Restructuring Delphi has reported a reduced net second quarter loss of $US821m or $1.46 a share on flat revenue of $7.0bn. The Q2 2006 net loss was $2.3bn or $4.05 per share.
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Included in the Q2 2007 net loss were charges of $332m related to the Securities and ERISA litigation, employee termination benefit and other exit costs of $301m (including $207m related to the exit of the manufacturing facility in Cadiz, Spain), and long-lived asset impairment charges of $39m.
Included in the Q2 2006 net loss were charges of $1.9bn for the U.S. employee special attrition programmes.
Non-GM revenue for the quarter was $4.1bn, up 5% from $3.9bn in Q2 2006. Non-GM business represented 59% of Q2 revenues, compared to year-ago levels of 56%, primarily due to a 6% year-over-year decline in GM revenues. Excluding the favourable impact of foreign currency exchange, non-GM growth for the second quarter was essentially flat.
The first-half net loss of $1.4bn was also an improvement: the H1 2006 net loss was $2.6bn. Included in the first half 2007 net loss were the $332m charges related to the Securities and ERISA litigation, employee termination benefit and other exit cost charges of $420m (including $268m related to the exit of the manufacturing facility in Cadiz, Spain), and long-lived asset impairment charges of $199m. Included in the first half 2006 net loss were charges of $1.9bn for the US employee special attrition programmes.
H1 revenue of $13.7bn was down slightly from $14.0bn in first half 2006. Non-GM revenue for first half 2007 was $8.0bn, up approximately 4% from $7.7bn in first half 2006. Non-GM business reached 59% of first half 2007 revenues, compared to year-ago levels of 55%. The increase in non-GM revenues was primarily due to the impact of favourable currency exchange rates.
Delphi recently reached new agreements with four unions, having agreed a deal with the key UAW union some months earlier, as it works towards emerging from US bankruptcy protection.
