Delphi Automotive PLC has reported first quarter 2016 U.S. GAAP earnings from continuing operations of $1.15 per diluted share. Excluding special items, first quarter earnings from continuing operations totaled $1.36 per diluted share.
“Delphi’s strong quarterly results reflect the execution of our strategy, which delivered solid revenue growth and margin expansion,” said Kevin Clark, president and CEO. “We remain confident in our ability to deliver on our customer and shareholder commitments in 2016 and beyond.”
First Quarter 2016 Results
The company reported first quarter 2016 revenue of $4.1 billion, an increase of 7 percent from the prior year period, reflecting continued volume growth in North America, Europe and Asia Pacific. Adjusted for currency exchange, commodity movements, the acquisition of HellermannTyton Group PLC and the divestiture of the company’s Reception Systems business, revenue increased by 6 percent in the first quarter. This reflects growth of 5 percent in North America, 9 percent in Europe and 8 percent in Asia, partially offset by a decline of 24 percent in South America.
The company reported first quarter 2016 U.S. GAAP net income from continuing operations of $320 million and earnings from continuing operations of $1.15 per diluted share, compared to $288 million and 99 cents per diluted share in the prior year period. First quarter Adjusted Net Income totaled $377 million, or $1.36 per diluted share, which includes the favorable impact of a reduced share count, offset by a higher tax rate compared to the prior year period. Adjusted Net Income in the prior year period was $353 million, or $1.21 per diluted share.
First quarter Adjusted Operating Income was $509 million, compared to $472 million in the prior year period. Adjusted Operating Income margin increased 20 basis points in the first quarter of 2016 to 12.6 percent, compared with 12.4 percent in the prior year period, resulting from the continued growth of Delphi’s businesses in North America, Europe and Asia Pacific, and the impact of successful cost-reduction initiatives, including the company’s continuing rotation to low-cost manufacturing locations in Europe.
Also during the first quarter of 2016, the company completed the final step of the divestiture of its former Thermal Systems business by closing the sale of its interest in the Shanghai Delphi Automotive Air Conditioning joint venture for $99 million, and recognized an after-tax gain on the divestiture of $104 million within income from discontinued operations.
Acquisition of PureDepth
Delphi has further expanded its portfolio of technology solutions by acquiring PureDepth Inc., a provider of multi-layer display technology that enables glasses-less 3-D for cluster and other applications. Delphi’s acquisition of PureDepth will complement and enhance its fully reconfigurable digital display product offerings.
Share Repurchase Program
During the first quarter of 2016, Delphi repurchased 5.6 million shares for approximately $370 million under its existing authorized share repurchase program, leaving approximately $137 million available for future share repurchases. As previously disclosed, the company’s board of directors also authorized a new $1.5 billion share repurchase program, commencing upon the completion of the existing program. 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.
