TROY, Mich. (AP) -- Delphi Automotive PLC said Tuesday that its second-quarter net income rose 11 percent due to lower costs, even as revenue declined.
Delphi's revenue is dropping, in part because of changes in the value of foreign currencies, but profit still beat Wall Street predictions. Delphi raised its earnings guidance for the year, although it cut its revenue outlook.
The company said that even with the challenging global economy, it's confident of its ability to increase profit.
For the April-June period, Delphi earned $330 million, or $1.01 per share, up from $298 million, or 88 cents per share, in the same quarter last year. Analysts, on average, expected a profit of 93 cents per share, according to a FactSet poll.
Revenue fell 5 percent to $4 billion from $4.21 billion, when analysts expected $4.16 billion. Delphi blamed the decline on the dollar's gains against the euro and Brazil's real. Delphi, like other companies that do significant business outside the U.S., can suffer from a rising dollar because income earned in foreign currencies shrinks when it's translated back into the stronger U.S. dollar.
Meanwhile, total operating expenses fell 7 percent to $3.53 billion.
Delphi, based in Troy, Mich., spun off from General Motors in 1999, went into bankruptcy protection in 2005 and emerged four years later after cutting thousands of jobs and selling factories and businesses. It went public in late 2011.
Delphi posted an outlook for the current quarter that was significantly lower than analysts' predictions, citing the negative effect of the rising dollar and changes in auto manufacturers' production schedules. The company expects profit of 65 cents to 80 cents per share, when Wall Street predicts 85 cents. For revenue, the company expects $3.65 billion to $3.75 billion while analysts forecast $4.01 billion.
It cut its full-year revenue prediction to a range of $15.6 billion to $15.9 billion from its previous $16.2 billion to $16.5 billion. Analysts expect $16.25 billion.
Still, Delphi raised its profit outlook for the year to $3.68 to $3.91 per share from its previous prediction of $3.63 to $3.85 per share. Analysts expect $3.68 per share.
Delphi shares rose 76 cents, or 2.7 percent, to $28.75 in late morning trading Tuesday.
