Nov. 5 (Bloomberg) -- Delphi Automotive Plc, a former unit of General Motors Co., fell the most in more than six months after narrowing some of its annual forecasts.
The shares slid 5.2 percent to $55.01 at the close in New York for their biggest drop since April 15. They have increased 44 percent this year, outpacing the 24 percent gain for the Standard & Poor’s 500 Index.
Delphi said annual profit will be $4.25 to $4.35 a share, compared with an earlier forecast of as much as $4.45. The company narrowed the range of adjusted profit margin to 14.4 percent to 14.5 percent, from as much as 14.7 percent.
“There was nothing fundamentally great or bad about the quarter,” Matthew Stover, an analyst with Guggenheim Securities in Boston, said in a note today to clients. “However, we would expect that those most bullish supporters will have wanted more from the quarter.”
Excluding some restructuring and acquisition costs, the company had a third-quarter profit of 97 cents a share, Troy, Michigan-based Delphi said in a statement. That exceeded the 95-cent average estimate of 15 analysts surveyed by Bloomberg. Delphi reported quarterly net income of $271 million, or 87 cents a share, up from $269 million, or 84 cents, a year earlier.
Revenue for the quarter rose 9.7 percent to $4.02 billion, hurt by lower vehicle production in Europe. The average of 12 estimates was for sales of $4.04 billion.
Chief Executive Officer Rodney O’Neal said in an interview that the European market is improving. Delphi generated 41 percent of its 2012 revenue from its Europe, Middle East and Africa region.
“What gives us the optimism is it appears to have stopped going backwards,” O’Neal said of Europe. “Now the dialogue is around when will it go north?”
Delphi is registered in Gillingham, U.K.
To contact the reporter on this story: Mark Clothier in Southfield, Michigan at email@example.com
To contact the editor responsible for this story: Jamie Butters at firstname.lastname@example.org