Delphi Technologies (the propulsion tech activities of the former Delphi PLC which split in two last last year) has reported revenues and profits up in Q4 and for the full-year 2017.
Delphi Technologies PLC reported fourth quarter 2017 US GAAP earnings of US$0.63 per diluted share. Excluding special items, fourth quarter earnings totalled $1.24 per diluted share. The company also reported revenue of $1.3bn for the quarter and $4.8bn for the full year, an increase of 9% compared to the respective equivalent prior periods, on an adjusted basis.
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Prior to 4 December 2017, Delphi Technologies operated as the Powertrain Systems segment of Delphi Automotive PLC (the “former parent”) and the historical financial information presented in this press release for periods prior to 4 December 2017 were derived from the former parent’s accounting records and are presented on a carve-out basis as if Delphi Technologies had operated as a stand-alone company for all periods presented.
Fourth quarter highlights
- Revenue of $1.3bn, up 9% year-on-year
- US GAAP net income of $56m, diluted earnings per share of $0.63
- Excluding special items, earnings of $1.24 per diluted share
- US GAAP operating income of $106m, or 8.2% margin
- Adjusted operating income of $164m, or 12.7% margin
- Generated $95m of cash from operating activities
- Completed the separation in early December
Full year 2017 highlights
- Revenue of $4.8bn, up 9% year-on-year
- US GAAP net income of $285m, diluted earnings per share of $3.21
- Excluding special items, earnings of $5.15 per diluted share
- US GAAP operating income of $446m, or 9.2% margin
- Adjusted operating income of $637m, or 13.1% margin
- Generated $389m of cash from operating activities
- Closed 2017 with a cash and cash equivalents balance of $338m
“2017 was a tremendous year for Delphi Technologies. We delivered strong revenue growth, margin expansion and ended the year with record bookings. As a leader in advanced vehicle propulsion systems, we are well positioned to support our customers across the globe on their path to electrification, at the same time as providing efficient, clean and cost effective technologies for internal combustion engines,” said Liam Butterworth, president and chief executive officer for Delphi Technologies. “For 2018, we will continue to focus on delivering value to shareholders and customers through our pioneering innovation and technology investments, leveraging our strong operational execution capabilities to drive long-term growth.”
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By GlobalDataFourth quarter 2017 results
The company reported fourth quarter 2017 revenue of $1.3bn, an increase of 12% from the prior year period, reflecting continued volume growth. Adjusted for currency exchange and certain aftermarket original equipment service revenue retained by the former parent, revenue increased by 9% in the fourth quarter. This reflects growth of 10% in Powertrain Systems and 4% in Delphi Technologies Aftermarket. It also reflects growth of 19% in Asia Pacific, 5% in Europe, 3% in North America and 16% in South America.
The company reported fourth quarter 2017 US GAAP net income of $56m and net income of $0.63 per diluted share, compared to $78m and $0.88 per diluted share in the prior year period. Fourth quarter Adjusted Net Income, a non-GAAP financial measure defined below, totalled $110m, or $1.24 per diluted share, which compares to Adjusted Net Income in the prior year period of $97m, or $1.09 per diluted share.
Fourth quarter US GAAP operating income was $106m, compared to $112m in the prior year period. Adjusted Operating Income, a non-GAAP financial measure defined below, was $164m, compared to $133m in the prior year period. Adjusted Operating Income margin increased 110 basis points in the fourth quarter of 2017 to 12.7%, compared with 11.6% in the prior year period, resulting from the continued above-market growth of our businesses and the impact of cost reduction initiatives, including our continuing rotation to best cost manufacturing locations, partially offset by continued investments for growth. Depreciation and amortisation expense (including asset impairment charges) totalled $57m in the fourth quarter as compared to $52m in the prior year period.
Interest expense for the fourth quarter totalled $13m, as compared to less than $1m in the prior year period, which reflects the interest related to the issuance of $1,550m of debt in connection with the separation from the former parent.
US GAAP tax expense in the fourth quarter of 2017 was $27m, resulting in an effective tax rate of approximately 30%. This compares to US GAAP tax expense of $23m, or an effective tax rate of approximately 21%, in the prior year period. The increase in the effective tax rate reflects the impacts of discrete items and separation related activities.
The company generated net cash flow from operating activities of $95m in the fourth quarter, compared to $68m in the prior year period.
Full year 2017 results
For full year 2017, Delphi Technologies reported revenue of $4.8bn, an increase of 8% from the prior year, reflecting continued volume growth. Adjusted for currency exchange, and certain aftermarket original equipment service revenue retained by the former parent, revenue increased by 9% during the year. This reflects growth of 10% in Powertrain Systems and 6% in Delphi Technologies Aftermarket. It also reflects growth of 24% in Asia Pacific, 5% in North America, 2% in Europe and 13% in South America.
For full year 2017, the company reported US GAAP net income of $285m and $3.21 per diluted share, compared to $236m and $2.66 per diluted share in the prior year. Full year 2017 Adjusted Net Income totalled $457m, or $5.15 per diluted share compared to Adjusted Net Income in the prior year of $421m, or $4.75 per diluted share.
The company reported US GAAP operating income of $446m, compared to $320m in the prior year. For the full year 2017, Adjusted Operating Income was $637m, compared to $512m in the prior year. Adjusted Operating Income margin was 13.1% for full year 2017, an improvement of 170 basis points, compared with 11.4% in the prior year, resulting from the continued above-market growth of our businesses and the impact of cost reduction initiatives, including our continuing rotation to best cost manufacturing locations, partially offset by continued investments for growth. Depreciation and amortisation expense totalled $201m as compared to $210m in the prior year.
Interest expense for full year 2017 totalled $15m, an increase from $1m in the prior year, which reflects the interest related to the issuance of $1,550m of debt in connection with the separation from the former parent.
US GAAP tax expense for full year 2017 was $106m, resulting in an effective tax rate of approximately 25%. This compares to $50m, or an effective tax rate of approximately 16%, in the prior year. The increase in the effective tax rate reflects the impacts of discrete items and separation related activities.
The company generated net cash flow from operating activities of $389m in 2017. As of December 31, 2017, the Company had cash and cash equivalents of $338m and total debt of $1.5bn.
