Delphi Technologies has reported first quarter 2018 U.S. GAAP earnings of $1.10 per diluted share. Excluding special items, first quarter earnings totaled $1.30 per diluted share. The company also reported revenue of $1.3 billion for the quarter, an increase of 5 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 here for periods prior to Dec. 4, 2017 were derived from the former parent company’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.
First quarter highlights include:
- Revenue of $1.3 billion, up 5 percent(*) year-over-year
- U.S. GAAP net income of $98 million, diluted earnings per share of $1.10
- Excluding special items, earnings of $1.30 per diluted share
- U.S. GAAP operating income of $138 million, or 10.6 percent margin
- Adjusted operating income of $159 million, or 12.3 percent margin
- Generated $75 million of cash from operating activities
- Quarterly dividend payment of $15 million
(*) Adjusted for currency exchange and certain aftermarket revenue retained by the former parent
Full year outlook raised
The company has raised its full year outlook for 2018. Revenue is now expected to be in the range of $5 billion to $5.2 billion, up $100 million from the company’s prior outlook range. Adjusted operating income margin is now expected to be in the range of 12.3 percent to 12.5 percent, up 10 basis points from the company’s prior outlook range. Adjusted earnings per share is now expected to be in the range of $4.65 to $4.95, up 15 cents from the company’s prior outlook range.
CEO comments
“Delphi Technologies had a strong start to 2018. We delivered 5 percent revenue growth, underlying margin expansion and have raised our full year outlook. We continue to have robust bookings momentum in key technologies that will support our long-term growth. Led by our industry-leading portfolio, focused on solving our customers most complex propulsion challenges, we saw $3 billion of bookings in the first quarter,” said Liam Butterworth, president and CEO for Delphi Technologies. “In our first full quarter as a public company, we also made strong operational progress. Our teams remain highly focused on disciplined execution and pioneering innovation across the range of propulsion technologies in order to consistently deliver value to our customers and shareholders.”
First quarter 2018 results
The company reported first quarter 2018 revenue of $1.3 billion, an increase of 11 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 5 percent during the period. This reflects growth of 4 percent in Powertrain Systems and 1 percent in Delphi Technologies Aftermarket. It also reflects growth of 11 percent in Asia, 6 percent in North America, 6 percent in South America and relatively flat performance in Europe.
The company reported first quarter 2018 U.S. GAAP net income of $98 million and net income of $1.10 per diluted share, compared to $103 million and $1.16 per diluted share in the prior year period. First quarter Adjusted net income totaled $116 million, or $1.30 per diluted share, which compares to Adjusted net income in the prior year period of $116 million, or $1.31 per diluted share.
First quarter U.S. GAAP operating income was $138 million, compared to $148 million in the prior year period. Adjusted operating income was $159 million, compared to $162 million in the prior year period. Adjusted operating income margin in the first quarter of 2018 was 12.3 percent, compared to 13.9 percent in the prior year period. The decline was primarily due to the absence of a commercial settlement that benefited the first quarter of 2017 and, to a lesser degree, spin-related costs associated with becoming a stand-alone public company. Depreciation and amortization expense (including asset impairment charges) totaled $50 million in the first quarter as compared to $48 million in the prior year period.
