APTV - Earnings call transcript Q4 2018

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Operator

Good morning. My name is Amy, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Aptiv Q4 2018 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. now Vice turn President would to call I Rosman, Elena of Instructions] like the to over [Operator Investor Relations. begin may you your Elena, conference.

Elena Rosman

for operations continuing fourth other ir.aptiv.com, of The along items well press our financials and are the with Good special you presentation, the of measures first review our our address XXXX GAAP Thank included between of and be both today’s with conference as the back joining found earnings exclude non-GAAP prior can release. everyone today’s year at today’s quarter earnings follow Amy. Aptiv. and and for forecasted will reconciliation as quarter full consistent Aptiv’s restructuring presentation quarter at actual To you, call. the and slides and our fourth and and morning for to thank outlook financials, calls, in

a Aptiv’s be future forward-looking slide that to on SEC statements, our disclosure we turning different cite be materially performance, reflects which performance financial and our in from X for Now filings. other XX-K actual reasons of view which for Form current may

turn Joining us and and and provide detail. that, results financial President for Vice call in Clark, today outlook Kevin to XXXX the CFO to and will over on I Massaro, more a With will will President. Kevin update the cover the Aptiv’s Senior strategic Kevin would Joe Clark. business CEO; Joe be then on like our

Kevin Clark

about through provide will key markets going full and financial Joe some then highlight overview the and of everyone. milestones XXXX Thanks year, we’re on XXXX. take Elena how out for earnings share report results as October. sustained an and above our of detailed a all profit fourth good visibility to you and the thinking perspective challenging begin guidance providing Revenue, our testament pleased more I'm end by morning several quarter backed our in for strong per we to to outlook drive even end well market. performance in operating provided to I’m finish a XXXX, a XXXX. as XXXX finished

of green the year, market, revenue our safe, exceeding advanced full to in prior year awards The reinforcing portfolio aligned strength record connected the for of resulted business our full billion our trends. XX year technologies mega the technology portfolio points totaling For growth XX.X and billion of billion. XX.X the record over of of strength $XX of also new represents

also model true performance validates financial XXXX solid, deliver our environment can in cycle Our performance. of that any for robustness business that’s positioned the

the to New focused Year, remain we delivering As off on we value laser kick our shareholders.

current the it’s assumptions, geopolitical be to macro in planning which Given and cover XXXX balanced more we detail we’ll believe in our shortly. environment, prudent

confident been and that intact about future. Aptiv driving the our in future, confident invest while Auto trends X.X the to as perfectly is term business our long I’ve more are deliver we remain fundamentals and earnings our However, never continuing sustainable to revenue and growth, of positioned excited on and capitalize

is the executing Turning significant business strong management number of green world made connected of in focus fronts the safe, sustainable slide makes to progress more a and our a building strategic We team. XXXX. that X, on

systems our have confidence to and strong integration customers and had levels in customer market business help very higher we over giving right awards, revenue and adapt electrification the a software, we that record growth advanced reinforcing required safety, new First, revenue capabilities, outlook, us connectivity. growth our computing

Aptiv backlog support as term for KUM record development a Active deployment reinforced to flow services, creation. additional of and long and our of vehicle smart further both leader capabilities, market generation engineered and inorganic and architecture disciplined investments initiatives awards, strategy Safety our Second, Business the a our the establishing and our in including driving organic acquisition of further We connected fund Winchester components. to value shareholder automated Interconnect funded capital growth strong cash capacity

repurchased we addition over year. $X.X advantage half which course of the over taking stock of market In the the of of billion disconnects fourth was quarter, in

we through share XXX shareholders over repurchases million in total, and So to returned dividends.

the growth delivering far to flexibility our maniacal Moving the be and breakeven in increase right growth. to the slide, the cash our to of we competitiveness position flow of structure cost always lower earnings constantly our and a and as structure cost investments, to our of while about fund model incremental working remain improve the business

we’re in While means been for on finished. journey this time, never some continuous improvement we’ve our focus

on of overhead focus are spinoff to and of our resources to awards. costs. XXXX. DNA stranded the cost-related efficiency, also manufacturing naturally during were reduce critical Our eliminated overhead wired engineering actually in and pipeline executing delivering material to Further, and business million new is our XX Powertrain

machine we’ve operational efficiency platforms us Our mindset software other to software, to intelligence, future. reusable improve continued maximizing focus effectiveness our summary, continuous while meaningfully and on us learning expand our engineering, than systems engineering in allowing engineering spend. grown and improvement allows helping [added] efficiency, In methodologies, faster artificial and with capabilities in our tools is on us invest

XXXX slide see fourth XX billion. quarter XXXX record of you could new the bringing X, business of billion total X.X XX billion, to just well bookings Turning total above over

unique driven signal leveraging prior both are and of central competitive domain X.X solutions, year. of X.X of billion. leadership billion bringing experience These our in XXXX technologies safety, voltage perception from active the voltage across totaled the part reinforcing new double connectors, customer customer topping level awards experience these mode in advanced As electrification won compute. multiple awards by last position user solutions. power to of architecture, direct record including awards widening bookings $X result and X.X integrated Infotainment several high X Beginning X.X our awards and and where high and billion, year’s plus safety scalable components engineered awards, advanced [satellite] the in amount systems. controller new active with include we our booked tactic I programs, user billion mentioned, customer safety X billion In controller billion

system leverage unique and hardware functions, brain and vehicle. features validates enables the and momentum optimizing we’ve of new software that new created ability that continued our the Our nervous or foundation while in cost total the business the to and system bookings

safety highlights XX% user on segment fourth points and sales to over up Turning X, XX slide advance that’s were experience for market. the quarter

and Continued strong safety respectively. active consumer demand and for X% growth of revenue solutions XX% infotainment drove

across PSA increases, more for as six awards infotainment driven our chassis new safety, systems such development and domains scalable active including maker XX. need architecture propulsion, several our including Xth integration highly active ability satellite of recent body, new the XXXX example multiple As represents which as compute leveraging awards our and The optimized unique solutions total being business shown safety, expertise functional customer software central offer to bringing well collective vehicle models our our our XXXX is complex active win is deployed a awards safety. with here and award has multiple in Conquest solution to across in for most

mobility expanded excluding of points positioning Finally, competitive margins operating demonstrating cost of XXX our year, and our basis investments, structure. for the benefits the the impact

high signal focused speed on enable that our X, is will and including generation segment the solution architectures advance to vehicle next of slide distribution power power mobility. shape technologies electrical future data to and high Turning

products up XX% points full driven electrification For volume Jeep high Cherokee. validates very by market despite award voltage revenues were X% the scoring on need architecture of growth portfolio This double of range given markets. lines. the growth revenues increasing our auto convergence In this fastest weakening over confident one over and compounded high of revenues XX% recently are electrification value, we high benefit across over the ability year-over-year, In million, types. XX% breadths trends, of sales the line and underlying representing perfectly product the awarded that’s excess rate nine position X.X a to in macros, should from billion the our XXXX, bookings, the in depths reach business Grand both quarter, approached grow to over profitable engineered leading high segments, for high for sales continue XXX vehicle optimized growth over voltage period. architecture summary, increased solid the for voltage positioned most we electrical to that the of our Based in product our XXXX, and in and it new value X in of vehicle components. a for on that’s making architecture, Under growing our industry digit high voltage we’re

