Delphi Technologies PLC, a global leader in vehicle propulsion, has reported second quarter 2018 U.S. GAAP earnings of 97 cents per diluted share. Excluding special items, second quarter earnings totaled $1.29 per diluted share. The company also reported revenue of $1.2 billion for the quarter and $2.5 billion for the year-to-date period, an increase of 1 percent and 3 percent compared to the respective equivalent prior period, on an adjusted basis.
Prior to Dec. 4, 2017, Delphi Technologies operated as the Powertrain Systems segment of Delphi Automotive PLC and the historical financial information presented in this press release for periods prior to Dec. 4, 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.
The company has updated its full year outlook for 2018. Revenue is now expected to be in the range of $5 billion to $5.1 billion. Adjusted Operating Income margin is now expected to be in the range of 12.1 percent to 12.3 percent. Adjusted earnings per share is now expected to be in the range of $4.65 to $4.85.
“Our business performed well during the second quarter. While revenue growth moderated, we expanded our operating margin and generated strong operating cash flow. During the first half of the year, we achieved $5.3 billion in bookings in key technologies, which continues to reinforce our confidence in Delphi Technologies’ long-term growth prospects,” said Liam Butterworth, president and CEO for Delphi Technologies. “In addition, I am pleased to announce that our board of directors has approved a new $100 million share repurchase authorization while maintaining our quarterly dividend.”
Second Quarter 2018 Results
The company reported second quarter 2018 revenue of $1.2 billion, an increase of 4 percent from the prior year period. Adjusted for currency exchange and certain aftermarket original equipment service revenue retained by the former parent, revenue increased by 1 percent in the second quarter. The company said this reflects consistent revenue in Powertrain Systems and a decrease of 1 percent in Delphi Technologies Aftermarket. On a regional basis, it also reflects growth of 4 percent in North America, 2 percent in Europe, 6 percent in South America and a decrease of 4 percent in Asia.
Year-to-Date 2018 Results
For the six months ended June 30, 2018, the company reported revenue of $2.5 billion an increase of 7 percent from the prior year period. Adjusted for currency exchange and certain aftermarket original equipment service revenue retained by the former parent, revenue increased by 3 percent during the period. This reflects growth of 2 percent in Powertrain Systems and consistent revenue in Delphi Technologies Aftermarket. On a regional basis, it also reflects growth of 5 percent in North America, 4 percent in Asia, 1 percent in Europe and 6 percent in South America.
Share Repurchase Authorization
As part of the company’s balanced capital allocation strategy, the board of directors has approved a $100 million share repurchase authorization, while maintaining the quarterly dividend. The timing and amount of any share repurchases will be based on market conditions, share price and other factors.