Delphi Technologies PLC posted lower profit in the fourth quarter of 2017 in its first earnings report after completing its spinoff from Delphi Automotive PLC to become a stand-alone company focused on powertrain and aftermarket solutions.
Net income fell to $56 million, or 63 cents per share, in the quarter, from $78 million, or 88 cents per share, in the year-ago period.
Excluding special items, the company earned $110 million, or $1.24 per share, up from $97 million, or $1.09 per share, a year earlier.
Revenue for the quarter came in at $1.29 billion, up 12% from $1.15 billion in the previous year. Revenue from the powertrain systems segment rose 14% to $1.12 billion, and revenue from the aftermarket segment increased 5% to $250 million.
Fourth-quarter operating income decreased year over year to $106 million from $112 million but rose to $164 million from $133 million on an adjusted basis. The company recorded separation costs of $35 million in the quarter.
Delphi Technologies' tax expense climbed to $27 million from $23 million, resulting in an effective tax rate of about 30%, compared to 21% the year before.
"The increase in the effective tax rate reflects the impacts of discrete items and separation related activities," according to a statement from the company, which completed the spinoff in early December 2017. Delphi Automotive rebranded as Aptiv following the separation.
For the full year, Delphi Technologies reported net income of $285 million, or $3.21 per share, up from $236 million, or $2.66 per share, in 2016. Adjusted full-year net income increased to $457 million, or $5.15 per share, from $421 million, or $4.75 per share.
Full-year revenue went up to $4.85 billion, from $4.49 billion in 2016.
The company is expecting revenue of $4.9 billion to $5.1 billion in 2018 and adjusted EPS of between $4.50 and $4.80.