Delphi Q2 earnings climb on higher margins
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DETROIT (Reuters) -- Delphi Automotive Plc reported a boost in second-quarter earnings on the strength of improving pre-tax margins.
The diversified supplier of electronics, powertrain, safety, thermal and other components, in a statement Tuesday, said it posted second-quarter net income of $330 million, or $1.01 a share, compared with earnings of $298 million, or 88 cents a share, during the same quarter least year.
Revenue grew 1.3 percent to $4.0 billion when adjusted for currency exchanges and other factors, the company said.
Analysts had expected earnings of 91 cents per share.
Earnings before interest, taxes, depreciation and amortization were a record $581 million for the quarter, up 6.8 percent from $544 million the previous year. Delphi said EBITDA margin of 14.5 percent also was a record for the quarter, well above last year's 12.9 percent.
The company, citing an "improved margin outlook," lifted its full-year per-share earnings forecast to $3.68 to $3.91 and reaffirmed its full-year EBITDA forecast of $2.175 billion to $2.250 billion. Previously Delphi had forecast earnings per share of $3.63 to $3.85.
Delphi CEO Rodney O'Neal said: "We remain confident that even in this challenging macro-environment, we are well positioned to generate significant cash flow and increase profitability."
In a note to investors, JPMorgan analysts wrote that Delphi's margin gains are "years ahead of schedule," noting Delphi previously had targeted a pre-tax margin of 15 percent by 2015.
Delphi ranks No. 10 on the Automotive News Europe list of the top 100 global suppliers with worldwide sales to automakers of $16 billion in 2011. Europe accounted for 45 percent of that total.
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