DETROIT -- Delphi Technologies reported a drop in second-quarter net income on lower revenue, decreased production volume and unfavorable currency rates.
Net profit at the powertrain supplier fell 69 percent to $27 million from a year earlier. Adjusted net income decreased 56 percent to $51 million because of lower revenue from higher-margin diesel fuel injection systems, and an increase in revenue from lower-margin advanced gasoline direct injection fuel systems, the supplier said.
Delphi said it was also impacted by lower light-vehicle production and unfavorable currency rates that were primarily offset by improvements in operating performance.
Revenue totaled $1.1 billion during the quarter, a decrease of 9 percent, or a decrease of 5 percent when adjusted for currency exchange rates.
Delphi shares fell 8.1 percent to close the day at $17.22.
Delphi's capital expenditures nearly doubled to $103 million in the second quarter compared with $57 million a year earlier. The company said it is increasing capital expenditures to support key technologies, specifically gasoline direct injection fuel systems and power electronics products.
The company said interest expense decreased to $18 million during the quarter from $19 million a year earlier.
It is the supplier's second second-quarter earnings report since splitting from the former Delphi Automotive in December 2017. Delphi Automotive is now called Aptiv.
Sales at the company's powertrain systems unit fell 11 percent to $971 million, while its aftermarket business remained relatively flat at $214 million.
The company adjusted its full-year outlook for 2019. Changes include lower revenue, adjusted operating income margin and adjusted net income per share. The company also increased its capital expenditures range.
Full-year outlook for 2019:
- Revenue: $4.43 billion to $4.48 billion
- Adjusted operating income margin: 8 percent
- Adjusted net income per share: $2.65 to $2.85
- Cash flow from operations: $280 million to $310 million
- Capital expenditures: $315 million to $325 million
"Consistent with our mission to make vehicles drive cleaner, better and further, we secured a number of key wins, including our largest power electronics program," Delphi CEO Rick Dauch said in a statement. "We also announced our industry-first 500+ bar GDi system, which will significantly improve vehicle emissions."
Delphi Technologies ranks No. 62 on the Automotive News list of the top 100 global suppliers with estimated worldwide sales to automakers of $3.86 billion in 2018.
