Delphi Automotive Plc (DLPH), a leading global vehicle components manufacturer, has recorded a 4.09 percent increase in profit for the quarter ended Jun. 30, 2014. The company earned $382 million or $1.26 a share in the second-quarter compared with $367 million or $1.17 a share a year ago. Adjusted earnings per share came in at $1.42, when analysts expected $1.31.
Revenue during the second-quarter rose 4.98 percent to $4,451 million from $4,240 million in the last year period.
Gross margin expanded by 57 basis points over the last year period to 18.87 percent. Total expenses as a percentage of revenues increased to 89.04 percent from 88.61 percent in the same period last year. That has resulted in contraction of 43 basis points in operating margins to 10.96 percent.
The company posted operating income of $488 million, compared with $483 million in the previous year period.
"Continued outstanding operating performance drove our second quarter financial results to a new quarterly record for the Company," said Rodney O'Neal, chief executive officer and president. "We remain focused on achieving our key objectives for the year and enhancing shareholder value."
Cash Flow
Delphi Automotive has generated cash of $763 million from operating activities during the first half, up 13.54 percent or $91 million when compared with the last year period. The company has generated 8.74 cents of operating cash flow in every sales dollar for the first half, up from 8.13 cents in the same period last year.
The company has spent $466 million cash to meet investing activities during the first half, as against cash outgo of $327 million in the last year period. It has made net capital expenditure of $465 million during the first half, which was higher by 40.06 percent or $133 million, from a year ago.
The company's free cash flow accounted for 39.06 percent of operating cash flow for the first half, compared with 50.60 percent in the last year period.
The company has spent $519 million cash to meet financing activities during the first half, as against cash outgo of $440 million in the last year period. It has borrowed net of $7 million through debt during the first half. It has spent net of $358 million on repurchase of common stocks.
The company's cash dividend payment increased 40.35 percent or $46 million to $160 million.
As on Jun. 30, 2014, the company's cash balance stood at $1,166 million, up 16.48 percent or $165 million from Jun. 30, 2013.
Working Capital
Delphi Automotive Plc has witnessed an increase in the working capital over the last one year. The company's working capital stood at $2,084 million as at Jun. 30, 2014, up $260 million or 14.25 percent from $1,824 million on Jun. 30, 2013. It registered an increase in current ratio to 1.52 as at Jun. 30, 2014 from 1.48 on Jun. 30, 2013.
Debt Position
Delphi Automotive has witnessed an increase in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $2,452 million, up 1.07 percent or $26 million, from Jun. 30, 2013.
The company total debt was 21.41 percent of total assets as on Jun. 30, 2014, compared with 22.99 percent on Jun. 30, 2013. It has witnessed a decline in debt to equity ratio to 0.67 on Jun. 30, 2014 compared with 0.80 on Jun. 30, 2013.
Interest coverage ratio, which determines how easily a company can pay interest expenses on outstanding debt, has improved to 14.79 from 13.42 in the same period last year.
Shares of the company went down by 78 cents or 1.15 percent to close at $66.80 on Thursday.
