Delphi’s net income falls as CEO considers acquisition
Delphi Automotive on Thursday reported its first-quarter net income fell about 34 percent to $209 million as CEO Kevin Clark said the company was considering acquisitions in the $2 billion range.
The England-based auto supplier with a large operational base in Troy said its first-quarter revenue fell 2.6 percent to $3.8 billion. Adjusting for currency exchange and commodity changes, Delphi said revenue would have grown 6 percent from a year ago.
Operating income rose slightly to $446 million from $440 million a year ago.
Delphi earned 72 cents a share in the first quarter, down from $1.04 a share a year earlier. Not including special items, first-quarter earnings were 99 cents per share, down from $1.01 a share a year earlier.
“Delphi’s strong financial results demonstrate that the disciplined execution of our strategy is resulting in solid operating growth,” Kevin Clark, president and CEO, said in a statement. “Additionally, the sale of our Thermal Division has unlocked value for our shareholders and will help fuel a focused, high-growth product portfolio that capitalizes on industry trends in safe, green and connected content going forward.”
Clark said Delphi would consider an acquisition of as much as $2 billion in value and is actively looking at such deals.
Such a deal wouldn’t be “transformative,” Clark said, but he said they are “always actively looking” at deals.
During the first quarter, Delphi agreed to sell its thermal systems business to Mahle GmbH for about $727 million. The sale is expected to close in the third quarter, Delphi said.
For the full year, Delphi expects to have revenue of between $15.3 billion and $15.7 billion, with an operating margin of between 12.9 percent and 13.2 percent.
Delphi shares closed up 1.3 percent to $83 Thursday.
Bloomberg News contributed.