Delphi Technologies PLC (NYSE: DLPH) stock rose over 8.20% on April 1st, 2019 and holding decently today rising over 0.6% on April 2nd, 2019 (As of 2:45 PM EDT; Source: Google finance).
The company in the fourth quarter of FY 18 has reported the 5% decline in the adjusted revenue to $1171 million. Adjusted revenue reflects a decrease of 6% in Powertrain Systems and growth of 3% 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. During the fourth quarter, the adjusted Net Income, had totaled $94 million which compared to the adjusted Net Income in the prior year period of $117 million. The decrease in Adjusted Net Income was primarily due to unfavorable product mix and spin-related costs associated with becoming a stand-alone public company, partially offset by reduced incentive compensation accruals. The Company generated cash from operating activities of $126 million in the fourth quarter, compared to $95 million in the prior year period, which reflects improvement in net working capital offset by a decrease in net income, excluding the impact of non-cash items. Capital expenditures totaled $80 million in the fourth quarter, compared to $86 million in the prior year period.
The company posted 200 basis point decline in the adjusted operating Income margin in the fourth quarter of 2018 to 10.7%, compared with 12.7% in the prior year period. Adjusted Operating Income was $125 million, compared to $164 million in the prior year period. The decrease in Adjusted Operating Income was primarily related to an unfavorable product mix and spin-related costs associated with becoming a stand-alone public company, partially offset by reduced incentive compensation accruals. Depreciation and amortization expense (including asset impairment charges and amortization of deferred debt issuance costs) totaled $53 million in the fourth quarter as compared to $57 million in the prior year period.
Additionally, DLPH has approved a $200 million share repurchase program and the suspension of its quarterly dividend. The repurchase program replaces the prior authorization and is expected to be completed by the end of 2021.
For FY 19, DLPH expects revenue to be in the range of $4,650 – $4,750 million, adjusted growth (3)% – (1)%, adjusted operating income margin is expected to be about 9%, adjusted earnings per share to be in the range of $3.00 – $3.20, capital expenditures is expected to be in the range of $310-$330m, including ~$30m of separation capex and Operating cash flow is expected to be in the range of $320 – $350.