Delphi beefs up portfolio in connected, automated cars

(Recasts with acquisitions in connected and self-driving cars)

By Paul Lienert

DETROIT, July 30 (Reuters) - Auto parts supplier Delphi Automotive Plc announced several key transactions on Thursday that will beef up its expertise and capability in the fast-growing fields of connected cars and automated driving.

Delphi acquired Ottomatika, a Pittsburgh-based spinout from Carnegie Mellon University that makes software that controls automated driving systems, and invested in Quanergy Systems, a Silicon Valley maker of low-cost, solid-state laser imaging systems that are an integral component in self-driving cars. The company also reported that second-quarter profit from continuing operations and revenue fell.

Connected cars and their drivers can communicate, send and receive information, listen to entertainment, send emergency messages and receive diagnostic information from a dealer or manufacturer.

Earlier in the day, Delphi said it acquired British cable equipment maker HellermannTyton Group Plc (LSE: HTY.L - news) for about $1.7 billion to boost its presence in the connected-car market.

The moves help bolster Delphi's growing portfolio of software and hardware businesses in active safety and connectivity, according to Chief Technology Officer Jeff Owens.

"We have ample capacity to do more transactions" in related technologies, added Kevin Clark, Delphi president and chief executive officer.

Delphi said second-quarter net income rose but revenue fell as a stronger dollar and a weaker euro hurt overseas results.

Delphi earned $667 million on sales of $3.86 billion in the second quarter. Net income included an after-tax gain of $285 million on the sale of its Thermal Systems business to German supplier Mahle. A year earlier, it posted net income of $406 million.

Net income from continuing operations dipped to $350 million, or $1.21 per share, from $360 million, or $1.19, in the prior year.

Revenue fell 5 percent from $4.06 billion a year ago, due largely to unfavorable currency exchange rates, the company said.

Delphi said it had sales growth in the quarter of 8 percent in Asia, 5 percent in North America and 4 percent in Europe, partly offset by a 15 percent decline in South America, after adjusting for currency fluctuations.

The company trimmed its outlook for full-year revenue, now expecting $15.2 billion to $15.6 billion, reflecting growth of 6 percent to 8 percent.

Delphi repurchased 3.65 million shares for about $313 million during the quarter.

Delphi shares were down 0.7 percent to $77.88. (Editing by Jeffrey Benkoe)