Aptiv said net income fell 82 percent to $279 million in the first quarter amid the ongoing chip crisis and other constraints that have suppliers struggling across the globe. The first-quarter 2020 results included a one-time gain of $1.4 billion from the creation of Aptiv’s autonomous driving joint venture with Hyundai.
When backing out one-time 2020 gains, the autonomous driving technologies and driver-assist systems supplier said adjusted operating income in the first quarter skyrocketed 89 percent to $437 million.
The company said Thursday that revenue grew 25 percent to $4.02 billion in the quarter, a sign of better-than-anticipated results despite the many challenges the supply chain is navigating.
The supplier reported adjusted earnings before interest, taxes, depreciation and amortization of $630 million. Aptiv said that was partially offset by $25 million in COVID-related operating costs and $45 million in supply chain disruption costs.
By region, Aptiv’s revenue grew 5 percent in North America, 11 percent in Europe and 64 percent in Asia, which includes 94 percent growth in China. Revenue also jumped 28 percent in South America.
“We had a strong start to the year, delivering better than expected revenues, earnings and cash flow, underscoring our ability to outperform despite tightening supply chains globally,” CEO Kevin Clark said in a statement.
The company said severe weather and further supply chain disruptions extended its customers’ shutdowns. Elevated freight, resin and copper costs have also been supply constraints.
The company also announced its commitment to net carbon neutrality by 2040.
Aptiv declined to provide guidance for the second quarter given the volatility of the supply chain.
It ranks No. 18 on the Automotive News list of the top 100 global suppliers, with estimated worldwide parts sales to automakers of $12.81 billion in 2019.