AUBURN HILLS–Phinia Inc. (NYSE: PHIN), a manufacturer of fuel systems, electrical systems, and aftermarket auto parts, reported net income of $31 million or 70 cents a share in the third quarter, compared to a loss of $1 million or 2 cents a share in the same quarter a year earlier.
Sales fell 6.4 percent to $839 million, with lower fuel systems sales in China partially offset by strong aftermarket segment sales in Europe.
The company said the improvement in operating income was driven by lower separation and transaction expenses, and lower supplier and inflationary costs, partially offset by lower revenues.
Company officials said new business wins were strong in all markets, including a new off highway diesel system for use in excavators, forklifts, and generators, components for passenger vehicles in India and the United States, and new agreements with customers in Europe and Mexico.
Said Phinia President and CEO Brady Ericson: “Pninia achieved excellent financial performance in the third quarter of 2024, despite revenue softness in some markets. Our team’s ability to meet increased aftermarket demand while flexing overheads in appropriate parts of the business enabled expansion of adjusted EBITDA margins by 90 basis points, and generation of $60 million in adjusted free cash flow. We continue to book high quality, bottom line accretive new business in both the fuel systems and aftermarket segments demonstrating the ongoing success of our strategy.”
Based on softening of markets, the company reduced its full year 2024 guidance to sales of $3.36 billion to $3.41 billion and net earnings of $105 million to $125 million.
For more information on these results, visit the Phinia Q3 2024 Earnings Call. Additional presentation materials will be available at Investors.phinia.com.
Phinia brands include Delphi, Delco Remy and Hartridge. The company has more than 13,000 employees across 44 locations in 20 countries, serving commercial vehicles and industrial applications (heavy-duty and medium-duty trucks, off-highway construction, marine, aviation, and agricultural), and light vehicles (passenger cars, trucks, vans and sport-utility) with fuel systems, electrical systems and aftermarket parts designed to keep combustion engines operating at peak performance, while investing in advanced technologies to unlock the potential of alternative fuels.