Delphi Automotive has reported third quarter 2015 U.S. GAAP earnings from continuing operations of $1.23 per diluted share. Excluding special items, third quarter earnings from continuing operations totaled $1.28 per diluted share.
“Delphi’s flexible business model delivered solid performance with revenue growth and expanded margins, despite headwinds in some global markets,” said Kevin Clark, president and CEO. “We remain focused on excellent execution and enhancing our portfolio in high-growth areas, which will continue to drive growth and shareholder value going forward.”
The company reported third quarter 2015 revenue of $3.6 billion, a decline of 3 percent from the prior year period, reflecting unfavorable currency impacts, which offset continued volume growth, principally in North America and Europe. Adjusted for currency exchange, commodity movements and the divestiture of the company’s Reception Systems business, revenue increased by 6 percent in the third quarter. This reflects growth of 9 percent in North America, 6 percent in Europe and 5 percent in Asia, partially offset by a decline of 20 percent in South America.
The company reported third quarter 2015 U.S. GAAP net income from continuing operations of $351 million and earnings from continuing operations of $1.23 per diluted share, compared to $299 million and $1 per diluted share in the prior year period.
Also during the third quarter of 2015, the company closed the sale of its interest in its Korea Delphi Automotive Systems Corporation (KDAC) joint venture for net cash proceeds of $70 million, and recognized an after-tax gain on the divestiture of $47 million within income from discontinued operations. In the first quarter of 2015, the company recorded an $88 million non-cash impairment loss related to its interest in KDAC within income from discontinued operations.
Year-to-Date 2015 Results
For the nine months ended Sept. 30, 2015, the company reported revenue of $11.3 billion, a decline of 4 percent from the prior year period, reflecting unfavorable currency impacts, which offset continued volume growth in Asia and North America. Adjusted for currency exchange, commodity movements and the divestiture of the company’s Reception Systems business, revenue increased by 5 percent during the period. This reflects growth of 9 percent in Asia, 7 percent in North America and 4 percent in Europe, partially offset by a decline of 17 percent in South America.
For the 2015 year-to-date period, the company reported U.S. GAAP net income from continuing operations of $989 million and earnings from continuing operations of $3.43 per diluted share, compared to $969 million and $3.19 per diluted share in the prior year period.
Acquisition of Control-Tec
Delphi has further expanded its portfolio of technology solutions by agreeing to acquire Control-Tec LLC, a leading provider of telematics and cloud-hosted data analytics solutions. Control-Tec’s software provides a complete end-to-end, customizable and real-time data analytics solution that analyzes vehicle testing events during the late stages of product development. This technology allows OEMs to reduce testing cycles, meet launch schedules and reduce warranty exposure. The acquisition of Control-Tec will allow Delphi to provide even greater support to its global OEM customers that face increased challenges through greater vehicle complexity and heightened regulations as they launch new products.
Share Repurchase Program
During the third quarter of 2015, Delphi repurchased 5.29 million shares for approximately $406 million under its existing authorized share repurchase program, leaving approximately $707 million available for future share repurchases. Year-to-date, the company has repurchased 12.17 million shares for approximately $959 million. All repurchased shares were retired, and are reflected as a reduction of ordinary share capital for the par value of the shares, with the excess applied as reductions to additional paid-in-capital and retained earnings.
