Company: APTV
Filing Date: 2025-02-07
Form Type: 10-K
Source: 0001521332-25-000010
Chunk: 88

Company: Aptiv PLC
Filing Date: 2025-02-07
Form: 10-K
Item: Item 7
Chunk 88
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ity loss, net of tax(118)(299)181 Net income1,810 2,966 (1,156)Net income attributable to noncontrolling interest24 28 (4)Net loss attributable to redeemable noncontrolling interest(1)— (1)Net income attributable to Aptiv1,787 2,938 (1,151)Mandatory convertible preferred share dividends— (29)29 Net income attributable to ordinary shareholders$1,787 $2,909 $(1,122)

Total Net Sales

Below is a summary of our total net sales for the years ended December 31, 2024 versus 2023.

 Year Ended December 31,Variance Due To: 20242023Favorable/(unfavorable)Volume, net ofcontractualpricereductionsFXCommoditypass-throughOtherTotal (in millions)(in millions)Total net sales$19,713 $20,051 $(338)$(331)$(85)$78 $— $(338)

Total net sales for the year ended December 31, 2024 decreased 2% compared to the year ended December 31, 2023. Our volumes decreased 2% for the period, which reflects decreased global automotive production of 1% (3% on an AWM basis), primarily in Europe and North America. The declines in volumes were partially offset by the impacts of favorable pricing, net of contractual price reductions, of $167 million. In addition, our net sales reflect net unfavorable foreign currency impacts, primarily related to the Chinese Yuan Renminbi. 

Cost of Sales

Cost of sales is primarily comprised of material, labor, manufacturing overhead, freight, fluctuations in foreign currency exchange rates, product engineering, design and development expenses, depreciation, warranty costs and other operating expenses. Gross margin is revenue less cost of sales and gross margin percentage is gross margin as a percentage of net sales.

Cost of sales decreased $610 million for the year ended December 31, 2024 compared to the year ended December 31, 2023, as summarized below. The Company’s material cost of sales was approximately 50% and 55% of net sales for the years ended December 31, 2024 and 2023, respectively.

43

 Year Ended December 31,Variance Due To: 20242023Favorable/(unfavorable)Volume (a)FXOperationalperformanceOtherTotal (d