Delphi CEO steps down after 10 months on the job

Auto supplier Delphi Technologies Plc said on Friday Chief Executive Officer Liam Butterworth was stepping down, more than ten months after taking the post.

The company, which also cut its full-year revenue forecast, said director Hari Nair would be the interim chief and its board has commenced a comprehensive search to identify a permanent CEO.

Delphi said Butterworth was stepping down "to pursue other interests." 

The company's shares plunged 12.9 percent to close at $26.01 on Friday. 

Nair's appointment as the interim chief "points to a transition planned in a hurry," Evercore ISI analyst Chris McNally wrote in a note.

Butterworth had taken the top job in December after Delphi was spun off from Delphi Automotive, now known as Aptiv Plc. Nair has been a director at Delphi since the spin-off.

Nair has previously worked with Tenneco Inc. and General Motors.

"We are pleased that a leader of Hari's caliber and experience has agreed to lead the company on an interim basis," Timothy M. Manganello, nonexecutive board chairman of Delphi, said in the release. "On behalf of the board, I would like to thank Liam for his service and contributions to the company."

The company said it expects full-year revenue growth to be about flat, compared with its previous forecast of up 2 percent to 4 percent.

Delphi, citing challenging industry dynamics, also cut its full-year adjusted operating margin forecast range to 11.3 percent to 11.5 percent, from 12.1 percent to 12.3 percent.

"Investors had clearly anticipated a cut to 2018-2020 numbers on poor global production and lower diesel penetration, but this is much worse than expected," McNally said.

Up to Thursday's close, Delphi's shares had fallen about 41 percent since their listing on the New York Stock Exchange in late November. 

Delphi ranks No. 58 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $3.9 billion in 2017.