Feb 2 (Reuters) - Auto parts supplier Aptiv reported a lower fourth-quarter profit on Monday, hurt by a higher tax expense, sending shares down about 3% in premarket trade. The Trump administration's
Aptiv Reports Decline in Quarterly Profit Due to Increased Tax Costs
Aptiv's Financial Performance Overview
Feb 2 (Reuters) - Auto parts supplier Aptiv reported a lower fourth-quarter profit on Monday, hurt by a higher tax expense, sending shares down about 3% in premarket trade.
Impact of Tax Expenses
The Trump administration's move to hike tariffs and pull the plug on tax incentives for electric vehicles has weighed on the industry, at a time when consumers are navigating inflationary pressures and spoiled by cheaper Chinese cars.
Sales and Earnings Forecast
Aptiv supplies wiring systems, high-voltage EV architecture, sensors, software and advanced driver-assistance systems that are crucial for modern vehicles.
Market Reactions
The company's tax expense in the quarter rose to $196 million from $64 million a year ago.
It forecast an adjusted profit per share between $1.55 and $1.75 for the first quarter, lower than analysts' estimates of $1.92, according to data compiled by LSEG.
Aptiv expects its first-quarter sales to be between $4.95 billion and $5.15 billion, largely in line with estimates of $5.03 billion.
During the quarter ended December 31, Aptiv earned a profit of $138 million, or 64 cents per share, compared with $268 million, or $1.14 per share, a year earlier.
Aptiv's revenue in the fourth quarter rose 5% to $5.15 billion from a year ago.
(Reporting by Nathan Gomes in Bengaluru; Editing by Sahal Muhammed)
