Delphi Technologies, a manufacturer of propulsion systems for electric-vehicles and cars powered by internal combustion engines, reported a 141% hike in its fourth-quarter net income to US$135 million.
Nearly half of the earnings came from a US$63 million tax gain in the quarter, compared to a US$27 million charge during the same quarter a year earlier.
The former powertrain unit of Delphi Automotive reported fourth-quarter 2018 revenue of US$1.2 billion, a 9% decline compared to same period of the previous year; fourth-quarter revenue adjusted for currency exchange and certain revenue retained by its former parent company declined by 5%.
Delphi's revenue result was driven by a 6% decline in Powertrain Systems business only partially offset by a 3% growth in Aftermarket.
On a regional basis, adjusted revenue also reflects a decrease of 26% in Asia Pacific, partially offset by growth of 6% in North America, 3% in Europe and 16% in South America.
For the full year 2018, Delphi Technologies reported revenue of US$4.9 billion, flat compared to the prior year. Net income totaled US$358 million, a 25.6% increase compared to US$285 million in the prior year.
“2018 was a milestone year for Delphi Technologies,” said CEO, Richard Dauch. “In our first full year as a public company we continued to build on our momentum in key growth technologies, resulting in a record US$10 billion of new business awards”.
Prior to December 4, 2017, Delphi Technologies operated as the Powertrain Systems division of Delphi Automotive PLC. After splitting into two companies, the other being Aptiv, Delphi lost most of its business as Aptiv retained much of the prior company's technology and solutions focused on the autonomous-vehicle market.
In Mexico, Delphi Technologies kept just four manufacturing plants and a share of the Mexico Technical Center (MTC), while Aptiv retained 42 plants and another share of the MTC, located in Ciudad Juarez, which is the company’s largest research and development site worldwide.
“Our industry leading portfolio of technologies are at the heart of the propulsion revolution that enable vehicles to drive cleaner, better and further. We also made great progress in creating a strong foundation as a stand-alone company from which to drive long-term growth,” Dauch added. “During my first two months as CEO, I have discovered while 2019 is expected to be another transitional year with slower industry growth, we have an even greater potential to make this good company a great one”.