Delphi Technologies has posted a first-quarter operating loss of US$20m compared to operating income of US$55m in the prior year period.
Revenue decreased 18% to US$945m from Q1, 2019, with the decline primarily due to lower global production and the closure of customer production sites related to COVID-19.
The downward trend in passenger car diesel fuel injection systems in Europe was partially offset by solid growth in advanced gasoline direct injection fuel systems.
On a regional basis, adjusted revenue reflects decreases of 20% in Europe, 23% in North America, and 15% in South America, partially offset by an increase of 6% in Asia Pacific, including an increase of 12% in China.
“In the face of unprecedented uncertainty and a significant decline in global production, I am pleased with our strong revenue outgrowth and cash flow performance in Q1,” said Delphi Technologies CEO, Richard Dauch.
“During the COVID-19 pandemic, our focus has and continues to be on the safety of our people, customers and suppliers and on adhering to government directives, while taking the necessary actions to navigate the significant shorter-term impacts to our industry. Our restructuring initiatives and footprint consolidation plans are ahead of schedule, allowing us to accelerate our cost savings and preserve cash.”
“We are pleased to be proceeding with the transaction with BorgWarner which we continue to believe delivers clear benefits to all Delphi Technologies stakeholders, particularly in light of the current market and macroeconomic environment.
“The combination will create a company equipped to serve both OEM and aftermarket customers. Together we will be able to address market trends toward electrification while satisfying the ongoing demand for clean, efficient, combustion technologies.”