Aptiv PLC (NYSE: APTV), a global technology company enabling the future of mobility, today reported first quarter 2019 U.S. GAAP earnings of $0.92 per diluted share. Excluding special items, first quarter earnings totaled $1.05 per diluted share.
First Quarter Highlights Include:
- Revenue of $3.6 billion, up 4% adjusted for currency exchange, commodity movements and divestitures
- U.S. GAAP net income of $240 million, diluted earnings per share of $0.92
Excluding special items, earnings of $1.05 per diluted share - U.S. GAAP operating income margin of 8.3%
Adjusted Operating Income margin of 9.7%; Adjusted Operating Income of $345 million - Generated $84 million of cash from operations
- Returned $283 million to shareholders through share repurchases and dividends
“Our stronger than expected first quarter performance reflects our portfolio of leading technologies aligned to the safe, green and connected mega trends, driving sustained above-market growth,” said Kevin Clark, president and chief executive officer. “While our revised outlook for the year reflects softer global vehicle production and further headwinds from foreign exchange and commodities compared to our prior guidance, we continue to see the benefits of our flexible operating model and technology portfolio position us well for outperformance as these headwinds mitigate in the back half of the year and into 2020. Our mission to be our customers’ partner of choice, uniquely providing the brain and nervous system of the vehicle, has created a sustainable business advantage for Aptiv, which in turn allows us to deliver long-term value to our shareholders through innovation, effective execution, profitable growth, strong cash flow generation and disciplined capital deployment.”
First Quarter 2019 Results
The Company reported first quarter 2019 revenue of $3.6 billion, a decrease of 2% from the prior year period. Adjusted for currency exchange, commodity movements and divestitures, revenue increased by 4% in the first quarter. This reflects growth of 7% in North America and 6% in Europe, partially offset by a decline of 12% in South America and 1% in Asia, which includes a decline of 12% in China.
The Company reported first quarter 2019 U.S. GAAP net income of $240 million and earnings of $0.92 per diluted share, compared to $307 million and $1.15 per diluted share in the prior year period. First quarter Adjusted Net Income, a non-GAAP financial measure defined below, totaled $273 million, or $1.05 per diluted share, compared to $343 million, or $1.29 per diluted share, in the prior year period.
First quarter Adjusted Operating Income, a non-GAAP financial measure defined below, was $345 million, compared to $427 million in the prior year period. Adjusted Operating Income margin was 9.7%, compared to 11.8% in the prior year period, reflecting the unfavorable impacts of foreign currency exchange, vehicle production declines in China and continued incremental investments for growth, partially offset by above-market sales growth. Depreciation and amortization expense totaled $173 million, an increase from $155 million in the prior year period, reflecting increases related to our acquisitions and capital investments.
Interest expense for the first quarter totaled $38 million, as compared to $34 million in the prior year period, which reflects the impacts of our debt refinancing transactions in the first quarter of 2019.
Tax expense in the first quarter of 2019 was $33 million, resulting in an effective tax rate of approximately 12%, compared to $59 million, or an effective rate of approximately 16%, in the prior year period. The decrease in the effective tax rate reflects the geographic mix of pretax earnings and the impact of favorable discrete items.
The Company generated net cash flow from operating activities of $84 million in the first quarter. As of March 31, 2019, the Company had cash and cash equivalents of $321 million and total available liquidity of $2.1 billion.
Reconciliations of Adjusted Net Income, Adjusted Net Income Per Share, Adjusted Operating Income and Cash Flow Before Financing, which are non-GAAP measures, to the most directly comparable financial measures, respectively, calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”) are provided in the attached supplemental schedules.
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SOURCE: Aptiv
