Aptiv(APTV) - 2024 Q3 - Quarterly Report

Financial Performance - Total net sales for the three months ended September 30, 2024, were $4.9 billion, a decrease of 5$14.8 billion, a decrease of 2% compared to the same period in 2023[166]. - Net sales for the three months ended September 30, 2024, decreased by 5% to $4,854 million compared to$5,114 million in the same period of 2023, primarily due to a 7% decline in volume[181]. - Total net sales for the nine months ended September 30, 2024, decreased by 2% to $14,806 million compared to$15,132 million in the same period of 2023, with a 3% decline in volume[183]. Operational Metrics - Volumes decreased by 7% for the three months ended September 30, 2024, reflecting a 5% decline in global automotive production[166]. - Volumes decreased by 3% for the nine months ended September 30, 2024, primarily due to declines in Europe and North America[166]. - Global automotive vehicle production decreased by 2% for the nine months ended September 30, 2024, compared to 2023[169]. - Automotive production in China grew by 10% in 2023, following a 3% growth in 2022, with expectations for stronger long-term growth driven by rising income levels[173]. Income and Expenses - Operating income for the three months ended September 30, 2024, increased by $57 million to$503 million compared to $446 million in the same period of 2023[180]. - Net income attributable to Aptiv for the three months ended September 30, 2024, was$363 million, a decrease of $1,266 million compared to$1,629 million in the same period of 2023[180]. - Selling, general and administrative (SG&A) expenses for the three months ended September 30, 2024, were $331 million, a decrease of$29 million compared to $360 million in the same period of 2023[189]. - Interest expense increased to$230 million for the nine months ended September 30, 2024, from $214 million in 2023, primarily due to new debt issuances totaling €750 million and$2.5 billion[194]. Research and Development - The company invested approximately $1.8 billion in research and development during the year ended December 31, 2023, including about$492 million from co-investments by customers and government agencies[175]. - The company holds approximately 10,000 patents and protective rights, reflecting its strong focus on innovation and technology development[175]. Restructuring and Charges - The Company recorded restructuring charges of approximately $16 million and$125 million for the three and nine months ended September 30, 2024, respectively, compared to $28 million and$81 million for the same periods in 2023[192]. - The Company expects to incur additional restructuring expenses in 2024, primarily related to manufacturing footprint adjustments, with approximately $45 million allocated for programs approved as of September 30, 2024[192]. - The Company plans to make cash payments of approximately$80 million over the next twelve months related to current restructuring programs[192]. Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2024, totaled $1,386 million, compared to$1,272 million for the same period in 2023[230]. - Net cash used in investing activities was $1,084 million for the nine months ended September 30, 2024, primarily due to short-term investment purchases of$748 million and capital expenditures of $664 million[230]. - Total available liquidity as of September 30, 2024, was$3,897 million, including cash and cash equivalents of $1,054 million and unutilized credit facilities[207]. Market Conditions - The automotive industry is experiencing significant inflationary pressures, particularly in raw materials like copper and petroleum-based resin products, impacting operational costs[178]. - The global semiconductor supply shortage has led to increased pricing pressures, with expectations for continued volatility in semiconductor supply costs and commodity prices[178]. Investments and Acquisitions - The company acquired Wind River in December 2022 to enhance capabilities in software-defined mobility and intelligent systems[171]. - Aptiv acquired 100$42 million on April 3, 2023[213]. - Hyundai invested $475 million in Motional for an additional 11.7$32 million for the three months ended September 30, 2024, compared to a benefit of $1,312 million in the same period of 2023[180]. - The effective tax rate for the nine months ended September 30, 2024, was adversely impacted by the European Union's minimum effective tax rate framework, which is set to begin in 2024[197]. Debt and Financial Position - Aptiv's gross debt stood at approximately$9.7 billion, with available liquidity of about $3.9 billion as of September 30, 2024[176]. - As of September 30, 2024, net debt was$8.5 billion, indicating a significant leverage position relative to cash and cash equivalents[206]. - The company has no off-balance sheet financial arrangements that could materially affect its financial condition[231].