Delphi Rises After Quarterly Profit Tops Estimates
Delphi Automotive Plc (DLPH), the auto-parts maker, reached its highest closing price in a week after reporting fourth-quarter results that exceeded estimates.
Delphi gained 1.4 percent to $39.34 in New York, the highest closing price since Jan. 29. Delphi has increased 2.8 percent this year after rising 78 percent last year. The Standard & Poor’s 500 Index (SPX) increased 13 percent in 2012.
Excluding some restructuring and acquisition costs, Delphi said in a statement it had a fourth-quarter profit of 90 cents a share, exceeding the 87-cent average of 14 analysts’ estimates compiled by Bloomberg. Delphi reported quarterly net income of $136 million, or 43 cents a share, down from $290 million, or 88 cents, a year earlier.
Delphi is cutting jobs and closing plants, primarily in Europe. The Troy, Michigan-based company said restructuring costs will now total about $300 million from $250 million previously. About 75 percent of the expenses are in Europe. The company said it recorded about $170 million in such expenses in the fourth quarter, with most of the rest to occur this year.
“Maintaining and improving our lean operating structure is of paramount importance to us,” Chief Executive Officer Rodney O’Neal said in the statement.
Europe, a large market for Delphi, is mired in its worst sales slowdown in 19 years. Automakers including General Motors Co. (GM) and Ford Motor Co. (F) have announced plans to close plants to curb losses on the continent. Revenue for the quarter fell 3.4 percent to $3.77 billion, because of lower vehicle production in Europe. That matched the average of 11 estimates.
The company, in slides for an conference call, today forecast 2013 per-share adjusted profit of $4.12 to $4.38.
Delphi, registered in Gillingham, U.K.
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