Delphi Corporation said on Thursday that second-quarter earnings fell 60% from a year ago due to weak production at General Motors and other vehicle makers, Reuters reported.
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According to the report, Delphi said it expected full-year earnings in line with analyst expectations, but at the low end of the company’s original projections of $US375 million to $475 million, and break-even results for the third quarter.
Reuters said the Troy, Michigan-based company earned $88 million, or 16 cents per share, down from $220 million, or 39 cents per share in the same period a year earlier. Analysts’ average earnings estimate was 16 cents a share, according to Reuters Research.
The Reuters report said Delphi was hurt when GM, its largest customer, suspended production of some sport utility vehicles after a May tornado severely damaged an assembly plant in Oklahoma. GM’s North American production fell 11% in the second quarter, and GM has forecast a 6% decline for the third quarter, Reuters added.
Reuters noted that, in addition, Delphi moved up previously announced plans to close its Moraine, Ohio, operations, saying that the closure and other restructuring items in the second quarter reduced earnings by $23 million.