X vehicle production some slide more macro outlook that underpin landscape to provide the key our for context to heading I’d on the in the year. like Given assumptions XXXX, challenging for

for global know a vehicle the we I the expect it’s in softening level, continued world. the production regional expect you. be ahead year down perspective, many to of with half. X.X% of a I’ll From we for of down we to see as and China As first start XXXX, top to vehicle X% mind around full production look At

We X% XX% and infotainment continue digit driven forward. active electrification, we region, including experience lower to strong product first preparing market year. production the in expect quarter we’re growth to industry by high and in revenue will volumes for decline growth this areas voltage safety, the vehicle And key while structurally full double in for over going our

a XX%. being salary prudent reduced almost structure cost by We in a cost perspective. As from region result, we’re this

declines America Turning and single to in production the other low regions, Europe. we expect digit North

expect revenues also grow excess our production, new to and of similar given market China, in However, we gains. launch share to vehicle cadence

and more expect macros our strong connected XXXX. technologies again contributing customer regional safe, as more the green market in outline platform growth and offset over shortly, industry detail in Joe than balanced mix to will once and we of Finally portfolio to

over CES. to go it highlight like to great the through another just year numbers, turn I at Before Joe I’d to

As of alone. we’ve accumulating CES Las talented of the Vegas on past, the streets XX,XXX provided done smiles we’ve our of the automated nearly during in week rides

demanding. strip, customers, green In hardware and [list] which ride And transport we’ve VIP as the launch vehicle at are and connected advantage While well near star rating enabling over plays customers the a Aptiv underscored the on and strategic meetings perfect in of downtown earlier for a underscoring of last gave executive senior we our integrated the fully airport, the increasingly are took delivering we hosted growth our Further total, in safe, also the customers customer operations our (inaudible) of as experienced. our over X.X of of and our from from the public. our to and vehicles receiving that a the optimized number we had investors, destination number and quality around advanced customer five the since and solutions a software normal partners visits conducted supported or architectures XXX its out rides XX,XXX year, architectures. look general the investors network,

value from add advanced our showcased solutions. across the display in-cabin with strength staff unparalleled Our or cloud perception full sensors our systems cabinet services the experience, technology data to vehicle perception in and safety,

As is customers compared they given to appreciate our need delivering to increases, vehicles critical the high architectural right future. that automated today, feature the the rich, in the

a the making as classifying brain the vehicle, the and of both architectures, the we capable conceiving, of the As Aptiv future of only of system advanced the result, integrated provider position real. and nervous delivering mobility

the over hand fourth take I’ll and outlook for us review Joe that call quarter with and through results the XXXX. full to Joe? our to year So

Joe Massaro

we FX saw everyone. We launches production, up safety of on reflecting rate income experience strong EBITDA and XX, and in contributed above gave partially revenue the operating half our while recap slightly EPS benefits sales than of continued upper million the guidance, of of X% the vehicle of and both $X.XX, in ramp lower at slide with the roughly billion future operating share of in the end fee, growth X%, Kevin growth XX Thanks growth. and October. investments midpoint our user program Earnings lower the a $X.XX commodity of the financials or guidance a $XXX in came the per $X.XX and of advanced and points quarter. by and and headwinds earnings quarter strong million back share and expected of count good signal in fourth quarter, morning new of up operating X.X higher the revenue, the share and upside for Starting power solutions. income reflected a per volume $XXX and a income of tax combination offset

$XXX was and favorable performance. growth flow reflecting cash operating earnings capital Lastly, working million,

of expected Winchester segments China launches growth market, grew regions continued production had up benefiting in markets. when X income saw Turning in From over and Slide all platform we over a continued to drove slide commodity saw ups Europe FX and America partially Tariffs safety both perspective, the $XXX XX strong active income in market, X%, we’ve $X which over the sales approximately market XX, over double of growth were retail volume headwinds. lower up points year, market, market China launch points world, driven Interconnect. X over price X% looks strong offsetting operating help quarter of commodities. ramp volumes. were vehicle despite performance our down addition and offset unfavorable and to multiple the past than over a from points the the and XX adjusted major in of in production, FX a was the new Operating year-over-year. and by Europe at growth million infotainment digit weakness for North decline million.

performance in Earnings headwind voltage investments to and share per reflecting active from were safety, growth yielded the mobility of offset as spending. strong our FX $X.XX and of mobility. the favorable in and Strong performance, areas on Our including share conversion, income. impact quarter, earnings electrification, for price commodities tax shown volume in fund operational offsetting volume a other X% FX up XX.X%, infotainment in operating slide sales and the including higher growth, higher Margins and high year-over-year quarter, performance commodities on strong key unfavorable conversion $X.XX continues adjusted walk by the XX. was operational per investment

estimated believe our was range of to long and actions. by XX.X%. an year, from is in this the XX% we to improvement our term For XX% sustainable footprint of tax prior is guidance and driven range XX% XX% our the rate XXXX portfolio recent

improved to XX%, experience safety and strong user of volumes quarter, Moving continued by the the the growth statements performance. safety driven manufacturing as and Operating impact XX%, advance the before up income grew and up accretive driven user new material mobility X%. growth higher well experience the infotainment for revenues grew on slide, investments, by and next XX% as and volume launch of benefit active and

year for this increase launched early investments totaled new the year. funding platform automated million. revenue year-over-year, our the million $XXX mobility development segment. summary, $XXX will next year experience advance consistent expect in another and our In which continue mobility with operating user Our generation and with an for approximately and This XXXX; of to outlook driving we our million, in full vehicle software of roughly previous a of strong be $XXX investments of leverage represented safety

dilutive next or globally. electrification market, Turning the X% to signal Operating and for grew quarter, up power North sales solutions on growth program were points the vehicle over FX and vehicle production high for commercial strong despite robust new driven and slide; X%. in America, voltage of income a X the by adjusted commodities impact and revenues launches lower

