DETROIT -- Electronics supplier Aptiv said on Thursday that the UAW’s 40-day strike against General Motors hit its fourth-quarter revenue and profits.
The company said it lost $130 million in revenue in the fourth quarter and $200 million for the full year due to the strike, which stretched from the latter part of the third quarter and into the fourth.
Aptiv said revenue for the quarter fell 1 percent to $3.6 billion, while adjusted operating income dropped 9.8 percent to $388 million from last year’s period, representing a loss of about $80 million from the strike.
Net income fell 6.9 percent for the quarter to $230 million.
For all of 2019, revenue fell 1 percent to $14.4 billion while adjusted operating income fell 11 percent to $1.55 billion. Aptiv said the operating income decrease includes adverse impacts of about $110 million from the strike.
Net income dropped 7.2 percent for the year to $990 million.
Shares in Aptiv fell 2.4 percent to close the day at $87.68.
Aptiv said ramping up new launches and acquisition contributions helped bolster sales amid the impact of the strike.
The company said the growth of high-voltage electrification in Europe and China, and commercial vehicles and industrial end market revenue – including its acquisition of Winchester Interconnect – were also sales growth drivers.
Aptiv forecast first-quarter sales of $3.47 billion to $3.57 billion and full-year sales of $14.5 billion to $14.9 million.
The company said it expects first-quarter adjusted operating income of $303 million to $328 million. The supplier expects full-year adjusted operating income of $1.67 billion to $1.77 billion.
CEO Kevin Clark told investors in a call Thursday that despite industry volumes declining, he sees potential in the supplier's advanced safety and user experience division based on continued strong consumer demand for active safety products.
“Consumers are demanding safer vehicles and OEMs are responding, accelerating the development of advanced safety systems,” Clark said.
Aptiv, of Dublin, ranks No. 20 on the Automotive News list of the top 100 global suppliers, with worldwide sales to automakers of $12.87 billion in 2018.