Delphi Corp. has posted a $US102 million fourth-quarter net loss because of North American vehicle production cuts and rising costs for raw materials.
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According to Reuters, Delphi, which released preliminary results pending the completion of an internal accounting investigation launched last year, said 2005 has started weakly while commodity costs, the uncertain pace of planned job cuts and other factors would make it hard to provide a specific first-quarter forecast.
The fourth-quarter loss was 18 cents per share, compared with net income of $82 million, or 15 cents a share, a year earlier, the report said, adding that revenue fell 3% to $7 billion in the quarter from a year earlier.
Excluding charges for restructuring and recoverability of some cost structures and tax benefits and reversal of tax allowances, Delphi reported a loss of $51 million, or 9 cents a share. Analysts on average expected a loss of 15 cents a share, according to Reuters Estimates.
Reuters noted that Delphi in December warned of a fourth-quarter loss and full 2005 loss because of vehicle production cuts, rising materials costs, increased pension and health-care costs and difficulties with its own suppliers. Delphi plans to cut 8,500 jobs in 2005, or nearly 5% of its workers, to deal with the pressure, the news agency added.
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By GlobalDataDelphi reportedly said it expects first-quarter revenue of from $6.8 billion to $7 billion, with non-GM revenue likely to exceed 50% of sales. Non-GM sales were 49% of revenue in the fourth quarter and 46% of revenue for 2004.
“The reality is … we are in the middle of this transformation, not at the end, not at the beginning,” Dawes told Reuters. “We are tracking on the things we need to do to complete the transition. We still have a long way to go.”
The results and 2005 first-quarter forecasts exclude any impact from the accounting investigations and may be adjusted when the investigations are completed, Delphi reportedly said. It has not announced a timetable for completing the investigation and the 2005 outlook may not be affected much by it, Dawes told Reuters.