Euro and margin the by Chines weaker and As headwinds we FX half of translational rate and commodities in impacted the transactional back was of have to year. the discussed, unfavorably related the both the XXXX effects in RMB

the continue XXXX of in these I’ll outlook a been our first headwinds moment. cover have contemplated which We half for to and in QX, detail more in expect in

commodities. side more and of efficiency unfavorably production our build reinforces resiliency. to a business prove as as made FX on lower slide Despite a we both to in robustness global recap of second XXXX. midpoint income, in to progress positioning full and our cash well the all portfolio turning came said sustainable revenue, for of testament half, and and the That’s including in and year we’ve business Now financials; model our macro guidance a February operating above flow earnings of true the the the challenges back XX, vehicle operational

and Turning market long to again and more technologies been slide, Revenue tariffs, to of the their in unchanged term remain which tenants of the financial by XXXX, impact our we our expect framework growth above comparable are relevant earnings core of ability portfolio and the performance detail driven sustain next in address shortly. growth. before I’ll

on flexible continue enables well record investments as our our Our fund key relentless growth. performance cost The with year. track the Kevin more in and lower as the will operating income continue continually areas year, our puts launches take us record vehicle than offsetting This reference right XXXX out lays walk operating focus the from sustainable efficient earnings in the improves along of workforce for to Volume growth production on earlier. next structure. and

pricing FX year-over-year rate. headwinds to annual see impact commodities. with Our on X% line are expect unfavorable run in current estimates, from our and we historical an Based

Our productivity material our already expect than our roughly tariffs underway, more with costs the in to US-China now mitigation and be investments engineering $XX and inflation. manufacturing tariff we’re higher cost offset we directly, lastly, reduction and And addressing will strategies actions XXXX.

focus earnings result cost long As to and can volume confident our levels. of a grow productivity we’re continue the forecasted we at on running improvements,

next X.X%, to revenue the be the to slide over the the over of in $XX.X with global growth X% down production of year, Turning despite midpoint, $XX vehicle billion, for range for of market up to guidance; billion XXXX we X%. expect

Looking XXXX. at we as will our XX%. experience, near continued infotainment of grow double-digit we revenue the to safety and XXXX year, volumes in starting with driven we in experience last prepare strong growth as digit, Cockpit strength in and previewed user advance next And active segment in safety launch XXXX, Integrated wrapping gen expect launch mid-single Controller user in and by revenues

result acquisitions. share of range first $X.XX revenue tariffs, $X.XX share In earnings solutions, a signal roll-off as the XXXX In income Operating segment product XXXX, flow mid-single in accretive to continued per before and across billion expected at share in the over year-over-year with see power by XXXX. driven and recent flat digit growth growth addition, of midpoint billion again the tariffs, of growth. mid-single up excluding the half per benefit audio count display impact of in the $X.XX we $X.X we’ll line cash up and impacting expect expect be a of is year-over-year, X% to midpoint we the as to digits with the the

looking tariff as will As it into discrete a those actions going at in a perspective, relates are process number mitigation executing XXXX. the to we reduce tariffs, are that of of from and exposure items

Tariffs exposure approximately As $XX to in in XX, estimate the our reflecting experience. exposure the the user safety reduce power been impact XX a previously $XX primarily we US-China communicated. of XXXX, million signal tariff to and million solutions we million be work and with that’s result, done approximately advanced the will remainder

For China down the the XX% and Operating first midpoint of impact to commodity down X%, $XXX a production growth vehicle billion outlook $X.X or slowdown million income are and $X.XX over X% in global at quarter, EPS to revenue China respectively, range in of expected quarter. X expected is the midpoint points previously. in reflecting the our before billion, mentioned with tariffs the market, FX given at $X.X the production and be the for headwinds I in of up

higher for of continue as to we the and well engineering to we lines. growth for spend, despite XXXX, technologies, the be with production, our product will to will $XX tariffs invest summary quarter in key in continue million. estimated outgrow portfolio future our In market the of and As relevant are vehicle mobility the reduction

and in even mentioned, on environment. down to Aptiv Kevin improving for do earnings we cost positioning grow cash relentless this to a our As continue flow structure, our focus production

growth We XXXX shareholders. end Winchester, business. in dividends over our in power through over which signal strong since of billion earlier, such on Kevin bringing growing highlighted safety as to executed shareholders $X.X cash business line in repurchases to accretive million for lastly, we solutions Bolton our and $XXX and acquisitions, XX the and diversification support create as to to (inaudible). our And billion product returned invested geographic value slide invested the bookings expanded IPO. and our to we fast total again and deployment share active market Turning strategy We capital in and KUM XXXX, to shareholders $X and

our both Looking strategic to forward organically our investment and dividend. well rating reinvesting a and balanced inorganically consistent a in paying allocation maintaining competitive framework, we’ll aligned focusing to credit our on while grade business to maintain and capital continue approach

share call remaining Our billion as And the his differentiator returning opportunistic bolt-ons an roughly attractive with share provide M&A effective advantage new And market disconnects, repurchase is I’d value advanced strategy a provide our accelerate we’ll buyback we and hand as the Kevin like authorization. markets. diversification this major To million market important to can to that Aptiv be believe end, to extent of announced focuses to a our well which to In technologies capital new for also the our to speed deployment take that lever cash market and shareholders. end access incremental in that summary, $XXX shareholder on to on $X generation. we accretive for we closing for current and remarks. authorization, back today

Kevin Clark

Joe. Thanks

up we share slide more Q&A. year wrap macro our where per me earnings a up Aptiv, flow, Let on cash XXXX for XX commitment, for first great revenue, environment. challenging in income, before operating a even financial and delivered was opening on

growth, underscores are performance we’ve the journey been technologies the our safe, having our true continuing and the the future execution strategy. and while enabling to to advanced driving cost on right performance invest demanding. of increasingly right processes green that cycle in inherent earnings connected portfolio cash customers deliver right solutions our The prove to Our flow innovation and the structure, by and and people

our in management excited outlook value has record in never our delivering focused future. beyond. confident perfectly Looking XXXX competitive today, cost capital remain trends, vehicle Aptiv this and continue great position gives Auto on ahead, driving content senior key the done X.X for value global to increased improving our been on the strong of while our enhancing to We our which us upon positioned track shareholders balanced our mega and more share is about laser capitalizing base We’ve gains. and market confidence deployment. team and building

Q&A. robust downturn perform resiliency, that, to model, predictable With open more any a have we macro result, line up in better and with the sustainable for a let’s environment. position business As

Operator

Research. [Operator Galves question Instructions] line open. the line Wolfe from your of first is comes your with Dan Dan

Dan Galves

QX, Regarding the about China, the to that what’s in going and a talk and three quarters? around it the year. Can the underperform in to significantly next QX over in on then outperform looks like little market course bit you of turn what’s guys going expect you

Kevin Clark

why Dan, and China OE don’t can mix, and it response. its at the in I start OE. to quarter over Kevin, augment down you Joe certainly by when mix the specific China within our in first comes growth look Really market and specific platform

are of QX at some So the three, is we’re go-forward we particular during the that lapping, more significant there for those a that schedule first couple one dropping see we OE’s on seeing reductions And below the look quarter revenue net two the and scheduled both but of result market. our new and production and just beyond, platforms. of activity launches stabilization schedules, as actually

