Delphi has reported first quarter results that beat Wall Street analyst expectations as revenues grew 7% on strong vehicle production schedules in its major operating regions.
The company reported Q1 revenue of US$4.1bn, up 7%, and GAAP net income from continuing operations of US$320n. Adjusted operating income was put at US$509m, up 8%, for an adjusted operating income margin of 12.6%, up 20 basis points.
“Delphi’s strong quarterly results reflect the execution of our strategy, which delivered solid revenue growth and margin expansion,” said Kevin Clark, president and chief executive officer. “We remain confident in our ability to deliver on our customer and shareholder commitments in 2016 and beyond.”
Delphi said that its results reflected continued volume growth in North America, Europe and Asia Pacific. Adjusted for currency exchange, commodity movements, the acquisition of HellermannTyton Group PLC and the divestiture of the company’s Reception Systems business, revenue increased by 6% in the first quarter. This reflects growth of 5% in North America, 9% in Europe and 8% in Asia, partially offset by a decline of 24% in South America.
The company reported first quarter 2016 U.S. GAAP net income from continuing operations of US$320m from continuing operations of US$1.15 per diluted share, compared to US$288m and $0.99 per diluted share in the prior year period. First quarter Adjusted Net Income, a non-GAAP financial measure defined below, totalled US$377m, or US$1.36 per diluted share, which includes the favourable impact of a reduced share count, offset by a higher tax rate compared to the prior year period. Adjusted Net Income in the prior year period was US$353m, or US$1.21 per diluted share.
Delphi said that during the first quarter of 2016, it completed the final step of the divestiture of its former Thermal Systems business by closing the sale of its interest in the Shanghai Delphi Automotive Air Conditioning (“SDAAC”) joint venture for US$99m.
Delphi said it has further expanded its portfolio of technology solutions by acquiring PureDepth, Inc., a provider of multi-layer display technology that enables glasses-less 3D for cluster and other applications. The acquisition of PureDepth, Delphi said, will “complement and enhance Delphi’s fully-reconfigurable digital display product offerings”.
Delphi reaffirmed its forecast for 2016 adjusted earnings per share of between US$5.80 to US$6.10.