Delphi Reports Fourth Quarter and Full Year 2011 Financial Results

Release Date: January 26, 2012

Highlights include:

• Fourth quarter revenue of $3.9 billion, up 6.8% over Q4 2010; full year revenue of $16.0 billion, up 16.1% over 2010
• Fourth quarter net income of $290 million compared with $75 million in Q4 2010; full year net income of $1.1 billion, up $514 million from full year 2010
• Fourth quarter diluted earnings per share of $0.88; full year diluted earnings per share of $2.72
• Fourth quarter EBITDA of $530 million compared with $223 million in Q4 2010; full year EBITDA of $2.1 billion versus $1.4 billion in 2010
• Fourth quarter EBITDA margin of 13.6%; full year EBITDA margin of 13.2%
• Strong earnings growth and cash flow generation in 2011 resulted in full year cash flow from operating activities of $1.4 billion and cash flow before financing of $859 million
• Board of Directors authorized $300 million share repurchase program

Download the press release with all charts as a PDF here.

TROY, Mich. — Delphi Automotive (NYSE: DLPH), a leading global vehicle components manufacturer providing electrical and electronic, powertrain, safety and thermal technology solutions to the global automotive and commercial vehicle markets, today reported fourth quarter 2011 revenues of $3.9 billion, an increase of 6.8% over the prior year period, and fourth quarter net income of $290 million, an increase of $215 million over the prior year period.

"Our ability to generate strong financial performance in the fourth quarter and for the full year is a result of our focus on flawless execution and providing market-relevant technologies to the world's leading automakers," said Rodney O'Neal, president and chief executive officer. "Our robust business model, operational excellence and industry-leading cost structure position us to provide continued superior returns to our stakeholders."

Fourth Quarter 2011 Results

The Company reported fourth quarter 2011 revenue of $3.9 billion, an increase of 6.8% over the fourth quarter of 2010. The increase in revenue primarily reflects strong growth in Europe and Asia driven by customer and product mix, as well as the benefits of higher global vehicle production compared to the prior year period.

Fourth quarter net income totaled $290 million, or $0.88 per diluted share, compared to net income of $75 million, or $0.11 per diluted share, in the prior year period (refer to footnote 2 for determination of weighted average shares outstanding and earnings per share calculations).

Fourth quarter earnings before depreciation and amortization, interest expense, other income/expense, income tax expense, and equity income ("EBITDA") was $530 million, compared to $223 million reported in the prior year period, an increase of $307 million. EBITDA margin was 13.6% in the fourth quarter of 2011, compared to 6.1% in the prior year period. The improvement in EBITDA reflects the contribution margin from increased revenue, operational improvements resulting from cost reduction initiatives, an $89 million reduction in restructuring charges, and the effect of a $75 million commercial settlement that was incurred in 2010.

Interest expense for the fourth quarter totaled $39 million, compared to $8 million in 2010, reflecting the debt financing incurred in 2011 to redeem the ownership interests previously held by General Motors Company and the Pension Benefit Guaranty Corporation.

Tax expense for the fourth quarter was $29 million, compared to $49 million in the prior year period. The 2011 period included discrete tax benefits of $53 million, primarily related to the release of deferred tax asset valuation allowances, as well as the impacts of the geographic mix of pretax earnings, resulting in an effective tax rate of 8%.

Full Year 2011 Results

The Company reported 2011 revenue of $16.0 billion, an increase of 16.1% over 2010. The increase includes solid revenue growth across all regions, driven by customer mix and strong demand for powertrain and electronic architecture products, increased global vehicle production, and favorable foreign currency exchange.

Full year 2011 net income totaled $1.1 billion, or $2.72 per diluted share, compared to net income of $631 million, or $0.92 per diluted share in 2010 (refer to footnote 2 for determination of weighted average shares outstanding and earnings per share calculations).

Full year 2011 EBITDA was $2.1 billion, an increase of $758 million over $1.4 billion reported in 2010. EBITDA margin for the full year 2011 was 13.2%, compared to 9.9% in 2010. The increase resulted from contribution margin from increased revenue, operational improvements resulting from cost reduction initiatives, and a $193 million reduction in restructuring charges.

Interest expense for 2011 totaled $123 million, compared to $30 million in 2010, reflecting the debt financing incurred in 2011 to redeem ownership interests.

Tax expense for 2011 was $305 million, compared to $258 million in 2010. The 2011 period includes the impacts of higher pretax earnings, offset by the geographic mix of pretax earnings and the release of deferred tax asset valuation allowances, resulting in an effective tax rate of 20%.

In 2011, the Company generated net cash flow from operating activities of $1.4 billion, as compared to $1.1 billion in 2010. Capital expenditures in 2011 were $630 million compared to $500 million last year. The Company generated $859 million in cash flow before financing, compared to $781 million in 2010.

As of December 31, 2011, the Company had cash and cash equivalents of $1.4 billion and access to $1.3 billion in undrawn committed bank facilities, providing the Company with $2.7 billion of total liquidity. Total debt outstanding as of December 31, 2011 was $2.1 billion.

Share Repurchase Program

Delphi's Board of Directors has authorized the repurchase of up to $300 million of ordinary shares. The program will terminate on the earlier to occur of December 31, 2012 or when the Company attains $300 million in ordinary share repurchases.

2012 Outlook

The Company's first quarter and full year 2012 guidance is as follows:

Full year cash flow before financing is expected to be approximately $1.0 billion, which includes $750 million of estimated capital expenditures. The Company estimates a full year tax rate of approximately 19%. Quarterly tax rates can be affected by the geographic mix of pretax earnings as well as the timing of discrete tax items.

Conference Call and Webcast

The Company will host a conference call to discuss these results at 5:00 p.m. (ET) today, which is accessible by dialing 888.486.0553 (US domestic) or 706.634.4982 (international) or through a webcast at http://delphi.com/investors. The conference ID number is 45458948. A slide presentation will accompany the prepared remarks and has been posted on the investor relations section of the Company's website. A replay will be available two hours following the conference call.

Use of Non-GAAP Financial Information

This press release contains information about Delphi's financial results which are not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures at the end of this press release. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures of other companies.

About Delphi

Delphi is a leading global supplier of electronics and technologies for automotive, commercial vehicle and other market segments. Operating major technical centers, manufacturing sites and customer support facilities in 30 countries, Delphi delivers real-world innovations that make products smarter and safer as well as more powerful and efficient. Connect to innovation at www.delphi.com.

FORWARD-LOOKING STATEMENTS This press release, as well as other statements made by Delphi Automotive PLC ("Delphi" or the "Company"), contain forward-looking statements that reflect, when made, the Company's current views with respect to current events and financial performance. 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, express or implied, by such forward-looking statements.  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," "anticipates," "believes," "estimates," "predicts," "projects," "potential," "outlook" or "continue," and other comparable terminology. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: global economic conditions, including conditions affecting the credit market, the cyclical nature of automotive sales and production; the potential disruptions in the supply of and changes in the competitive environment for raw material integral to our products; the Company's ability to maintain contracts that are critical to its operations; the ability of the Company to attract, motivate and/or retain key executives; the ability of the Company to avoid or continue to operate during a strike, or partial work stoppage or slow down by any of its unionized employees or those of its principal customers, and the ability of the Company to attract and retain customers. Additional factors are discussed under the captions "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.  New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company.  It should be remembered that the price of the ordinary shares and any income from them can go down as well as up. Delphi disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise, except as may be required by law.