Aptiv PLC, a global technology company focused on making mobility safer, greener and more connected, today reported second quarter 2021 U.S. GAAP earnings of $0.54 per diluted share
Aptiv PLC, a global technology company focused on making mobility safer, greener and more connected, today reported second quarter 2021 U.S. GAAP earnings of $0.54 per diluted share. Excluding special items, second quarter earnings totaled $0.60 per diluted share.
Second Quarter Financial Highlights Include:
- U.S. GAAP revenue of $3.8 billion, an increase of 94%
- Revenue increased 85% adjusted for currency exchange, commodity movements and divestitures
- U.S. GAAP net income of $147 million, diluted earnings per share of $0.54
- Excluding special items, diluted earnings per share of $0.60
- U.S. GAAP operating income margin of 7.5%
- Adjusted Operating Income margin of 7.9%, Adjusted Operating Income of $301 million; Adjusted EBITDA of $498 million
- Generated $297 million of cash from operations
- Extended Credit Agreement to June 2026; converted to a green facility utilizing the Company’s existing sustainability-linked metrics and commitments
Year-to-Date Financial Highlights Include:
- U.S. GAAP revenue of $7.8 billion, an increase of 51%
- Revenue increased 44% adjusted for currency exchange, commodity movements and divestitures
- U.S. GAAP net income of $426 million, diluted earnings per share of $1.57
- Excluding special items, diluted earnings per share of $1.66
- U.S. GAAP operating income margin of 9.1%
- Adjusted Operating Income margin of 9.4%, Adjusted Operating Income of $738 million; Adjusted EBITDA of $1,128 million
- Generated $549 million of cash from operations
“Aptiv’s first half performance, which includes record revenue growth and growth over market, in addition to record new business awards, further validates the strength of our portfolio of market relevant technologies aligned to the safe, green and connected megatrends,” said Kevin Clark, president and chief executive officer. “Our relentless focus on serving customers in this challenging environment is driving incremental volume and market share gains for Aptiv. These higher demand levels are represented in our raised outlook for the year, as we continue to work diligently to mitigate headwinds while the industry strives to meet post-pandemic demand levels. Our unique brain and nervous system capabilities are providing distinct advantages to help customers transition to the electrified, software-defined vehicle of the future, resulting in more content and expansive market opportunities. Moving forward, I am confident that the benefits of our flexible and sustainable business model, our track record of innovation and execution, and our strong balance sheet will continue to create value for all of our stakeholders.”
Second Quarter 2021 Results:
For the three months ended June 30, 2021, the Company reported U.S. GAAP revenue of $3.8 billion, an increase of 94% from the prior year period. Adjusted for currency exchange, commodity movements and divestitures, revenue increased by 85% in the second quarter, lapping the impacts of the pandemic-related shutdowns in the prior year period. This reflects growth of 154% in North America, 123% in Europe, 17% in Asia, which includes growth of 2% in China, and 287% in South America, our smallest region.
The Company reported second quarter 2021 U.S. GAAP net income of $147 million and earnings of $0.54 per diluted share, compared to a net loss of $369 million and a loss of $1.43 per diluted share in the prior year period. Second quarter Adjusted Net Income, a non-GAAP financial measure defined below, totaled $170 million, or earnings of $0.60 per diluted share, compared to an Adjusted Net Loss of $287 million, or a loss of $1.10 per diluted share, in the prior year period.
Second quarter Adjusted Operating Income, a non-GAAP financial measure defined below, was $301 million, compared to an Adjusted Operating Loss of $229 million in the prior year period. Adjusted Operating margin was 7.9%, compared to (11.7)% in the prior year period, reflecting the impact of higher global vehicle production levels in the quarter, while lapping the impacts of the pandemic-related shutdowns in the prior year period. This includes the impact of incremental costs largely incurred in connection with the global supply chain disruptions currently impacting the industry. Depreciation and amortization expense totaled $197 million, an increase from $184 million in the prior year period.
Interest expense for the second quarter totaled $38 million, as compared to $44 million in the prior year period.
Tax expense in the second quarter of 2021 was $28 million, resulting in an effective tax rate of approximately 11%. Tax benefit in the second quarter of 2020 was $14 million, resulting in an effective tax rate of approximately 4%.
The Company generated net cash flow from operating activities of $297 million in the second quarter, compared to net cash flow used by operating activities of $106 million in the prior year period.
Year-to-Date 2021 Results:
For the six months ended June 30, 2021, the Company reported U.S. GAAP revenue of $7.8 billion, an increase of 51% from the prior year period. Adjusted for currency exchange, commodity movements and divestitures, revenue increased by 44% during the period. This reflects growth of 47% in Europe, 46% in North America, 37% in Asia, which includes growth of 35% in China and 92% in South America, our smallest region.
For the 2021 year-to-date period, the Company reported U.S. GAAP net income of $426 million and earnings of $1.57 per diluted share, compared to $1,203 million and $4.66 per diluted share in the prior year period. Year-to-date Adjusted Net Income totaled $471 million, or $1.66 per diluted share, compared to an Adjusted Net Loss of $114 million, or losses of $0.44 per diluted share, in the prior year period.
The Company reported Adjusted Operating Income of $738 million for the six months ended June 30, 2021, compared to $2 million in the prior year period. Adjusted Operating margin was 9.4% for the six months ended June 30, 2021, compared to nil in the prior year period. Depreciation and amortization expense totaled $390 million, an increase from $364 million in the prior year period.
Interest expense for the six months ended June 30, 2021 totaled $78 million, as compared to $87 million in the prior year period.
Tax expense for the six months ended June 30, 2021 was $76 million, resulting in an effective tax rate of approximately 12%. Tax benefit in the prior year period was $4 million, resulting in an effective tax rate of nil.
The Company generated net cash flow from operating activities of $549 million in the six months ended June 30, 2021, compared to $55 million in the prior year period. As of June 30, 2021, the Company had cash and cash equivalents of $2.9 billion and total available liquidity of $5.5 billion.
Reconciliations of Adjusted Revenue Growth, Adjusted Net Income (Loss), Adjusted Net Income (Loss) Per Share, Adjusted Operating Income (Loss), Adjusted EBITDA and Cash Flow Before Financing, which are non-GAAP measures, to the most directly comparable financial measures, respectively, calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”) are provided in the attached supplemental schedules.
Full Year 2021 Outlook
The Company’s full year 2021 financial guidance is as follows:
| (in millions, except per share amounts) |
Full Year 2021 |
| Net sales |
$16,115 – $16,415 |
| Adjusted EBITDA |
$2,380 – $2,460 |
| Adjusted EBITDA margin |
14.8% – 15.0% |
| Adjusted operating income |
$1,590 – $1,670 |
| Adjusted operating income margin |
9.9% – 10.2% |
| Adjusted net income per share (1) |
$3.63 – $3.87 |
| Cash flow from operations |
$1,800 |
| Capital expenditures |
$750 |
| Adjusted effective tax rate |
12% |
(1) The Company’s full year 2021 financial guidance includes approximately $0.80 per diluted share for the anticipated equity losses to be recognized by Aptiv from the performance of the Motional autonomous driving joint venture.
SOURCE: Aptiv
