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Delphi Reports Third Quarter 2012 Financial Results

Conference Call and Webcast

The Company will host a conference call to discuss these results at 9:00 a.m. (ET) today, which is accessible by dialing 888.486.0553 (US domestic) or 706.634.4982 (international) or through a webcast at http://delphi.com/investors. The conference ID number is 37602040. A slide presentation will accompany the prepared remarks and has been posted on the investor relations section of the Company's website. A replay will be available two hours following the conference call.

Use of Non-GAAP Financial Information

This press release contains information about Delphi's financial results which are not presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures at the end of this press release. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures of other companies.

About Delphi

Delphi is a leading global supplier of electronics and technologies for automotive, commercial vehicle and other market segments. Operating major technical centers, manufacturing sites and customer support facilities in 30 countries, Delphi delivers real-world innovations that make products smarter and safer as well as more powerful and efficient. Connect to innovation at www.delphi.com .

FORWARD-LOOKING STATEMENTS

This press release, as well as other statements made by Delphi Automotive PLC (the “Company”), contain forward-looking statements that reflect, when made, the Company's current views with respect to current events and financial performance. Such forward-looking statements are subject to many risks, uncertainties and factors relating to the Company's operations and business environment, which may cause the actual results of the Company to be materially different from any future results. All statements that address future operating, financial or business performance or the Company's strategies or expectations are forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements are discussed under the captions “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in the Company's filings with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. It should be remembered that the price of the ordinary shares and any income from them can go down as well as up. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise, except as may be required by law.

 
DELPHI AUTOMOTIVE PLC
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
 
    Three Months Ended   Nine Months Ended
September 30, September 30,
2012   2011 2012   2011
(in millions, except

per share amounts)

(in millions, except

per share amounts)

Net sales $ 3,663 $ 3,931 $ 11,752 $ 12,141
Operating expenses:
Cost of sales 3,058 3,294 9,703 10,165
Selling, general and administrative 215 222 673 667
Amortization 20 19 60 56
Restructuring 3   3   17   20  
Total operating expenses 3,296   3,538   10,453   10,908  
Operating income 367 393 1,299 1,233
Interest expense (32 ) (37 ) (100 ) (84 )
Other income (expense), net 3   14   15   13  
Income before income taxes and equity income 338 370 1,214 1,162
Income tax expense (52 ) (87 ) (227 ) (276 )
Income before equity income 286 283 987 886
Equity income, net of tax 6   2   18   25  
Net income 292 285 1,005 911
Net income attributable to noncontrolling interest 23   19   64   56  
Net income attributable to Delphi $ 269   $ 266   $ 941   $ 855  
Diluted net income per share:
Diluted net income per share attributable to Delphi $ 0.84   $ 0.79   $ 2.89   $ 1.89  
Weighted average number of diluted shares outstanding 321.28   336.83   325.28   452.58  
 
DELPHI AUTOMOTIVE PLC
CONSOLIDATED BALANCE SHEETS
 

 

   

September 30, 2012

  December 31, 2011
(unaudited)
(in millions)
ASSETS
Current assets:
Cash and cash equivalents $ 1,634 $ 1,363
Restricted cash 11 9
Accounts receivable, net 2,540 2,459
Inventories 1,121 1,054
Other current assets 591   616
Total current assets $ 5,897 $ 5,501
Long-term assets:
Property, net 2,466 2,315
Investments in affiliates 222 257
Intangible assets, net 548 596
Other long-term assets 506   459
Total long-term assets 3,742   3,627
Total assets $ 9,639   $ 9,128
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt $ 92 $ 107
Accounts payable 2,244 2,397
Accrued liabilities 1,334   1,208
Total current liabilities 3,670 3,712
Long-term liabilities:
Long-term debt 1,998 1,996
Pension benefit obligations 694 674
Other long-term liabilities 407   575
Total long-term liabilities 3,099   3,245
Total liabilities 6,769   6,957
Commitments and contingencies
Total Delphi shareholder's equity 2,406 1,688
Noncontrolling interest 464   483
Total shareholders’ equity 2,870   2,171
Total liabilities and shareholders’ equity $ 9,639   $ 9,128
 
