Delphi Automotive doubles cash flow, returns $4 billion to shareholders

By Lisa Kerner

Charlotte, N.C., April 13 – Delphi Automotive plc has doubled its cash flow over the past five years, enabling the company to return $4 billion to shareholders since its initial public offering, said chief financial officer Joe Massaro.

Massaro made his comments during Delphi’s investor update meeting on Wednesday in London.

At Dec. 31, Delphi had $536 million of cash, $4 billion of debt, $3.5 billion of net debt, debt-to-EBITDA of 2.1 times and net debt-to-EBITDA of 1.9 times, according to the presentation.

This compares to $860 million, $2.4 billion, $1.6 billion, 1.6 times and 1.3 times, respectively, at Dec. 31, 2014.

“Between 2010 and 2015, revenues grew at an average of 5%, operating income nearly doubled and our operating margin expanded to 13%,” Massaro said.

Delphi also announced a new $1.5 billion share repurchase program on Wednesday, according to the CFO.

Earlier in the year, the company announced an increase in the annual dividend payout to $1.16 per share, representing about 15% of Delphi’s operating cash flow.

The company expects to generate $2.6 billion of cash flow from operations in 2018 and remains focused on investing in its businesses.

According to Massaro, capital allocation for the period 2016 to 2018 is earmarked as follows: 45% to 55% for M&A and share repurchases, 10% to 15% for dividends and 35% to 40% for capital expenditures.

Cap ex as a percentage of revenue is expected to remain between 4% and 5%.

Delphi is a vehicle components manufacturer based in Gillingham, England.

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