The following is a summary of the Aptiv PLC (APTV) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Aptiv reported Q1 revenue just under $5 billion, a 2% adjusted year-over-year growth, and an EPS increase of 27% to $1.16.

• Gross profit stood at $720 million and operating income was $544 million, reflecting benefits from productivity actions and cost measures.

• The company repurchased $600 million of its stock during the quarter, taking total repurchases to $900 million over the last two quarters.

• Weakness in electric vehicle production and negative foreign exchange rates led to a reduction of full-year 2024 revenue guidance by $450 million.

• Aptiv's financial target to increase automation is set at 30% of standard labor hours by 2026 and over 50% by 2030.

• Expectations for second half 2024 are high, with projected revenue increase of $800 million based on new program launches.

Business Progress:

• Aptiv sees continuous demand for products with bookings reaching $13 billion.

• In spite of softness in electric vehicle production, the company aims to generate additional $50 million of cost savings through the year with actions taken.

• An agreement with Hyundai Motor Group on the Motional joint venture has been concluded successfully.

• The company is supporting a record 2,300 new program launches this year, with 750 having already launched in Q1.

• Business with both local and multinational OEMs in China exceeded $3 billion, putting the firm in line to surpass its 2023 bookings.

• Ongoing cost savings and performance actions are expected to continue, mitigating volume and foreign exchange impact.

• The Advanced Safety and User Experience segment reported a 5% revenue growth driven by a 24% increase in active safety.

• Despite vehicle production challenges and high voltage slowdown, the company aims for sustainable improvements in operating income and cash flow.

• Coming fiscal years will see recurrent benefits from the agreement with Hyundai, providing Aptiv a boost in its EPS.

• The company also predicts $200 million half-over-half revenue increase in ASUX due to a significant active safety program launch.

• Aptiv continues to balance capital deployment, with an anticipated return of nearly $2 billion to shareholders in two years.

• Aptiv shows margin improvement against stabilizing macroeconomic conditions, while sustaining its 6%-8% gross margin framework.

• In light of shifting product mix, the brand predicts 20% growth in active safety this year, supported by healthy booking figures.

More details: Aptiv PLC IR

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