UPDATE 2-Delphi profit strong, but third-quarter outlook may disappoint
(Adds CEO, CFO comments, details, stock action, byline)
By Ben Klayman
DETROIT, July 31 (Reuters) - Delphi Automotive Plc reported stronger-than-expected second-quarter profit on Thursday, but offered a forecast for the third quarter that could fall short of analysts' expectations, and shares fell 0.4 percent in morning trading.
The auto supplier said it would restructure in South America, where revenue slumped 24 percent in the second quarter.
"The macro environment in South America just continues to deteriorate," Chief Executive Rodney O'Neal said on a conference call.
Delphi expects a third-quarter profit excluding one-time items of $1.10 to $1.18 a share on revenue of $4.2 billion to $4.3 billion. Analysts polled by Thomson Reuters I/B/E/S expect profit and revenue at the higher end of those ranges, at $1.17 a share on revenue of $4.32 billion.
Net income in the second quarter rose 4 percent to $382 million, or $1.26 a share, compared with $367 million, or $1.17 a share, in the year-ago quarter.
Excluding one-time items, Delphi earned $1.42 a share, topping the $1.33 per share expectation of analysts.
Still, Morgan Stanley analyst Ravi Shanker said it was a "low quality" beat and results were "tepid." He said Delphi's operations were mostly in line, and results were helped by lower interest expense, tax rate and share count. Continuación...