Aptiv doubles Q1 net income amid price hikes

Automotive technology supplier Aptiv on Thursday said net income doubled and revenues grew 15 percent in the first quarter as the company benefited from price hikes that offset ongoing supply and production constraints.

The company said first-quarter net income doubled to $146 million while revenue grew to $4.8 billion.

Suppliers across the board, hobbled by fears of a looming recession, have been passing on rising costs for labor, freight and raw materials to their customers.

Aptiv CEO  Kevin Clark told analysts in February that the company has been negotiating price increases with its clients through 2022 and intends to continue the conversations in 2023.

"We had a strong start to the year with record revenue and near-record bookings in the first quarter, underscoring Aptiv's increasing competitive differentiation and strategic value to our customers as the industry transitions further towards the fully-electrified, software-defined vehicle," Clark said in a statement.

"Bolstered by our recent acquisitions of Wind River and Intercable Automotive, we continue to gain commercial traction across our portfolio, particularly in our smart vehicle architecture and high voltage platforms. Combined with our relentless focus on execution and operational excellence, we remain confident in our ability to deliver on our outlook for 2023."

Aptiv, which is domiciled in Dublin with its operational headquarters in Troy, Mich., beat analysts estimates for revenue and earnings per share.

Shares in Aptiv fell 8 percent to $91.82 in Thursday morning trading in New York.

Reuters contributed to this report.