By Nathan Gomes
(Reuters) -Aptiv PLC forecast a bigger-than-expected annual adjusted profit on Thursday, banking on resilient demand for its auto parts despite U.S. tariffs and higher costs.
U.S.-listed shares of the Dublin, Ireland-based company rose 1.5% in early trading.
Strong demand from automakers for advanced driver-assistance features and infotainment systems has helped companies like Aptiv.
But U.S. President Donald Trump’s tariffs have hit the import-heavy automotive industry. Global demand for electric vehicles has also slowed down, forcing Aptiv to cut costs last year.
Aptiv also said vehicle production was stronger than expected in the first half of the year, likely reflecting consumers rushing to buy before prices increase.
“We remain in a period of uncertainty driven by evolving trade and regulatory policies, and remain cautious that consumer demand could weaken in the back half of the year,” Aptiv CEO Kevin Clark said in a post-earnings call with analysts.
The company, which sources components globally for its auto parts business, counts major automakers such as the Detroit Three, Volkswagen AG and BMW among its key clients.
Aptiv now expects annual adjusted earnings per share between $7.30 and $7.60, above analysts’ estimates of $7.23, according to data compiled by LSEG.
On an adjusted basis, the company earned $2.12 per share in the quarter through June, compared with estimates of $1.84 per share.
Aptiv’s overall quarterly net sales rose 3% to $5.2 billion from a year ago. Analysts on average expected net sales of $5.09 billion.
(Reporting by Nathan Gomes in Bengaluru; Editing by Sahal Muhammed)
