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Delphi Automotive (NYSE: DLPH), a leading global vehicle components manufacturer providing electrical and electronic, powertrain, safety and thermal technology solutions to the global automotive and commercial vehicle markets, today reported third quarter 2012 revenues of $3.7 billion, a decrease of 6.8% from the prior year period, the result of further reductions in European production and a significant weakening of the Euro and Brazilian Real. Adjusted for the impacts of currency exchange, commodity movements and divestitures, revenue was flat in the third quarter. The Company reported third quarter net income of $269 million and diluted earnings per share of $0.84, compared to $266 million and $0.79 per diluted share in the prior year period.
“Delphi's third quarter earnings growth demonstrates the benefits of our lean and flexible cost structure in the face of a difficult macroeconomic environment, particularly in Europe where vehicle production levels have weakened further," said Rodney O'Neal, chief executive officer and president.
Third Quarter 2012 Results
The Company reported third quarter 2012 revenue of $3.7 billion, essentially flat compared to the third quarter of 2011, adjusting for currency exchange, commodity movements and divestitures. Adjusted revenue reflects growth of 12% in Asia and 3% in North America, offset by a 6% decline in Europe and a 5% decline in South America.
Third quarter net income totaled $269 million, or $0.84 per diluted share, which includes the impacts of a lower effective tax rate, share repurchases in 2012, and a $0.05 per share impact from the increased expense resulting from the variable accounting related to the Company's 2010 Long-Term Incentive Plan. Net income in the prior year period was $266 million, or $0.79 per diluted share (refer to footnote 2 for determination of weighted average shares outstanding and earnings per share calculations).
Third quarter earnings before depreciation and amortization, interest expense, other income (expense), income tax expense, and equity income (“EBITDA”) was $480 million, compared to $516 million in the prior year period. EBITDA margin was 13.1% in the third quarter of 2012, consistent with 13.1% in the prior year period. The reduction in EBITDA reflects the unfavorable impacts of currency exchange, $21 million of increased expense resulting from the variable accounting impacts related to the Company's 2010 Long-Term Incentive Plan, and the continuing volume reductions in Europe. Excluding the variable impacts of the 2010 Long-Term Incentive Plan, EBITDA margin for the third quarter of 2012 was 13.7%.