Delphi Automotive PLC (DLPH) has reported 27.48 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $293 million, or $1.07 a share in the quarter, compared with $404 million, or $1.42 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $409 million, or $1.50 a share compared with $365 million or $1.28 a share, a year ago. Revenue during the quarter grew 12.67 percent to $4,091 million from $3,631 million in the previous year period. Gross margin for the quarter contracted 77 basis points over the previous year period to 20.41 percent. Total expenses were 88.76 percent of quarterly revenues, up from 87.30 percent for the same period last year. That has resulted in a contraction of 145 basis points in operating margin to 11.24 percent.
Operating income for the quarter was $460 million, compared with $461 million in the previous year period.
However, the adjusted operating income for the quarter stood at $531 million compared to $470 million in the prior year period. At the same time, adjusted operating margin improved 4 basis points in the quarter to 12.98 percent from 12.94 percent in the last year period.
“We delivered strong performance in the third quarter with double-digit sales and earnings growth," said Kevin Clark, president and chief executive officer. "We are confident in our outlook as we continue to aggressively optimize our cost structure to expand margins and fund smart investments in technologies that will enhance our future profitable growth."
Delphi Automotive projects revenue to be in the range of $16,400 million to $16,500 million for financial year 2016. For fiscal year 2016, the company projects adjusted operating income to be in the range of $2,160 million to $2,190 million. For financial year 2016, the company forecasts diluted earnings per share to be in the range of $6 to $6.10 on adjusted basis.
Operating cash flow improves
Delphi Automotive PLC has generated cash of $1,258 million from operating activities during the nine month period, up 24.80 percent or $250 million, when compared with the last year period. The company has spent $587 million cash to meet investing activities during the nine month period as against cash outgo of $735 million in the last year period.
The company has spent $860 million cash to carry out financing activities during the nine month period as against cash outgo of $677 million in the last year period.
Cash and cash equivalents stood at $395 million as on Sep. 30, 2016, down 13.94 percent or $64 million from $459 million on Sep. 30, 2015.
Working capital increases sharply
Delphi Automotive PLC has recorded an increase in the working capital over the last year. It stood at $1,306 million as at Sep. 30, 2016, up 27.29 percent or $280 million from $1,026 million on Sep. 30, 2015. Current ratio was at 1.34 as on Sep. 30, 2016, up from 1.25 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 14 days for the quarter from 29 days for the last year period. Days sales outstanding went down to 64 days for the quarter compared with 67 days for the same period last year.
Days inventory outstanding has decreased to 19 days for the quarter compared with 38 days for the previous year period. At the same time, days payable outstanding went down to 70 days for the quarter from 76 for the same period last year.
Debt increases substantially
Delphi Automotive PLC has witnessed an increase in total debt over the last one year. It stood at $4,074 million as on Sep. 30, 2016, up 30.49 percent or $952 million from $3,122 million on Sep. 30, 2015. Total debt was 33.61 percent of total assets as on Sep. 30, 2016, compared with 28.93 percent on Sep. 30, 2015. Debt to equity ratio was at 1.39 as on Sep. 30, 2016, up from 1.13 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 11.22 for the quarter from 15.37 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
