO, Rodney O'Neal.

"Against the backdrop of an uneven global economy, each of our businesses delivered improved operating results in 2014. 

"Delphi is well-positioned to capitalise on opportunities to further generate value for our customers and shareholders in 2015."

The company reported fourth quarter 2014 revenue of US$4.2bn, consistent with the prior- year period, reflecting continued above-market volume growth in Asia and North America, offset by unfavourable currency impacts.

Adjusted for the impacts of currency exchange and commodity movements, revenue increased by 3% in the fourth quarter.

This reflects growth of 11% in Asia and 7% in North America, partially offset by declines of 3% in Europe and 9% in South America.

For full-year 2014, Delphi reported revenue of US$17bn, an increase of 3% from the prior-year period, reflecting continued above-market growth in Asia and North America.

Adjusted for the impacts of currency exchange and commodity movements, revenue increased by 4% during the year.

This reflects growth of 11% in Asia, 7% in North America and flat performance in Europe, partially offset by a decline of 16% in South America.

Fourth quarter net GAAP income was US$344m compared to US$298m, while full-year net GAAP income was US$1.35bn compared to US$1.21bn the previous year.

Show the press release

GILLINGHAM, England — Delphi Automotive PLC (NYSE: DLPH), a leading global vehicle components manufacturer, today reported fourth quarter 2014 U.S. GAAP earnings of $1.16 per diluted share. Excluding special items, fourth quarter earnings increased 18% to $1.32 per diluted share.


Fourth Quarter Highlights Include:
  • Revenue of $4.2 billion
  • U.S. GAAP diluted earnings per share of $1.16, up 20%
  • Adjusted Operating Income of $520 million, up 10%
  • Share repurchases and dividends of $423 million
Full Year 2014 Highlights Include:
  • Revenue of $17.0 billion, up 3%
  • U.S. GAAP diluted earnings per share of $4.48, up 15%
  • Adjusted Operating Income of $2,018 million, up 9%
  • Generated $2,135 million of cash from operations, up 22%
  • Share repurchases and dividends of $1.3 billion

“Delphi's strong fourth quarter financial results continue to demonstrate the focus of the entire organization on executing our strategy," said Rodney O'Neal, chief executive officer and president. "Against the backdrop of an uneven global economy, each of our businesses delivered improved operating results in 2014.  Delphi is well-positioned to capitalize on opportunities to further generate value for our customers and shareholders in 2015."

Fourth Quarter 2014 Results
The Company reported fourth quarter 2014 revenue of $4.2 billion, consistent with the prior year period, reflecting continued above-market volume growth in Asia and North America, offset by unfavorable currency impacts. Adjusted for the impacts of currency exchange and commodity movements, revenue increased by 3% in the fourth quarter. This reflects growth of 11% in Asia and 7% in North America, partially offset by declines of 3% in Europe and 9% in South America.

The Company reported fourth quarter U.S. GAAP net income of $344 million and earnings of $1.16 per diluted share, compared to $298 million and $0.97 per diluted share in the prior year period. Fourth quarter net income excluding restructuring and other special items ("Adjusted Net Income"), totaled $391 million, or $1.32 per diluted share, which includes the favorable impacts of a decreased effective tax rate and a reduced share count. Adjusted Net Income in the prior year period was $345 million, or $1.12 per diluted share.

Fourth quarter earnings before interest expense, other income (expense), net, income tax expense, equity income (loss), net of tax, restructuring and other special items ("Adjusted Operating Income") was $520 million, compared to $472 million in the prior year period. Adjusted Operating Income margin increased 120 basis points in the fourth quarter of 2014 to 12.5%, compared with 11.3% in the prior year period. The increase in Adjusted Operating Income reflects the continued strong performance and growth of our businesses in Asia and North America, as well as the benefits of our on-going restructuring programs focused on aligning our manufacturing capacity and footprint with the current automotive production levels in Europe and South America. Depreciation and amortization expense totaled $146 million in the fourth quarter, compared to $139 million in the prior year period.

Interest expense for the fourth quarter totaled $34 million, a decrease from $37 million in the prior year period, which reflects the continued benefits of our debt refinancing transactions in the first quarter of 2014.

Tax expense in the fourth quarter of 2014 was $82 million, resulting in an effective tax rate of approximately 18%, compared to $74 million, or an effective tax rate of approximately 19%, in the prior year period. The increase reflects higher pretax earnings, discrete items and the geographic mix of pretax earnings.

Full Year 2014 Results
For full year 2014, the Company reported revenue of $17.0 billion, an increase of 3% from the prior year period, reflecting continued above-market growth in Asia and North America. Adjusted for the impacts of currency exchange and commodity movements, revenue increased by 4% during the year. This reflects growth of 11% in Asia, 7% in North America and flat performance in Europe, partially offset by a decline of 16% in South America.