QX. So are schedules in for significant four fairly three that OEs or reductions seeing we’re there

Dan Galves

to anything de-stocking Do like following the of it, think launches then that. your QX, year heard in just is counting guess the in are and or inventory on like balance of Got related on anything about you delays that. have launches big up some and in you this of and kind I

Kevin Clark

respect But inventory volume significant portion to its XXXX growth to tied throughout user there’s quite major is schedules XXXX, infotainment, and continuation. would that say a With vehicle, and continued experience clinically QX in QX, for experience. of a electrification, safety from so active certainly that that’s just standpoint, I no launches a reduction. inventory rebalancing or we strong

look said on last you And in quarters. that aspect with But QX, we’re visibility that taken frankly to As place as is see you market, also China consumer seen we respect what inventory are quite But based not at a delays perfect. as demand there significant in is know, we on though QX to that’s haven’t coming through on less they the betting programs. launch down. over having planning But levels two it’s or any. than certainly

principally platforms. on passenger car schedules been So platforms, volume it’s really existing

Operator

Your question RBC from Spak is of your next line with Joe, the Capital comes Joe Markets. open. line

Joe Spak

like in clarification a X%, XX little maybe number. that looks look revolving a I it are at slide adjusted May be like, first bit of growth acquisitions of if the

So, also guidance with I your how then added, was wondering dealing the growth you’re acquisition out for if in how ’XX? much you and X% over call that could market

Joe Massaro

so integration, between up there’s there as smaller things Joe sort that plans. was started some on a that got – particularly so some KUM, KUM’s pick out volume coming actually move the of deals full of of to and then of to and there, that’s that’s out coming X.X it production our little the getting numbers. one’s it deal about of to of QX call mix, with about call China tariffs, for two points a but growth those that’s from deals XXXX X coming

Joe Spak

Sorry, ’XX points? two in ’XX or

Joe Massaro

QX sorry and X.X in points ’XX. I’m ’XX. in in X About

Joe Spak

China for now, mentioned you to assuming, [tier one] was the you And XX% XX%? like the is before going deal? that missed then just you are do stays fact numbers the growth XX%, you on mitigations tariffs, sorry I if assume in at through is this, And but your it exactly what gave it in

Joe Massaro

Yes, so that’s right.

XX okay. the So we’ve and total million got exposure, that’s

this evenly The right, point in XX January the through throughout quarters. in at then at XX% and got stepping is February, point, and So QX then QX XX% three We’ve out we’ve balance the the up to and the but our the the customer last control the approval number full they take the of when remediation this things. types will of effect, get some extent of of guide left for its XX those rates to we they number when and million at a assume in lower March, in actions, year.

and We and some XX remediation may what be where know the flow. of, actions the lower the the worst is costs those case it plans from more changes could I we That on remediating sources based XXXX. tariffs, for place we point call you the have of call I’d sort of that this course multiple in in source easier at XX. the to fruit product, fourth I’ll Those make over could for XX some hanging the what So taken made have now in out from so in progress location, was product quarter are could another says it’s there.

Joe Spak

ideas So this, to on say through, you not unclear go fair you about guide? to how have them can your but counting in some mitigate they you’re whether come

Joe Massaro

Joe than to mentioned customer wholesome got the say Korea But going then obviously we put we a more Korea, line would has production to got up I we’re started. it I out there process ideal, China, as of to is that in get in validation. its

we’ve So sure not that’s really they’ll got not the ideas, we’re issue with work. the that timing. It’s

the We’re things, looks like customers, what exact they but sure just timing sense. makes not by in the if that time approved by motion on we’re get

Kevin Clark

are these we assuming not Operationally go-away.

require those would other reducing $XX validation. support million to team whole impact. that said, original so North customer chain get as and the it. wise driving reduce overall and estimate XX that Joe the activities, And of the of specific Customers to be we’re list activities some but manufacturing in and have a is continuing those exposure don’t Joe to on been engaged, execute to supply result So very to control seems we to we in reduced expect actions of certainly the fully actions, America

Operator

Bank. line Deutsche the Emmanuel with is next Your comes line from of question open. Rosner your Emmanuel

Emmanuel Rosner

expected Wanted you’re while the little the one way you your of of the was and framework, best to like about the day context of sort in performance term recent ago. that ask it communicated a longer your, in

sort XXXX, the in to market call over X XX% through think did beyond you on points market XXXX I X% other points on way for some to over you the market, of similar revenue used margin framework are the particular in type is you front but then of X over seems within like framework like XXXX. still there, there that. It planning upside or X X in the maybe Are and the for, the we still around. question side So,

think XX XX looking bps the I we of that. beyond be XX may year that had to expansion been in initially,

it I to we this is it excluding you grow expensive as more macro fair the Is essentially seen that expected. to either think business? some expansion even as headwinds, haven’t that much of say

Joe Massaro

as in It’s Kevin Joe chime and can well.

it. side we’ve revenue the about on think I talked

we’d are be. continuing to about XXXX mid-year. that fair at to business thought September But ahead be we’ll be of revenue refresh we that day this safety we’ll thought And in updating Back at is continue. where we obviously longer the where the mid-year our of updating we high the say for time. certainly investor as Kevin bookings It talked voltage and of outlook. we term it in outlook as numbers and will like ahead running obviously ’XX longer particularly term active move see they’d be We’re looks though the running with that

of to say really performance I’d two OpEx margin. couple in rate, margin and impact, margin of and to rate has relates there’s the as one, our there’s the distorted somewhat it point the our FX things, commodity As XXXX rate on

do we the the think So the point I the first where original gave to original you half And got from that through guidance continue ’XX. that we expect or look of framework. to through

even safety like didn’t voltage, of will sense outlooks high to decision investments be right, volumes make in I The active though and China, a and thought the and We’ve as mentioned with We’ve to high a of make the a seen pressure of continue in think for back I made the spend. This it particularly to in XXXX like pull be this we back we’ve a through decision in of the a topline China year pull on electrification, will longer other and made safety, active bit for thing first couple view short our quarters things sort those term that XXXX. businesses mobility, half certainly term. voltage the to performance and XXXX. respect operating

work this is this more short through of do longer to a of right term quarters committed Obviously a there, through here about we operating investing at XXXX thing in headwinds on if that couple the unexpected as China. point. we’re were those tariffs talked think is impacting So but as well. again working we we’ve our term through But to margins performance, there it’s

Kevin Clark

we vehicle over seven to won rate north those smart on or level level has next though a an three year perception advance Joe’s systems, that the compute, our near win the well or architecture, in and win program, probably technical winning competitive as two, advancing what the know feel (inaudible), result term centralized those any XX% revenue over I’ll net and as technologies been, significantly rate. enhance to the continue safety And programs generate programs two average that comment, knowledge and active we of traditional – the we’re just beyond. result of on just there’s example, for in is closing significant real XX% we’ve given in and that XXXX build opportunity around and will around as you

growing though to require it’s it’s said even in technologies, in just seeing that engineering So production. rapidly the as very vehicle smart invest our market capability, in a a to that near decline view term continue Joe we’re advanced

Joe Massaro

overhead focused Kevin cost And aside side we’re as the with of mentioned, the very structure. still on that

So China take salary costs. down there’s the taken been now some to actions indirect in of

and you So to high the cost our lot see other product a we’re is focus very specific continue investment, invest willingness to to growth continuing of elements on to lines the now.

