Delphi Technologies Reports Results For 4th Quarter And Full Year 2018

Delphi Technologies PLC has reported fourth quarter 2018 U.S. GAAP earnings of $1.52 per diluted share. Excluding special items, fourth quarter earnings totaled $1.06 per diluted share. The company also reported revenue of $1.2 billion for the quarter and $4.9 billion for the full year, a decrease of 5 percent and flat revenue compared to the respective equivalent prior periods, on an adjusted basis.

“2018 was a milestone year for Delphi Technologies. In our first full year as a public company we continued to build on our momentum in key growth technologies, resulting in a record $10 billion of new business awards. Our industry-leading portfolio of technologies are at the heart of the propulsion revolution that enable vehicles to drive cleaner, better and further. We also made great progress in creating a strong foundation as a stand-alone company from which to drive long-term growth,” said Richard Dauch, CEO of Delphi Technologies. “During my first two months as CEO, I have discovered that while 2019 is expected to be another transitional year with slower industry growth, we have an even greater potential to make this good company a great one. However, we clearly need to execute better and with more urgency and discipline to ensure we continue to support our customers and deliver value to our shareholders. Over the coming months, I expect to have a fuller perspective on the actions we will take to drive our operational and financial performance to ensure we capture the long-term profitable growth ahead of us. I look forward to the future with confidence.”

Fourth quarter 2018 results

The company reported fourth quarter 2018 revenue of $1.2 billion, a decrease of 9 percent from the prior year period. Adjusted for currency exchange and certain aftermarket original equipment service revenue retained by the former parent, revenue decreased by 5 percent in the fourth quarter. Adjusted revenue reflects a decrease of 6 percent in Powertrain Systems and growth of 3 percent in Aftermarket. On a regional basis, adjusted revenue also reflects a decrease of 26 percent in Asia Pacific, partially offset by growth of 6 percent in North America, 3 percent in Europe and 16 percent in South America.

The Company reported fourth quarter 2018 U.S. GAAP net income of $135 million and net income of $1.52 per diluted share, compared to $56 million and 63 cents per diluted share in the prior year period. Fourth quarter Adjusted Net Income, totaled $94 million, or $1.06 per diluted share, which compares to Adjusted Net Income in the prior year period of $117 million, or $1.32 per diluted share. The decrease in Adjusted Net Income was primarily due to unfavorable product mix and spin-related costs associated with becoming a stand-alone public company, partially offset by reduced incentive compensation accruals.

Full year 2018 results

For the full year 2018, Delphi Technologies reported revenue of $4.9 billion, flat compared to the prior year. Adjusted for currency exchange, and certain aftermarket original equipment service revenue retained by the former parent, revenue also remained flat during the year. Adjusted revenue reflects a decrease of 1 percent in Powertrain Systems and growth of 1 percent in Aftermarket. On a regional basis, adjusted revenue also reflects a decrease of 10 percent in Asia Pacific, partially offset by growth of 5 percent in North America, 2 percent in Europe and 11 percent in South America.

For the full year 2018, the company reported U.S. GAAP net income of $358 million and $4.03 per diluted share, compared to $285 million and $3.21 per diluted share in the prior year. Full year 2018 Adjusted Net Income totaled $389 million, or $4.38 per diluted share compared to the prior year of $464 million, or $5.23 per diluted share. The decrease in Adjusted Net Income was primarily due to unfavorable product mix, spin-related costs associated with becoming a stand-alone public company and interest expense related to the issuance of debt in 2017. Those items were partially offset by favorable impacts related to operational performance, foreign currency and reduced incentive compensation accruals.

Full year 2019 outlook

The company’s full year 2019 financial outlook is as follows:

(in millions, except per share amounts)