Delphi on Monday reported a $US1.86bn net loss for June, largely due to a charge for a pension and post employment benefit curtailment.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
According to Reuters, the components maker, which plans to cut thousands of US hourly-paid union workers through early retirements and buyout programmes, booked a $1.56bn charge due to reductions in anticipated future service because of retirements and $180m for special attrition agreements with its two largest unions. It also said it expects to incur additional pension and post-employment benefit curtailment charges as more workers opt for the retirement programmes.
Delphi posted net sales of $1.63bn in June, including $960m to former parent General Motors and $618m for other customers, the report added.
Reuters noted that about 12,500 Delphi hourly workers who are members of the United Auto Workers union agreed to retire or take early retirement under an initial deal with the UAW and GM – more could retire or take buyouts under a second programme open until mid September.
A second set of agreements with the International Union of Electrical Workers-Communications Workers of America could allow up to 3,200 to retire or enter a pre-retirement programme, and the rest of its workers could take buyouts.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataBy the end of June, about 385 IUE-CWA workers had opted for the programme, open until 9 August, Delphi said, according to Reuters.
