Delphi Automotive says its priority is to create shareholder value as it reviewed its stellar 2011 financial results and looked to supply technology to reduce appalling global road deaths.
The US component supplier recently reported full year net income up 16.1% to US$1.1bn, while Q4 2011 revenue was US$3.9bn, an increase of 6.8%, with fourth quarter net income of US$290m.
“My priority for the future is to create shareholder value,” said Delphi CEO Rodney O’Neal, speaking at this week’s investors meeting. “We have – and will continue – to build a very robust pipeline to allow us to capitalise on our strengths.
“We will leverage our leading position in emerging markets. Delphi has come off one heck of a year [and] is completely focused on growing the top and bottom line. We have the lowest cost structure in the industry – it cannot be duplicated – it cannot be.”
Continuing the upbeat tone, Delphi chief technical officer, Jeff Owens, pointed to US$60bn of business booked for the supplier during the past three years – “an absolute record” – as well as the company’s ability to solve complex issues including those emanating from Federal regulations.
“Never has government regulation been more stringent and customers’ demands more,” said Owens. “They look to a supplier that can provide real world solutions – that is our lifeblood at Delphi.
“Your car is most likely the most sophisticated electronic device you own – you may not see it but Delphi handles it. We manufacture more computers than Dell [and] we deliver a billion lines of software code every day.”
Nonetheless, the CTO concedes President Barack Obama’s administration’s goal of achieving 54.5mpg by 2025 will be challenging, comparing the daunting technology involved to the pioneering US space programme of the late 1960s.
“Nobody in the industry knows how they will make that [54.5mpg] happen, how they will achieve that fleet average, but the OEs have to solve that problem,” said Owens. “It is akin to another moonshot for the industry.
The CTO also highlighted the pressing need to reduce global road deaths that were costing economies dear in terms of human life and financial cost.
“Last year there were 33,000 fatalities in the US, 40,000 in Europe and 100,000 in China,” said Owens. “That is US$230bn of social cost between accidents and fatalities in the US – that is a huge waste.”
Delphi reported 2011 revenue of US$16bn, an increase of 16.1% compared to 2010.
Full year 2011 net income totalled US$1.1bn, compared to net income of US$631m.
Full year 2011 EBITDA was US$2.1bn, an increase of US$758m compared to US$1.4bn reported in 2010.