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Delphi Technologies Q4'17 profit drops after spinoff

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.