LONDON, Jan. 28, 2020 /PRNewswire/ -- Delphi Technologies
PLC (NYSE: DLPH) ("Delphi Technologies" or the "Company") today
announced preliminary full year 2019 results, above its prior
outlook ranges.
Preliminary full year 2019 results highlights:
- Revenue of $4.36 billion
decreased by approximately 10% from the prior year period.
Adjusting for currency exchange, revenue decreased by approximately
7%.
- Adjusted operating income of approximately $315 million, representing an adjusted operating
margin of approximately 7.2%.
- Cash flow from operations of approximately $290 million.
- Free Cash flow, defined as cash flow from operations less
investing activities, including capital expenditures, of
approximately $(70) million.
- Restructuring efforts ahead of plan.
All of the information in this press release is preliminary and
subject to completion of year-end financial reporting processes,
reviews and audit relating to 2019 fourth quarter and full year
financial information, which is unaudited. Accordingly, these
preliminary results may change, and any changes may be material.
Further, these preliminary results are not a comprehensive
statement of the company's financial results.
Use of non-GAAP financial information
This press
release contains information about Delphi Technologies' financial
results which are not presented in accordance with U.S. GAAP.
Adjusted Operating Income is a non-GAAP financial measures.
Adjusted Operating Income represents net income before interest
expense, other (expense) income, net, income tax expense, equity
income, net of tax, restructuring, separation costs, transformation
costs, asset impairments and pension charges. Adjusted Operating
Income margin is defined as Adjusted Operating Income as a
percentage of net sales.
In addition, this news release contains information about the
Company's adjusted revenue, which is presented on a constant
currency basis. The constant currency presentation, which is a
non-GAAP measure, excludes the impact of fluctuations in foreign
currency exchange rates that occurred between the comparative
periods. Constant currency net sales results are calculated by
translating current period net sales in local currency to the U.S.
dollar amount by using the currency conversion rate for the prior
comparative period. The Company consistently applies this
approach to net sales for all countries where the functional
currency is not the U.S. dollar. The Company believes that this
presentation provides useful supplemental information regarding
changes in our revenue that were not due to fluctuations in
currency exchange rates and such information is consistent with how
the Company assesses changes in its revenue between comparative
periods.
Management believes the non-GAAP financial measures used in this
press release are useful to both management and investors in their
analysis of the Company's financial position, results of operations
and liquidity. In particular, management believes Adjusted
Operating Income is a useful measure in assessing the Company's
ongoing financial performance that, when reconciled to the
corresponding U.S. GAAP measure, provides improved
comparability between periods through the exclusion of certain
items that management believes are not indicative of the Company's
core operating performance and that may obscure underlying business
results and trends. Management also uses this non-GAAP
financial measure for internal planning and forecasting
purposes.
Adjusted Operating Income is reconciled to the most directly
comparable U.S. GAAP financial measure below. Non-GAAP measures
should not be considered in isolation or as a substitute for the
Company's reported results prepared in accordance with U.S. GAAP
and, as calculated, may not be comparable to other similarly titled
measures of other companies.
Year Ended
December 31, 2019
|
|
(in
millions)
|
|
Operating
income........................................................................................................
|
$ 140
|
Restructuring…........................................................................................................
|
80
|
Separation and
transformation
costs…...................................................................
|
45
|
Asset
impairments…...............................................................................................
|
35
|
Pension
charges…..................................................................................................
|
15
|
Adjusted operating
income…......................................................................................
|
$ 315
|
This press release, as well as other statements made by Delphi
Technologies PLC, contain forward-looking statements that reflect,
when made, the Company's current views, including as to the
Company's financial results for the full year 2019 when finalized
in connection with completion of year-end financial reporting
processes, reviews and audit of such results. Such forward-looking
statements are subject to many risks, uncertainties and factors
relating to the Company's operations and business environment,
which may cause the actual results of the Company to be materially
different from any future results. All statements that address
future operating, financial or business performance or the
Company's strategies or expectations are forward-looking
statements. In some cases, you can identify these statements by
forward-looking words such as "may," "might," "will," "should,"
"expects," "plans," "intends," "anticipates," "believes,"
"estimates," "predicts," "projects," "potential," "outlook" or
"continue," the negatives thereof and other comparable terminology.
Factors that could cause actual results to differ materially from
these forward-looking statements include factors discussed under
the captions "Forward-Looking Statements", "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in the Company's filings with the Securities
and Exchange Commission.
About Delphi Technologies
Delphi Technologies is a
global provider of propulsion technologies that make vehicles drive
cleaner, better and further. It offers pioneering solutions for
internal combustion engine, hybrid and electric passenger cars and
commercial vehicles. Delphi Technologies builds on its Original
Equipment expertise to provide leading service solutions for the
aftermarket. Headquartered in London (UK), the company operates technical
centers, manufacturing sites, customer support service centers in
24 countries and employs more than approximately 21,000 people
around the world. Visit www.delphi.com to learn more.
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SOURCE Delphi Technologies PLC