AUBURN HILLS–Phinia Inc. (NYSE: PHIN), manufacturer of mobility industry fuel systems, electrical systems, and aftermarket products, announced net income of $35 million, down from $41 million in the same quarter a year earlier.
Revenue in the second quarter was $887 million, up 11.4 percent from $796 million in the same quarter of 2022.
For the six months, net income was $70 million, down from $98 million in the first half of 2022. Revenue was $1.72 billion, up from $1.64 billion in the first half of 2022.
Phinia operated as part of BorgWarner Inc. for the entire second quarter of 2023 prior to the spin-off on July 3, and the historical financial measures presented in this release were derived from BorgWarner Inc.’s accounting records and are presented on a carve-out basis.
The decline in profit was primarily due to a sharp increase in merger, acquisition, and divestiture expenses, and a decline in royalty income from BorgWarner, both a product of the spinout. Earnings before interest, taxes, depreciation and amortization rose in the quarter to $130 million from $106 million a year earlier.
Said Brady Ericson, Phinia president and CEO: “Our Q2 results reflect a positive trend, and we expect to maintain this momentum moving forward. Now that the spin-off is complete, Phinia is a more focused organization, better able to invest in and grow our business, and increase shareholder value by leveraging our core technologies and competencies. We are focused on growing our commercial vehicle and independent aftermarket businesses, which will benefit from the transition to carbon-neutral and carbon-free fuels. With these strategic initiatives, alongside our long-standing partnerships with world-leading OEMs, we are confident we will find multiple avenues for sustainable profitable growth.”
Phinia also affirmed its 2023 full year guidance, with 2023 sales of $3.5 billion to $3.6 billion, and adjusted earnings before interest, taxes, depreciation and amortization of $485 million to $505 million.
To listen to a conference call discussing these results, visit investors.phinia.com.
Phinia’s brand porfolio includes Delphi, Delco Remy and Hartridge. It has 12,900 employees in 44 locations in 20 countries. It serves the heavy-duty and medium-duty truck industries, off-highway construction, marine, agricultural and industrial vehicles, and passenger vehicles.