Emmanuel Rosner

ask impact US specifically And the assume That’s I’d I tax XXXX and a no (inaudible) I for have has to follow-up, sustainable. hybrid specific it quick a you real guiding you But to tax optimized are great closing rate and that color. been the all? which there’s at then about a you any looked hole, impact in though loop figured

Joe Massaro

there Yeah, and no is impact at point. we this have

tax taken the us. impact changes that an the US So very but a year we not just does has our now, have active for team law that on rollout past look and the been really have of at on

Operator

is Your next the your question Leiker David Baird. open. comes line line David from with of

Joe Vruwink

Other some during on within your can QX. that assumptions positive be the that platform the David. better walked China earlier, industry views? of some you relative to This difficult or Vruwink guidance than than meaningful volumes goes in discuss like worse take can negative exposure more as considerations or is swing the assumptions through for mix mentioned it being that like other rate year or you the Joe you Any

Joe Massaro

Kevin’s It’s of be as say about equivalent voltage would running And balance that we through think rate the I your – of would a ahead of high talked take expectations, I comment. as I hard think Listen, I XXXX and think obviously active comment but inventory out very couple – think are are they I of that OEs in we’ve work made. there comment a platforms, it’s more some of balancing China inventory. sort through QX, specific coming on schedules the that got Dan safety,

side safety, it’s type So them not they’re a cars. China. not question without It’s not so rate on very the any making making it’s more making the production of vehicle, actually than of changes in they’re active not much, take they’re the

Joe Vruwink

of you because And have follow-up, proactively be job that At going one a to categories a made printing beginning just forward audio, display they’re and done Aptiv some doing elsewhere? and in you mentioned really of over Delphi product managing there. good portfolio. you’re decision the lines the you’ve to call the strategic product refocus years rolling Any the look off

Kevin Clark

that was the that we’re our I to direct of it’s off standpoint like display well frankly point value add that this of vehicle the from as buy better conclusion areas some concentration say smart our display see, we value are to business, and the that that vehicle the in piece safety players really compute none. a as centralized The at of of whether of margin and customer in architecture, come resources profile the as display the move business active of allocating and quite electrification. going lot The go out time. and Not to technology hardware. display businesses to

we places a much real and So rapidly component higher. is position growing market’s and competitive technology the our where strong have

else. So something better regularly we than that But positioned forward it’s for ‘re we look now, it. we display we other wouldn’t evaluate. expect anything But as

Joe Massaro

not wind display to we’re of put it in to it it – And down. is, context that part business, we’re letting

it. stop on bidding we So

more the in itself. That are to than We display physical business the it total put compute of behind revenue about on to platform XXX in just screen context. a sort is focused million much

that’s bigger for going in a just phase out a about or it’s for the little million very So out this year quarterly given the XX XX sorry so quarter, to a million XX it’s the the bit a small it perspective. called in on overtime. million just or it’s product quarter. probably quarter quarter I’m line million XX We

Operator

with Your of open. Barclays is next Capital. comes your question from Brian line Brian the line Johnson

Brian Johnson

Just towards the a more domain about are those are the couple gen different its then of you of and potential multi a than us can hitting kind backlog. or are they often question around If cockpit kind questions, sort tell longer similar safety. or and And to more pace two wins, same flavors controllers. (inaudible) compute the the term, on controllers first, multi they when of architecture ask of the actually next it you might what electronics number outlined of the be various after I discussions just those of question domain

Kevin Clark

first. answer I’ll Maybe last the

very have I’d relatively end we program up And activity. smart that on particular are about today second large with development vehicle roughly conversations likely dozen global So say a a engineering OEs we’ll and one customer, the in architecture with with soon.

on focused there are platforms. number re-architecting who more of vehicle centralizing very So, OEs advanced are a compute technology the the effectively and

won compute roughly X are XX or in yes those and multi XX, the Brian. are domain they domain controller, I platforms central Our We’ve same. multi guess ADAS. Of around

really then are Cockpit and and that a that three couple, around or We powertrain. are two a and have Controllers couple around in chassis

So at concept for a time active from and it platforms trend OEs standpoint. to they feedback we’ll architecture are safety helping smart And on connectivity, the will ultimately the years, of a to vehicle that we looking we’re a of call that vehicle view forefront our we’re the consolidation electrification next we period out towards, with we rethink of build vehicle based that whole eight conversations though ultimately seven be be for rethought. them vehicle our needs build the or believe go solutions laid a or to through them firmly feel satisfy arise significant whether to vehicle of There it or for seeing sort over demand but customer compute that that. in process the from at as architecture be OEs

Brian Johnson

it gravitating your towards Eventually been or And categories. some related roughly rate but somewhat different connectors share value I of in win are been growing what’s earlier, share and the believe increasing in of second electrical the it higher is that more electrical, rate competitors might same, component in it traditional kind market their roughly and summer stuff applications? the your is XX% question, you ADAS XX% is to harnesses has on be is win businesses, engineered

Kevin Clark

been to in the part auto, on would the of portfolio of years, so is it’s And auto through couple last of that like where of well areas trying we’ve commercial as with we’re transportation Winchester, total, acquisitions like engineered gaining our an there. in of vehicle been is high market in that the some I say part gains push but share market within as outside KUM real of auto less component connector grow outside focused, over share the focusing like a

I maybe say, growing we’re side, growth basically a the little On based bookings revenue above. market wire at on would and

Joe Massaro

for were power close anymore. of we’re base Yeah good so to vehicle it’s and our within example SPS X business mentioned SPS billion segment Brian, The a base necessarily off that a XX% commercial this my a of small alone, not we that revenue, solutions. year over And remarks. is signal I at prepared and larger, getting growth

a So and vehicle lot and our connection distribution systems OEs uptake technology. from electrical we’re our commercial system seeing of

So share. I broadly say would speaking is that that business growing its

that estimate manufactured vehicles one half we’ve and business out often three content we mentioned, As talked of you globally. a and about every has on

sometimes that market So will safety. like it’s an lower growth is But little than, a its always lower share. rate be it’s it, some so business taking got in more than, active

