Delphi Automotive Plc reported a higher-than-expected third-quarter profit on Thursday on growing demand for electrification and advanced fuel technologies, and the parts supplier raised its full-year revenue and earnings outlooks.
Delphi said in May it planned to spin off operations tied to internal combustion engines and focus on technology for electrically powered and self-driving vehicles. The move boosted its share price and highlighted the challenges for traditional auto-industry companies.
Regulatory and consumer pressures are forcing established automakers to put more electric vehicles in their fleets over the next several years.
The electronic Delphi, which could get a new name, will compete in a market it estimates at more than $100 billion a year, nearly twice the size of the internal combustion industry. Delphi said its electronic systems units had about $12 billion in revenue in 2016.
The company, which bases its top management in Michigan but is headquartered in Gillingham, England, for tax purposes, expects to complete the spinoff by March.
Delphi said its fastest-growing products, including active safety and advanced gasoline technologies, "infotainment" and electrification, had double-digit growth in the third quarter.
Third-quarter net profit rose 35 percent to $395 million, or $1.48 per share, from $293 million, or $1.97 per share, a year earlier.
Excluding one-time items, earnings per share of $1.66 beat the analysts` average estimate of $1.57, according to Thomson Reuters I/B/E/S.
Revenue rose nearly 5 percent to $4.3 billion from $4.1 billion.
Delphi forecast full-year revenue at $17.35 billion to $17.45 billion, up from a previous range of $16.85 to $17.05 billion.
The company said it expected full-year earnings per share of $6.70 to $6.80. In August, it had forecast them at $6.55 to $6.75.
Shares of Delphi were down 2.4 percent at $96.95 in early trading.
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