AUBURN HILLS–Phinia Inc. (NYSE: PHN), the Auburn Hills-based auto suppiler, reported net income of $11 million or 24 cents a share in the third quarter, down from $89 million or $1.89 a share in the third quarter of 2022.
The company said earnings were hit by 29 cents a share in “non-comparable items,” including restructuring expense, merger, acquisition and divestiture expense, impairment charges, other net expenses, and other gains, losses and tax amounts not reflective of the company’s ongoing operations.
Revenue was $896 million, up 4.3 percent from $859 million in the third quarter of 2022.
For the nine months, net income was $81 million or $1.72 a share, down from $187 million or $3.98 a share in the first nine months of 2022. Revenue was $2.62 billion, up from $2.5 billion in the first nine months of 2022.
Brady Ericson, President, and Chief Executive Officer of PHINIA commented: “Our Q3 results demonstrate solid operational performance with total segment adjusted operating margins in line with our first half average results,” President and CEO Brady Ericson said. “The business continues to show underlying strength despite lower than expected revenue from our China commercial vehicle business and less of a currency tailwind than we had expected earlier in the year. I’m pleased with our teams’ focus on serving our customers well and delivering high quality product. PHINIA continues to win new business that we expect will support annual low single digit top line growth. We ended the quarter with $367 million in cash on hand, leaving us in a solid financial position.”
With commercial vehicle sales running lower than expected in China with key customers, impact from strikes in North America and less favorable currency than expected, the company is revising its 2023 outlook for net sales of $3.44 billion to $3.5 billion, adjusted sales of $3.4 billion to $3.45 billion, adjusted earnings before interest, taxes, depreciation and amortization of $465 million to $475 million, and adjusted EBITDA margins of 13.6% to 13.9%.
To listen to a conference call discussing these results, visit Investors.phinia.com.
Phinia brands include Delphi, Delco Remy, and Hartridge. The company has The Company defines adjusted net earnings per diluted share as net earnings per share adjusted to exclude the tax-effected impact of restructuring expense, merger, acquisition and divestiture expense, impairment charges, other net expenses, and other gains, losses and tax amounts not reflective of the Company’s ongoing operations.