Brian Johnson

in final Korean can and the the lower us for American terms give held better ventures have example, premiums mass end market, Japanese of versus your better different because, then than held for any And modelling you exposure much joint the up up sense question of of than China of OEMs more one. Japanese types purposes,

exposure terms segment and for your So us the of OEM kind you remind there end can of chart in exposure? pie through

Joe Massaro

domestic our top For XXXX, XX% in concentrated with XX OEs, the total that what of we call OEs. was XX% business China though really was (inaudible) of

OEs. given you XX% electrification, – tend was to know domestic safety, Chinese JVs. with a the where with Aptiv, we larger that it’s infotainment, So, be as active higher, the foreign

Brian Johnson

kind premium that, was mass of in then those market JVs? And

Joe Massaro

– tends specific do don’t here of SBW, look. FAW, back Audi the a to that higher more types I don’t I’m platforms. BW, I the of at have us. lot head, percentage be in exact my end number, with the can come there, can an It for a a it top We we sorry. the have we take of the

Operator

Your with next open. comes of from line the question your David is Tamberrino line David Sachs. Goldman

David Tamberrino

with think XXXX focus perspective your a on margin from compare safety relative for XX% I that around those to Want how million, growth business, active revenue XXX to probably corporate does average.

the will line As have that is the above be of y think a bottom it, when from growth do incremental continues perspective? on you business and what in corporate going type materially to average car, accretive

Kevin Clark

head the fill start breakeven beyond is begin the about, Joe we’ve to X those introduced specifics. you to XXXX I’d that I’ll in in beyond technology you’re margins. call the gives million, (inaudible) between formula typically we it above getting, – and average, talked when to and as I corporate $X the and But are as beyond as you then and expand expand rates you Today on revenues. a at usually with roughly it can XXX we’re can relates and say, right, and we’re margin that. XXX billion

So its standpoint. carrying profitability its a full weight from

Joe Massaro

That’s right.

it average and Kevin’s next its we little a corporate bit the year of now with XX points We have within comment that. on well spot finished You’re moving XXX north million. over and of basis –

cash flow So overall this the of at and this profitability business to company. is contributor the point a meaningful

David Tamberrino

the including or making? excluding autonomous you’re investments that’s But

Joe Massaro

that’s product the quoting, that safety line not would segment. Active excluding, we’re be just the

David Tamberrino

incremental XXs going XX% ADAS the this range then for the business? on So low of be high forward should side the probably

Kevin Clark

early much three. stage advanced would Yes, you kind solution closer plus it’s of those level level say some at launch a two we XXs especially I as approach programs. mid to more as three level That’s least of

engineering based revenue heavier I’d little engineering or programs and So that in goes of that of will be timing recognition those there’s and a incremental launch say that some on engineering.

Joe Massaro

I see over a safety in continue in XXXX. year loved that, way Dan and right, growth but points business below term, a will active but slightly will its‘ very next you meaningful in in just the of growth the longer again maybe XX

So we Kevin’s to so say and leverage probably are years continuing – of got the larger. to couple it gets are next better incremental estimate the you grow I’d a to mid-XXs the infrastructure of this the as point, for business, more

David Tamberrino

de-target XX-XX So it from was then autonomous you revenue delays focusing had XXX think and I about million. investments, the on maybe we

autonomous later for kind the any to growth day. the You’ll getting me OEMs supplier whatever probably impact business and consortium there going the understand in you’re an if having of to it put German that confidence investor or by immaterial the update potentially level want tell But you’re on the and prospect June together. there’s then your just

Kevin Clark

confidence say million XXX changed. level hasn’t of I’d in our the

that at them. out. across maybe investment contemplated our the discussions more quite some precise the So the how we’re this our number frankly day and this quite investor would revenue is at a play they have than as discussions, would and outlook the time, be there of number going part contemplation we And the – a requirement, give was under how XXX is things bit supplier million. lot we’ll respect for to a OE a With universe, those been of of on it

the we of originally and impact see the when forecast certainly contemplate on of market revenue at our share. and that estimated So any point that this we wouldn’t size time market

David Tamberrino

far going sounds And from XXXX job down the lastly for nice to the a like tariffs, XX. it so

a with of You’ve more the to but called production magnitude tailwind year ’XX and and through the savings to it timing, and Can else the customer trying if through at moving run how actions trying the validation. much happened you you to fine end of it of what the got those of lines be? in a that be not changed. hold would potential I’m us rate a nothings understand you’ll of would coming with couple share annualized

Joe Massaro

David had to along, worked this at when unfortunately least point it. have just commented we would Yeah we’re at not (inaudible) we or

of low going working care taken fruit, the timing hanging are doing, it’s projects. out to bigger of somewhere the some on amount being able we how move a to just of Again said of now on. timing, we’re production a November fair already with good and line at a it’s So we get a it know stuff December Like sort of being of that and else, we’ve our control. a action matter up lot and pick I of

got as this there the the we at we’ll So, we’ve in on keep update progressed through how on and XX year. that point running

Operator

Your line Itay next question comes Michaeli Itay from the line of open. of Citi. is your

Itay Michaeli

be Just a kind running QX. that the margins, first you beyond question guess guidance on of XXXX might mid-XX% implies I

was the the those XXXX just you to is cadence there anything talk margins and from a prevent year, little beyond will I about that So sustainably? to at more bit that throughout hoping running

Joe Massaro

particularly the with the tariff moves get that’s just the of longer We Listen, that about and this too track. But like XXXX these commodity profit think but we and think that’s framework, big the don’t in the take move to also remediation noise on some the but newer can overtime. given come deliver. back about transaction see ability focused, of know growth see We term focused long FX margin I Itay. the expansion stop we knock they and I right that – talk later but think in the that to what year, of FX a again in off that in and just moving for to would cadence we’re the this the the at on will I off don’t now way of we’re also if anything the right. will believe back it rate, what rates macros the RMB, range tariffs, point we time, in, think us framework to or and this came period on focus term you the that would of look as sort effect I particularly anything or business

Itay Michaeli

also what at M&A think just And you’re as influences and environment looking opportunities your get for same to update balance I my time? deals the after the the and well to manage mentioned you pipeline’s that an Hope willingness the go macro the how as around full. sheet slide in follow-up,

Joe Massaro

pipeline The not the strategy remains full, alright. has changed,

for So some fall smaller, Bolton business, technology certainly but mentor] lot think there’s we’re type in to type transactions. opportunities across tend some to tag] [control the SPS, sort these accretive be also the be of entire A I to would and [mobi tend looking look those of at but may transactions, of deals.

