Aptiv said its second-quarter net income fell 5.8 percent to $274 million, citing low vehicle production and a flat commercial vehicle market.
The company, which has a major stake in autonomous vehicle r&d, said its second-quarter operating margin declined to 11.2 percent from 12.9 percent because of unfavorable impacts of foreign currency exchange, vehicle production declines in China and continued incremental investments for growth.
Revenue fell 1.5 percent to $3.63 billion during the latest period.
Aptiv shares rose 7.8 percent to $87.92 in Wednesday afternoon trading. On a per-share basis, adjusted earnings came in at $1.33, 20 cents above the Wall Street forecast, according to a UBS analyst report.
Revenue in the company’s biggest business, signal and power solutions, fell 2.5 percent to $2.56 billion during the quarter, while sales of advanced safety and user experience components stayed relatively flat at $1.05 billion.
Depreciation and amortization expense in the second quarter increased 20 percent to $188 million, primarily because of noncash impairment charges and increases related to acquisitions and capital investments, the company said.
Tax expenses fell 63 percent to $31 million.
Aptiv’s second-quarter interest expense rose 19 percent to $43 million, which was driven by the impacts of its debt refinancing transactions in the first quarter of 2019.
“Aptiv’s second quarter performance, including sustained strong above-market growth despite weak global vehicle production, reflects the efforts we have taken to build a more sustainable business, perfectly positioned to efficiently solve our customer’s toughest challenges,” CEO Kevin Clark said in a statement. “As evidenced by our performance in the first half of this year, we are well-positioned to outperform in any environment.”
Aptiv, which spun off from Delphi Technologies in 2018, said it repurchased 1.6 million shares for approximately $120 million, leaving roughly $2.1 billion available for future share repurchases.
The company, headquartered in Ireland for tax purposes, ranks No. 20 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $12.87 billion in 2018.