Delphi Technologies has reported third-quarter revenue down 11% to US$1bn, while operating income fell from US$81m to US$45m.
The supplier says the decline was primarily due to lower global production, particularly in China, downward trend in passenger car diesel fuel injection systems in Europe and closure of certain customer production sites in North America.
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“Consistent with our first half performance, our Q3 results were impacted by ongoing industry and macro headwinds,” said Delphi Technologies CEO, Richard Dauch. “While we continue to make solid progress in a number of key operational and commercial areas, we must act with increased urgency to improve our financial performance.
“Today we have announced a fundamental transformation plan, which is a direct response to the major transitions and challenges our industry faces, consistent with our priority to realign and reshape Delphi Technologies for future profitable growth.
“This important and necessary step is expected to reduce our annualised costs by more than US$150m over the next three years, while significantly improving our free cash flow and return on invested capital.”
