Delphi Automotive cut its 2015 profit and sales forecasts to below analysts' estimates as China's vehicle market slows.
Delphi posted a 32 percent increase in third-quarter net income, with operating results narrowly outpacing Wall Street expectations, but the supplier reduced its full-year guidance as global market pressures, including a notable slowdown in China, cast a cloud over its outlook.
The U.S. auto-parts supplier posted third-quarter net profits of $404 million, or $1.42 a share, up from $305 million, or $1.02 a share, a year ago. The company's quarterly operating earnings of $1.28 a share came in above the $1.27 expected by analysts.
Revenue dropped 3.5 percent to $3.6 billion during the period as divestitures, unfavorable currency exchange rates and changes in commodity prices weighed on results. Without currency exchange effects, commodities and divestitures, Delphi said in a statement that revenue grew 6 percent.
The company's shares declined 6.8 percent to $80.31 at 11:57 a.m. ET in New York trading after sliding as much as 7.2 percent for the biggest intraday drop since Aug. 24. Through Wednesday, the stock had risen 18 percent this year.
Delphi said it expects 2015 profit of $5.15 to $5.25 a share, down from its earlier outlook of as much as $5.40. The average of estimates compiled by Bloomberg was $5.30.
The company also trimmed its 2015 sales forecast to as much as $15.1 billion from $15.6 billion. The average projection was $15.3 billion.
The revisions are probably tied to slowness in Delphi's sales in China, said David Leiker, an analyst at R.W. Baird & Co.
Delphi said on a conference call that the Chinese market is weaker than it was when the company reported second-quarter results.
The former auto-parts unit of General Motors has been trying to reduce its dependency on the U.S. market since exiting bankruptcy in 2009. Delphi got about 23 percent of sales last year from the Asia-Pacific region, up from 16 percent in 2010.
Bloomberg contributed to this report