Delphi profits jump on higher N.A., Asia parts demand
DETROIT (Reuters) -- Delphi Automotive Plc reported a 16 percent rise in first-quarter profits, helped by strong auto parts demand in Asia and North America. The automotive supplier also raised its 2014 earnings outlook.
Net income rose to $320 million, or $1.04 a share, in the first quarter ended March 31, from $276 million, or $0.88 a share, in the year earlier period, Delphi said today.
Excluding one-time items, Delphi earned $1.20 a share, trumping the average analyst estimate of $1.08 a share.
Revenue rose 6 percent to $4.28 billion but fell slightly short of the average estimate of $4.29 billion.
The company said it now expects 2014 adjusted earnings of between $4.80 and $5.00 a share, up from its previous forecast of between $4.70 and $4.95 a share.
Analysts on average were expecting earnings of $4.89 a share, according to Thomson Reuters I/B/E/S.
Delphi has been drawn into General Motors' recall of defective ignition switches, which have been linked to at least 13 deaths.
Delphi manufactured the faulty parts and is working with GM to make replacements for 2.6 million recalled cars.
U.S. lawmakers have asked Delphi CEO Rodney O'Neal for information about whether the parts maker pushed back against GM after the automaker apparently did not accept a proposed Delphi fix in 2005 to the switches.
Delphi officials have told investigators that GM approved the bad ignition switches, even though the parts did not appear to meet GM's own specifications.Contact Automotive News