very of in envision before, capital we’ve we not a deal. nuTonomy said term. would something those. As the obviously be to deployed accretive acquisition a expect don’t That for strategic We lot type doing near we was where not that’s another

coming thoughtful allocation at So you’re much more a same more from M&A macro being impact the that mentioned I then capital valuations, environment focused I on Got accretive the of going opportunistic. the time both, a of think the diligence to prepared we’re opportunities, thoughtful be be a as in bolt-ons. and my you And not point certainly but but activity. and be types comments, to level little standpoint got little I more focused have overall this around at those obviously on in, seen

Winchester, do we that you us quarter in buyback. work share As is it where share of relates and the to also QX to a acquisition $XXX but million the QX. with really the did saw cash buyback put

view that our and focused on we balanced both. remain is So

Operator

from Your comes (inaudible). line next question of the

open. is line Your

Unidentified Analyst

the division call have basis the to it, given missed qualitatively outlook points. you even but XX may by let’s down it I and have the margin XX

both about in equal think we decline divisions?\ So an

Joe Massaro

Tariffs are to my I bit the little prepared a as in SPS comments. in as weighted I SBS mentioned more mentioned

XX of million about round the would XX So SPS. the hit

Unidentified Company Participant

QX add, QX will of wins in FX would I of the impact volume which in for XX And [SMTS] QX. and just margin commodity us China head to their hit also decline QX Chris. Most sees the then for impact million rate addition in of OI Chris free that

Unidentified Analyst

your detrimental leads in we talked competitors Should a there. makes to different about which one content, with region be higher electrical margins has the sort electrical that’s way about higher or on the Europe question; could in sense. in on potentially similar contracts second in think while Europe of legacy your That margins architecture weak by of harsher sort regional for exposure and of

to think rate where mentioned is about bad, rate also better change You change we’d the its could second incremental obviously see be think may we also that in be, get well. the of better something as China Europe but half as of the

Kevin Clark

with above. all doing being Europe a we’re really Europe for least actually a across corporate of business North the us On – corporate relative average a cost at doing basis I’d North being of Chris bit and a this that And bit higher. ties in relatively below business us regions is America bit and balanced Kevin. say of America for to in cost is AsiaPac

lower than we have have Asia than we in Europe tend across So or Pacific our margins would North portfolio to America.

Unidentified Analyst

dialing it two buy been big the It’s the on how more Could you one in the last just of to you takes cycle? the about billion and historically, number pace you’ve of been late top X talk have do you’ve range five just a couple years acquisition XXX, number, rate. And because gave a current years the obviously the the in you sort to if to I XXX doing the sneak XXX on little go and the I heavier back side. bit and doing of over back chance in, can authorization just know the at to to back a the the the didn’t you’re of but on buyback about obviously sort acquisition balancing

Joe Massaro

I our read last a billion. authorization capital big higher at authorization a X.XX in allocation The was wouldn’t shift that is prior strategy. in to than which

actively QX, we’re on as very but be to mention fairly was I of like balanced, kind most tried manage to that to said remain is going it opportunistic, things aware, going we be. they we when we more. We’re we’re

So QX now as for while could but is again [prefer] acquisition, to you in used a at we location cash good got December. this example, looked you as to market XXX the almost million Winchester of particularly –

and that go. way I to continue that time – as was it be be we opportunistic did, to that we manage we’ll was would a good and think view Our

Kevin Clark

that. half about breakeven do a to level And we to buying flexibility business model, points, lowered back macro And us and to Joe stock. with to generate went we lens and have into really about allows every the have its some programs cash announce our autonomous $X we that a we flow. already really huge think a lot on. certainly we as which well value we great at billion since the us our which if our cash own we a both time to right, We how in although make And puts we of compared we we public structure. Internally on for we Chris, maybe of spend I environment breakeven, and right, across talk XX work how so strategic, we tough cost this we’ve by translates team And flow. position M&A how do tough can sure talked when And as into value attractive, But optionality, don’t much with them driving, sexy for opportunities, return the structure. resiliency cost that year us done year, look focused options. management it find we does more tremendous enterprise, not people about in optimize we on that, through drive we our to going move look we’re macros day as that in at, hard much restructuring and free there’s preserve evaluate to

Operator

next comes Kwas Your with open. line line Securities. of Rick question from is your Wells Fargo Rick the

Rick Kwas

do Kevin see on out? over cadence wins with announcements the see the win additional body or the couple from chassis how last and years, out of coming how playing the you report control, do next you quarter

Kevin Clark

up. say to But I obviously would expect I it. ramp bookings it, to significantly and going the Listen lumpiness the inside bookings, there’s would to activity is continue

with it I fourth the a only us gets not think and validates the our third things great I is win. one domain of (inaudible) think is compute centralization. that for or It’s new actually with it central [BW],

establish problems, - have validates that well architecture that able strategic complex the been you’re shows vis-à-vis we’ve in highly on (inaudible) as capabilities software. when relationship and its the tactical in dealing the it as view build I So in of before Joe reflects it that our to you with and kind with based our vehicle mentioned

Rick Kwas

towards or that OEs Europe how OEs or Is --? Chinese weighted

Kevin Clark

more tend the the it more active European given towards European to looking with at be and to great centralize, ability safety that technical tends OEs, higher PSA they weighted is performance, on Today weighted even the to the technology to OEs, to high, with wins players a reality the and and like we but costs. take more solutions side, have to take be cost example, lower are great out seeing math, improve IPSA for we’re is

So our it you’re to to OEs and accelerate. going European general see who’s view both is going across

Rick Kwas

case tariffs but for I you’re two already already leakage on together for had launch then think Joe, And ’XX think the I I get activities last we go know of embarking some think for for impact separately, ’XX? costs gets ended, incremental are then was don’t is included in on ’XX. away operating tariffs the know, around away. some how I I what’s and completely just million don’t completed? Does And [Kumbaya] this, was it best there inefficiencies, or but we scenario XX that go net on update assumption the or this

Joe Massaro

entered. quarter so structure. about and So way the thought is this let of about and we inefficiencies we at the what me year, adjust QX a and bit had talking ended last we’re the planning the we of it where in we fourth cost XX more The a horizon We in. we start, started little about that’s with plan for where came to right XX in about end

cost we talked China the about in point, this longer will at if say you guide cost I’d action. so term So dealt we’ve through inefficiencies coming out, with

changes quicker inefficiencies was more pop you to have when time that of volume discrete – up really and period tend those are So in rich.

discussion customers. and ’XX they’re are the plans longer in they there sort term for the So less with have of we being now and dealt that of a from

of away. one as As reason of to they’re sort it that’s not tariffs the behaving we’re going relates if

of If but some We we’d incurring we’re of ahead to can move little were just of given to if business sure year and away the want We’re them, to some have incurring to starting if a incremental some it deal be costs, get cost them. But point bit in go those do away, have go not related so question small of don’t that’s CapEx you we they trying tariffs, with externally. are tomorrow, way we’re in reason that to obviously we is to whatever that move to away, I cost should investment go tomorrow, of as one XX so plans, to to were to there that. we’re they remaining go whatever away your so we’re in their the the in, frame anybody sort sure. that going things, of portion the obviously

