Delphi Corporation on Tuesday reported a first half 2006 net loss of $2.6bn, including charges of $1.9bn associated with the company’s employee-shedding programme.
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Total revenues were $14.0bn while non-GM revenues grew 9% year-on-year to $7.7bn or 55%.
“In the first half of the year, Delphi achieved an 85% acceptance rate of UAW employees signing up for its special attrition programme,” said Delphi CFO Robert Dellinger.
“The attrition programmes are a step in our transformation; however, we continue to experience losses reflecting an uncompetitive US cost structure.
“[We are] addressing these issues with our stakeholders, including our unions and General Motors, as part of our reorganisation proceedings through the bankruptcy court.”
Second quarter revenue was $7.0bn, the same as in Q2 2005.
Non-GM revenue for the quarter was $3.9bn, up around 9% from $3.6bn in Q2 2005. Non-GM business reached 56% of Q2 revenues, compared to 51% a year ago.
The Q2 net loss of $2.3bn compared to Q2 2005’s net loss of $338m. Special attrition programme charges included a net pension and post-employment benefit curtailment charge of $1.5bn, primarily due to reductions in anticipated future service as a result of the retirements, and $392m of charges related to the pre-retirement and buyout portions of the special attrition programmes.
