Aptiv Predicts Higher Q2 Profit Surpassing Analyst Estimates
(Reuters) -Auto parts supplier Aptiv forecast its second-quarter profit above analysts' estimate on Thursday, betting on benefits from its previously implemented cost-saving measures.
The Dublin-based company had said last year it would implement steps to improve profitability after large automakers tempered their ambitious electrification efforts to adjust to a bumpy market.
Aptiv kept its annual forecast unchanged and said it does not reflect the potential impact of the tariffs imposed by the United States or any other countries.
Companies across the world are struggling to quantify the hit from U.S. President Donald Trump's extensive tariffs, which threaten to slow down global trade and increase prices of everything from crops to cars.
Trump's tariffs, which specifically tackled the import-heavy automotive industry, has forced many companies to rethink sourcing and supply chains.
He, however, signed a pair of orders to soften the blow of his auto tariffs on Tuesday.
Aptiv expects second-quarter adjusted profit in the range of $1.70 to $1.90 per share, above analysts' average estimate of $1.65, according to data compiled by LSEG.
The company counts major automakers such as the Detroit Three, Volkswagen AG and BMW among its key clients.
On an adjusted basis, Aptiv earned $1.69 per share for the quarter through March, compared with the estimate of $1.53 per share.
Overall quarterly net sales fell about 1.5% to $4.83 billion, compared with analysts' expectation of $4.78 billion.
(Reporting by Nathan Gomes and Shivansh Tiwary in Bengaluru; Editing by Shilpi Majumdar)