Rick Kwas

that So on a away. pro basis rata goes

leakage So included. around that’s cost there’s already and no stuff,

Joe Massaro

we’ll right, on so what through we’re work course know, of like. And that be from that we included, over XX based [developing]. everything quarters couple this we’ll is max, but we’re remediation the Yeah, point better at not and the its there. money But looks of the next spending actual

Operator

the from open. Ryan next Ryan comes JP Your your from line is line Morgan. of Brinkman question

Ryan Brinkman

such tier some the more your One likely and content own, industry would delays? even lines. assumptions that have are existing anything of competitors in vehicles stories pressuring curious the delayed cast perhaps strong in better. term introducing, would active you is Are favorable long part to launch unchanged safety you conservative I are per your automakers more think negatively the And ask to XXXX I might or with vehicle has I just similar have be new the to in that it the if to what revenue of XXXX, your commented new active regard revenue top backlog guidance as programs. save you because given impact the industry perhaps vehicles money seeing think even environment outlook launch this

Kevin Clark

region. delays, No haven’t we seen in delays. no any shifting, Ryan no any cancelation, program really

America its SUV volumes. sorts of of and North closely us Significant car seen follow in you been or truck they’ve cancellations passenger over whether or cross programs. and But we we’ve sedan and volumes, know, other future tended to vehicle Now as they’ve seen delays those we’ve volume platforms with as out not be in reduction mean replaced you and I do. in

Ryan Brinkman

some you you’re discussion seeing four lastly for or what’s coming latest maybe little seeing level plus bit the five or of interest out comes in it terms that Aptiv? being me, from the automaker trend the sooner but seeing level that at was the and And I of the level are expected. about later, was how then you’re than a for two autonomous should anything features? there to some net latest in when time plants or same Is think two

Joe Massaro

seeing a definitely plus, pull-forward level level or we’re two minus, three investment Well three.

The really OEs would the four, I programs what amount five of or two a our we or with year higher than working your say am really on our seen expected we’re a it’s we’ve ago. level So, say delay. level business have opportunity here and I programs, that sure quoting, not would I’d

years. I would next tell that think active is ourselves solving as the there safety it’s over to their But general are I well be like tough platforms significant. out couple on other problem a of working a and people solve, tough in players few problems those as will you a launching the

seen a the bookings, active in given rate, safety. increase significant activity we’ve growth our around Given of in amount and

Ryan Brinkman

or And obviously just of it as a to to auto comes four follow-up level who level lot supply do five, it that, have the base when all. a the makers

that move the Is vertically things from will some doing the impact, think entreated. makers commercialization or companies that utilizing line drive testing the do you development been of have more comes in-house pretty of to etcetera. our when that off up a lot like base end have When been auto policies Some of testing? they it to supply

Joe Massaro

systems. for software some and software perception Yeah, of integration the of certainly some I think and for the

the partners, I an the across they architecture, themselves virtually its whatever case So that AD we’re you doing believe perception work its all I program OE every whether would out has internally or product them doing some be. providing and there with with whether whether tell might system, are today

ourselves. whether not for like opportunity doing we’re players software So there still is or a tremendous the full stack,

Operator

Your comes the next line of from question (inaudible).

open. is line Your

Unidentified Analyst

Difficulty] [Technical

Elena Rosman

time we think have I more for one question.

Operator

from last John Bank open. John of is question line from Murphy comes of line the your Your America.

John Murphy

and China, getting and on China, question follow-up you one obviously kind its volumes But when had this. your lower to actions. taking were you I Kevin you’re about on X page something parse like for the talking hate just word word for I Well ready of mentioned about structurally

the growth sort about not actions there. similar is that sort it of the from we’re we’re scare I in expands so that ’XX strong though you’re of of hearing does any other that your saw growth or all though of thinking any as bump we think in you tethered about you’re growth on and in might above you’re maybe is, curious standpoint to right now. absolute then just whips as growth even just the here a on the that see node saw And you of growth coming sort kind maybe Just there. workforce yet, slower absolute stuff to think stands China, terms lower for if that, scare kind even Is story about the not and this macro rate that side there content concern growth you concerned XX% up cyclical volume we in a market taking this

Kevin Clark

growth unit China, we we’re full on and think of and volume. listen our weak seen for do down Yes, is, year the number you our if XXXX for outlook what is a production see basically outlook, million we’ve three is right. I It the quarters affectively straight on math, unit schedules that XX our saying based

over sit user been. active Europe that’s be you’d Now in be technology continue a given vehicle America strong. perspective huge is like Those market. that’s If standpoint, market, North would are we historically experience safety, – when we have growth given to put that, said things that outlook extremely growth possibly with but And where accelerate demand a million growth you our believe tempered and just for will infotainment, and XX what more Having massive its the that market. of a from electrification. units, that our

over a to will and extremely pure level, although revenue strong. growth production lower continue growth market So growth be revenue just -

growth we you’re So historically in China. we’re positive seen what where last to had we’re lower China, XX the We see going about than sit years. we think positive over about

Joe Massaro

China, line of it a lines, Just to China as three a product all add to context, little to those three where basis. as product in us start growth through for go triple next those we relates digit on

over taste revenue a So, going like it’s well be to our growth. XXX%

a small, but of there’s business. been that they’ve trimming to growth So lot

John Murphy

The going force of tempted, some two. those but kind force, growth balance to to meaning those are work folks hired the sort trying expect after and are are are, rebalancing between and be a we you work seeing actions other areas, of still in the other can understand you you’re

Joe Massaro

a is the standpoint growing. are Yes, The balance. growth revenue from and balances that’s region that’s a which

us view I any strongly, the whipsawing there. doing the an quite belt, opportunity think we tighten think this market don’t I rebounds to regardless you’d of as see and real frankly whether

I lower think a operating you’re off overhead face. just of

John Murphy

and a be could to seems SVA, might last talking like like one dozen be about there or or other interested be to those in that bike just they on [Radian] selling automakers, our the it? be said of and you’re you’ve And out traditional like really a would something outside that a been you its companies

Kevin Clark

yes, all as outside a of all aware Those discussions we ongoing them. be with would dialog (inaudible) that and are had number but front, arrive of doesn’t them well

Elena Rosman

Kevin, want you to (inaudible).

Kevin Clark

outlook as an taking for for your as on you well we and the very you as appreciate thank We everyone, XXXX. get certainly update time our time to fourth listen appreciate earnings our investors. much So quarter

you. thank So

Operator

This conference concludes call. today’s

You may now disconnect.

Aptiv (APTV) 31 Jan 192018 Q4 Earnings call transcript