Aptiv PLC Reports 2% Drop in Net Sales

By Tamara Parker • Saturday, February 08 06:02 • Permanent Link

Aptiv PLC has recently released its 10-K report, detailing its operations in the design, manufacture, and sale of vehicle components across various regions. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets, operating through two segments, Signal and Power Solutions, and Advanced Safety and User Experience.

In the report, Aptiv PLC reported net sales of $19,713 million for the year ended December 31, 2024, a decrease of 2% compared to 2023. The decrease in sales was attributed to a 2% decrease in volumes, reflecting decreased global automotive production of 1%, primarily in Europe and North America. This decline was partially offset by the impacts of favorable pricing, net of contractual price reductions, of $167 million.

Cost of sales decreased by $610 million for the year ended December 31, 2024 compared to 2023, primarily due to improved operational performance, decreased volumes, and currency exchange impacts. The company's gross margin percentage increased to 18.8% in 2024 from 17.2% in 2023.

Selling, general and administrative expenses remained consistent as a percentage of net sales for the year ended December 31, 2024, compared to 2023. Amortization expenses decreased by $22 million, reflecting the continued amortization of definite-lived intangible assets resulting primarily from acquisitions.

Aptiv PLC recorded employee-related and other restructuring charges totaling approximately $193 million during the year ended December 31, 2024, reflecting programs to align manufacturing capacity with the current levels of automotive production in each region. The company also incurred interest expenses of $337 million, primarily due to various debt-related transactions.

The report also highlights a net gain on equity method transactions of $605 million, primarily resulting from the Motional funding and ownership restructuring transactions completed in May 2024. Additionally, the company reported an income tax expense of $223 million for the year ended December 31, 2024, with an effective tax rate of 10%.

Following these announcements, the company's shares moved 1.0%, and are now trading at a price of $64.1. For more information, read the company's full 10-K submission here.

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