For full year 2014, the Company reported U.S. GAAP net income of $1,351 million and earnings of $4.48 per diluted share, compared to $1,212 million and $3.89 per diluted share in the prior year period. Full year 2014 Adjusted Net Income totaled $1,537 million, or $5.09 per diluted share, which includes the favorable impact of a reduced share count, compared to Adjusted Net Income of $1,371 million, or $4.40 per diluted share, in the prior year period.

The Company reported Adjusted Operating Income of $2,018 million for full year 2014, compared to $1,844 million in the prior year period. Adjusted Operating Income margin was 11.9% for full year 2014, an improvement of 70 basis points, compared with 11.2% in the prior year period. The increase in Adjusted Operating Income reflects the continued strong performance and growth of our businesses in Asia and North America, as well as the benefits of our on-going restructuring programs focused on aligning our manufacturing capacity with the current automotive production levels in Europe and South America. Depreciation and amortization expense totaled $587 million, compared to $540 million in the prior year period.

Interest expense for full year 2014 totaled $135 million, a decrease from $143 million in the prior year period, which reflects the benefits of our debt refinancing transactions in the first quarter of 2014. Additionally, the years ended December 31, 2014 and 2013 included losses on the extinguishment of debt totaling $34 million and $39 million, respectively.

Tax expense for full year 2014 was $282 million, resulting in an effective tax rate of approximately 17%, compared to $256 million, or an effective tax rate of approximately 17%, in the prior year period, which includes the impacts of higher pretax earnings in the current period and the geographic mix of these pretax earnings.

The Company generated net cash flow from operating activities of $2,135 million in 2014, compared to $1,750 million in the prior year period. Cash flow before financing totaled $1,294 million, compared to $1,095 million in the prior year period. As of December 31, 2014, the Company had cash and cash equivalents of $0.9 billion and total debt of $2.5 billion.

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 measure 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 fourth quarter of 2014, Delphi repurchased 5.04 million shares for approximately $350 million under its existing authorized share repurchase program, leaving approximately $166 million available for future share repurchases. As previously disclosed, the Company's Board of Directors also authorized a new $1.5 billion share repurchase program, commencing upon the completion of the existing program. Year-to-date, the Company has repurchased 15.04 million shares for approximately $1.0 billion. 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.

Q1 2015 and Full Year 2015 Outlook
The Company's first quarter and full year 2015 financial guidance is as follows:

(in millions, except per share amounts)

Q1 2015

Full Year 2015

Revenue

$4,150 - $4,250

$17,100 - $17,500

Adjusted operating income

$470 - $500

$2,100 - $2,200

Adjusted operating income margin

11.3% - 11.8%

12.3% - 12.6%

Adjusted earnings per share

$1.15 - $1.30

$5.35 - $5.65

Cash flow before financing

 

$1,200

Capital expenditures

 

$900

Adjusted effective tax rate

17%

17%

Share count - diluted

294

294

 

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 67426371. 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.

Use of Non-GAAP Financial Information
This press release contains information about Delphi's financial results which are not presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Specifically, Adjusted Operating Income, Adjusted Net Income, Adjusted Net Income per Share and Cash Flow Before Financing are non-GAAP financial measures. Adjusted Operating Income represents net income before interest expense, other income (expense), net, income tax expense, equity income (loss), net of tax, restructuring, asset impairments and other project and integration costs related to acquisitions and other portfolio transactions. Adjusted Net Income represents net income (loss) attributable to Delphi before restructuring, asset impairments, transaction costs associated with acquisitions, other project and integration costs related to acquisitions and other portfolio transactions, debt extinguishment costs and the net impact of significant deferred tax asset valuation allowance estimate changes. Adjusted Net Income Per Share represents Adjusted Net Income divided by the weighted average number of diluted shares outstanding for the period. Cash Flow Before Financing represents cash provided by (used in) operating activities plus cash provided by (used in) investing activities, adjusted for the purchase price of business acquisitions. Management believes the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company's financial position and results of operations.

Such non-GAAP financial measures are reconciled to the most directly comparable GAAP financial measures in the attached supplemental schedules at the end of this press release. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures of other companies.

About Delphi
Delphi Automotive PLC (NYSE: DLPH) is a leading global supplier of technologies for the automotive and commercial vehicle markets. Headquartered in Gillingham, U.K., Delphi operates major technical centers, manufacturing sites and customer support services in 33 countries. Delphi delivers innovation for the real world with technologies that make cars and trucks smarter and safer as well as more powerful and efficient. Visit www.delphi.com

Original source: http://delphi.com/media/pressreleases/2015/02/04/delphi-reports-fourth-quarter-and-full-year-2014-financial-results