Aptiv PLC reported a decline in net sales for the third quarter and the first nine months of 2024, with revenues of $4,854 million for Q3 2024, down 5% from $5,114 million in Q3 2023. For the nine months ended September 30, 2024, net sales totaled $14,806 million, a decrease of 2% compared to $15,132 million in the same period of 2023. The decline in sales was attributed to a 7% decrease in volume, reflecting a broader downturn in global automotive production, which fell by 5% in Q3 2024 and 2% for the nine-month period.
Despite the revenue drop, Aptiv's operating income improved, reaching $503 million in Q3 2024, an increase from $446 million in Q3 2023. For the nine months ended September 30, 2024, operating income was $1,363 million, up from $1,204 million in the prior year. The gross margin for Q3 2024 was $903 million, representing an 18.6% margin, compared to 17.5% in Q3 2023. The company attributed the improved operating income to better operational performance and cost management, despite facing inflationary pressures and increased costs.
Net income for Q3 2024 was $368 million, a significant decrease from $1,637 million in Q3 2023, primarily due to a substantial tax benefit recorded in the previous year. For the nine months ended September 30, 2024, net income was $1,535 million, down from $2,047 million in the same period of 2023. The basic net income per share for Q3 2024 was $1.48, compared to $5.76 in Q3 2023.
Aptiv's restructuring efforts continued, with charges of approximately $16 million in Q3 2024 and $125 million for the nine months, aimed at optimizing its manufacturing footprint and reducing overhead costs. The company also completed the sale of its 51% owned Russian subsidiary in May 2023 and acquired Höhle Ltd. for $42 million in April 2023.
In terms of financial position, Aptiv reported cash and cash equivalents of $1,054 million as of September 30, 2024, down from $1,640 million at the end of 2023. Total debt increased to $9,540 million, up from $6,213 million at the end of 2023, reflecting new borrowings to fund share repurchases and other activities. The company initiated a $5 billion share repurchase program in July 2024, with $3 billion executed through accelerated share repurchase agreements in August 2024.
Overall, Aptiv's performance in 2024 reflects challenges in the automotive sector, including supply chain disruptions and economic volatility, while the company continues to focus on strategic investments and restructuring to enhance profitability.
About Aptiv PLC
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