DELPHI AUTOMOTIVE PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
 
    Nine Months Ended
September 30,
2012   2011
(in millions)
Cash flows from operating activities:
Net income $ 1,005 $ 911
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 340 356
Deferred income taxes 18 17
Income from equity method investments, net of dividends received 8 (15 )
Other, net 34 3
Changes in operating assets and liabilities:
Accounts receivable, net (87 ) (334 )
Inventories (69 ) (156 )
Accounts payable (22 ) 185
Other, net (17 ) (7 )
Pension contributions (42 ) (51 )
Net cash provided by operating activities 1,168   909  
Cash flows from investing activities:
Capital expenditures (563 ) (454 )
Maturity of time deposits 550
Proceeds from sale of property / investments 18 64
Cost of acquisitions, net of cash acquired (17 )
(Increase) decrease in restricted cash (2 ) 37
Acquisition of minority held shares (16 ) (5 )
Dividends from equity method investments in excess of earnings 37
Other, net    
Net cash (used in) provided by investing activities (526 ) 175  
Cash flows from financing activities:
(Decrease) increase in short and long-term debt, net (21 ) 1,759
Dividend payments of consolidated affiliates to minority shareholders (39 ) (29 )
Repurchase of ordinary shares (300 )
Redemption of membership interests   (4,638 )
Net cash used in financing activities (360 ) (2,908 )
Effect of exchange rate fluctuations on cash and cash equivalents (11 ) (9 )
Increase (decrease) in cash and cash equivalents 271 (1,833 )
Cash and cash equivalents at beginning of period 1,363   3,219  
Cash and cash equivalents at end of period $ 1,634   $ 1,386  
 
DELPHI AUTOMOTIVE PLC
FOOTNOTES
(unaudited)
1. Segment Summary
 
    Three Months Ended     Nine Months Ended
September 30, September 30,
2012   2011   % 2012   2011   %
(in millions) (in millions)

Net sales

Electrical/Electronic Architecture $ 1,607 $ 1,658 (3 )% $ 5,049 $ 5,012 1 %
Powertrain Systems 1,087 1,183 (8 )% 3,597 3,729 (4 )%
Electronics and Safety 648 719 (10 )% 2,092 2,245 (7 )%
Thermal Systems 374 431 (13 )% 1,192 1,353 (12 )%
Eliminations and Other (a) (53 ) (60 ) (178 ) (198 )
Net sales $ 3,663   $ 3,931   $ 11,752   $ 12,141  
 

EBITDA

Electrical/Electronic Architecture $ 210 $ 233 (10 )% $ 708 $ 690 3 %
Powertrain Systems 169 167 1 % 571 487 17 %
Electronics and Safety 78 81 (4 )% 269 279 (4 )%
Thermal Systems 23 35 (34 )% 91 133 (32 )%
Eliminations and Other (a)        
EBITDA $ 480   $ 516   $ 1,639   $ 1,589  
 
(a) Eliminations and Other includes the elimination of inter-segment transactions.
 

2. Weighted Average Number of Diluted Shares Outstanding

The Company has calculated weighted average number of diluted shares outstanding giving retrospective effect to our corporate conversion (exchange of membership interests for ordinary shares and consummation of the initial public offering). The impact of these transactions on the weighted average number of diluted shares outstanding for the three and nine months ended September 30, 2011 follows:

 
    Three Months Ended September 30,   Nine Months Ended September 30,
2012   2011 2012   2011
(in millions, except per share data)
Weighted average ordinary shares outstanding as result of the initial public offering n/a 328.24 n/a 328.24
Redemption of Class A & C membership interests n/a

n/a

116.40
Repurchase of Class B membership interests n/a 8.59   n/a 7.94
Weighted average ordinary shares outstanding for the period 321.28   336.83   325.28   452.58
 
Net income attributable to Delphi $ 269   $ 266   $ 941   $ 855
Diluted earnings per share $ 0.84   $ 0.79   $ 2.89   $ 1.89
 

DELPHI AUTOMOTIVE PLC RECONCILIATION OF NON-GAAP MEASURES (unaudited)

In this press release the Company has provided information regarding certain non-GAAP financial measures, including "EBITDA" and "cash flow before financing". Such non-GAAP financial measures are reconciled to their closest GAAP financial measure in the schedules below.

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