Company: APTV
Filing Date: 2025-02-07
Form Type: 10-K
Source: 0001521332-25-000010
Chunk: 87

Company: Aptiv PLC
Filing Date: 2025-02-07
Form: 10-K
Item: Item 7
Chunk 87
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 a worldwide semiconductor supply shortage. This shortage has resulted in increased pricing pressures on semiconductors as well. Although the severity of these disruptions abated during the second half of 2023, we expect semiconductor supply cost and commodity cost volatility to have a continual impact on future earnings and/or operating cash flows. As such, we continually seek to mitigate both inflationary pressures and our material-related cost exposures using a number of approaches, including combining purchase requirements with customers and/or other suppliers, using alternate suppliers or product designs, negotiating cost reductions and/or commodity cost contract escalation clauses into our vehicle manufacturer supply contracts and hedging. We have also negotiated, and will continue to negotiate, price increases with our customers in response to the aforementioned increased overall inflation and global supply chain disruptions.

This section discusses our consolidated results of operations and results of operations by segment for the years ended December 31, 2024 versus 2023. A detailed discussion of our consolidated results of operations and results of operations by segment for the years ended December 31, 2023 versus 2022 can be found under Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 6, 2024.

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2024 versus 2023

The results of operations for the years ended December 31, 2024 and 2023 were as follows:

 Year Ended December 31, 2024 2023 Favorable/(unfavorable) (dollars in millions)Net sales$19,713 $20,051 $(338)Cost of sales16,002 16,612 610 Gross margin3,711 18.8%3,439 17.2%272 Selling, general and administrative1,465 1,436 (29)Amortization211 233 22 Restructuring193 211 18 Operating income1,842 1,559 283 Interest expense(337)(285)(52)Other income, net41 63 (22)Net gain on equity method transactions605 — 605 Income before income taxes and equity loss2,151 1,337 814 Income tax (expense) benefit(223)1,928 (2,151)Income before equity loss1,928 3,265 (1,337)Equ