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Delphi drives by Street
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July 19, 1999: 3:47 p.m. ET
Largest auto parts maker beats forecasts by a penny, denies Toyota bid
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NEW YORK (CNNfn) - Strong revenue growth and sales of under-performing assets helped Delphi Automotive Systems Corp., the world's largest auto parts maker, pull ahead of Wall Street's per-share earnings expectations Monday by a penny.
Separately, Troy, Mich.-based Delphi (DPH) played down reports that it had offered up to 20 percent of the company to Toyota Motor Corp.
Delphi posted second-quarter earnings of $394 million, or 69 cents per diluted share. Analysts polled by First Call Corp. had expected the company to earn 68 cents in the quarter.
Delphi, reporting its first quarterly earnings after gaining its full independence from General Motors Corp. (GM) in May, posted strike-impaired results of $101 million, or 18 cents per share, in the year-ago period.
Revenue rose 17 percent over the1998 strike-impacted levels, from $6.6 billion to $7.7 billion after adjusting for divested businesses. Revenue from non-GM customers rose 11.4 percent to $1.69 billion.
Delphi cut its final ties to GM May 28 when GM distributed its remaining 80.1 percent stake in Delphi to shareholders in a spin-off valued at $9.3 billion.
That followed the $1.7 billion initial public offering of 17.7 percent of Delphi in February. The spin-off ended a 90-year affiliation with the world's No. 1 automaker and made Delphi the 36th-largest publicly traded U.S. company.
In a conference call with reporters, Delphi Chief Financial Officer Alan Dawes played down press reports that the supplier offered up to 20 percent of the company to Toyota Motor Corp.
"I'm not aware of, and I don't believe we approached Toyota to purchase a stake in us," Dawes said.
Japanese reports said Toyota turned down the offer and a Toyota spokesman confirmed the news.
"Toyota received an offer from Delphi Automotive and has decided not to proceed with any further discussions," a Toyota spokesman told Reuters.
Shares of Delphi rose 1/8 to 19-9/16 in recent trading. 
-- from staff and wire reports.
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