Supplier Aptiv said the late 2019 General Motors UAW contract strike had adversely affected its fourth quarter 2019 profits of US$0.90 per share ($1.15 excluding special items) by about $0.28 per share.
Revenue dipped 1% year on year to $3.6bn, a decrease of 1%, increased 2% adjusted for currency exchange, commodity movements and divestitures but was adversely impacted by about $130m by the GM strike, the supplier said.
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Net income was $230m and the operating income margin was 9%.
Adjusted operating income margin was 10.8% and adjusted operating income of $388m included adverse strike impacts of about $80m.
Full year 2019 revenue slipped 1% to $14.4bn, but was up 4% adjusted for currency exchange, commodity movements and divestitures and adversely affected by around $200m by the GM strike.
Net income was $990m with earnings per share of $3.85. Excluding special items, EPS was $4.80, adversely affected by the strike by $0.38.
Full year operating income margin was 8.9% or 10.8% adjusted and affected by $110m by the GM labour dispute.
Adjusted operating income was $1,548m.
President and CEO Kevin Clark said Aptiv booked new business wins worth $22bn in 2019.
“We enhanced the long-term competitiveness of our business model by continuing to reduce overhead costs and reinvest those savings in the development of advanced technologies. We also continued our track record of value-enhancing and balanced capital deployment, investing in acquisitions and returning approximately $650m of cash to shareholders.”
The supplier forecast Q1 2020 sales of $3,470m-$3,570m and $14,500m-$14,900m for the full year, adjusted operating income of $303m-$328m for Q1 and $1,670m-$1,770m for the full year, adjusted operating income margin of 8.7%-9.2% (Q1) and 11.5%-11.9% (full year) and adjusted income per share of $0.86-$0.94 and $4.75-$5.05 for the first quarter and full year respectively.
