What factors influenced APTV's 2024 earnings trend?

Aptiv PLC (APTV) experienced a decline in net income and EPS growth in 2024, influenced by several key factors:

1. **Revenue Decline**: Aptiv's revenue decreased by 1.7% year-over-year, with the fourth quarter showing a 2% decrease. This decline was due to weaker production schedules, particularly affecting the electrical distribution product line, and a slowdown in electric vehicle (EV) production.
2. **Production Schedules and Supply Chain Disruptions**: Weaker production schedules and supply chain disruptions led to a 6% revenue decline in the third quarter compared to the previous year. A large customer reduced production by 35% in the third quarter, impacting revenue.
3. **Electrical Distribution Systems**: The Electrical Distribution Systems business faced significant challenges, with revenues declining by 12% due to customer schedule reductions. This segment's spin-off is expected to create two independent companies, which may enhance focus on core areas and drive additional value for stakeholders.
4. **New Business Bookings**: Although Aptiv booked $3.6 billion of new business awards in Q3, totaling just under $21 billion year-to-date, this was not enough to offset the revenue decline from existing customers. New business bookings were impacted by delays in customer program awards, leading to a revised 2024 bookings target of $30 billion.
5. **Geopolitical Factors**: Currency exchange and commodity movements negatively impacted revenue, particularly in the signal and power solutions segment, which saw revenues decline by 8%. This was partly offset by strong performance in the advanced safety and user experience segment, which achieved record earnings and margin.

In summary, Aptiv's 2024 earnings trend was influenced by a combination of revenue declines due to production schedules, supply chain disruptions, and geopolitical factors, along with strategic initiatives like the planned spin-off of its Electrical Distribution Systems business.