Delphi has reported its third-quarter net income up 32.4% on last year at $404m as it continued to enjoy volume growth in North America and Europe. However, the company also reported Q3 revenue down 3% at $3.6bn, which it said reflected unfavourable currency impacts.

Adjusted for currency exchange, commodity movements and the divestiture of the company's Reception Systems business, Delphi said revenue increased by 6% in the third-quarter. This reflects growth of 9% in North America, 6% in Europe and 5% in Asia, partially offset by a decline of 20% in South America.

“Delphi’s flexible business model delivered solid performance with revenue growth and expanded margins, despite headwinds in some global markets,” said Kevin Clark, president and chief executive officer. “We remain focused on excellent execution and enhancing our portfolio in high-growth areas, which will continue to drive growth and shareholder value going forward.”

For the nine months ended September 30, 2015, Delphi reported revenue of $11.3bn, a decline of 4% from the prior year period, reflecting unfavourable currency impacts, which offset continued volume growth in Asia and North America. Adjusted for currency exchange, commodity movements and the divestitures, it said revenue increased by 5% during the period. This reflects growth of 9% in Asia, 7% in North America and 4% in Europe, partially offset by a decline of 17% in South America.

For the 2015 year-to-date period, the company reported US GAAP net income from continuing operations of $989m and earnings from continuing operations of $3.43 per diluted share, compared to $969m and $3.19 per diluted share in the prior year period. Year-to-date Adjusted Net Income totalled $1,104m, or $3.83 per diluted share, which includes the favourable impact of a reduced share count. Adjusted Net Income in the prior year period was $1,106m, or $3.64 per diluted share.

Reaction and comment

Investor reaction appears unimpressed, with the Delphi share price down today. Net income was strongly up in the third quarter, but revenues were down. Investors seem concerned with an apparent deterioration in the immediate outlook (2015 guidance was shaved down) alongside possibly adverse demand trends in some parts of the world. There is also a feeling right now that the US market is hitting something of a ceiling alongside very low oil prices and a favourable replacement cycle that could start to turn down. This was also evident in the muted market reaction to Ford's (ostensibly rather stellar) Q3 results earlier this week.