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UPDATE 1-Delphi tops profit estimates, raises full-year earnings outlook
April 24, 2014 / 11:45 AM / 3 years ago

UPDATE 1-Delphi tops profit estimates, raises full-year earnings outlook

(Adds details from statement)

April 24 (Reuters) - Auto parts maker Delphi Automotive Plc reported a better-than-expected quarterly profit, helped by strong demand in Asia and North America, and raised its 2014 earnings outlook.

The company said it now expects 2014 adjusted earnings between $4.80 and $5.00, up from its previous forecast of between $4.70 and $4.95 a share.

Analysts on average were expecting $4.89 a share, according to Thomson Reuters I/B/E/S.

Delphi has been drawn into General Motors Co’s recall of defective ignition switches, which have been linked to at least 13 deaths.

Delphi manufactured the faulty parts and is working with GM to make replacements for the recalled 2.6 million cars.

U.S. lawmakers have asked Delphi Chief Executive Rodney O‘Neal for information about whether the parts maker pushed back against GM after the automaker apparently did not accept a proposed Delphi fix in 2005 to the switches.

Delphi officials have told investigators that GM approved the bad ignition switches, even though the parts did not appear to meet GM’s own specifications.

The net income attributable to Delphi rose 16 percent to $320 million, or $1.04 a share, for the first quarter ended March 31, from $276 million, or $0.88 a share, in the year earlier period.

Excluding one-time items, Delphi earned $1.20 a share, trumping the average analyst estimate of $1.08 a share.

Revenue rose 6 percent from last year to $4.28 billion, but fell slightly short of the average estimate of $4.29 billion. (Reporting by Sweta Singh in Bangalore and Ben Klayman in Detroit; Editing by Saumyadeb Chakrabarty)

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