Delphi Corporation on Friday reported year-over-year fourth quarter and calendar year 2002 profit increases of 88% and 108% respectively, though the full year figure excludes the impact of restructuring and other charges taken in Q1 2002. On a GAAP basis, net income was $343 million in CY 2002 compared with a $370 million loss in CY 2001.
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Delphi achieved revenues of $6.97 billion in Q4 2002, with net earnings totalling $120 million or $0.21 per share, just above the Thomson First Call analysts’ consensus of $0.20. For calendar year 2002, revenues reached $27.43 billion, yielding earnings of $517 million, excluding the Q1 restructuring costs.
Fourth quarter 2002 financial highlights included: revenue of $6.97 billion (up 9.3% from $6.38 billion in Q4 2001); non-GM revenue at 36% of total revenue for the quarter at $2.49 billion (up 19.4% from $2.08 billion in Q4 2001); GM North America content per vehicle remained steady from Q3 2002 at $2,729 and net income of $120 million or $0.21 earnings per share (up 88% from $64 million in Q4 2001). For Q4 2001, the GAAP loss was $131 million, or $0.23 per share.
Calendar year 2002 financial highlights included: revenue of $27.43 billion (up 5.1% from $26.09 billion in CY 2001); non-GM revenue at 35% of total revenue for the year at $9.57 billion (up 13% from $8.46 billion in 2001); GM revenue of $17.9 billion, up from $17.6 billion in CY 2001 and net income of $517 million up 108% from $248 million in CY 2001).
“For the full year, we benefited from stable production in major automotive markets, steady growth of the company’s non-GM business and savings related to ongoing restructuring and cost containment,” said Delphi chairman, CEO and president J.T. Battenberg III.
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By GlobalData“Delphi’s non-GM business accounted for 36% of our revenue in the fourth quarter, and grew 13% year-over-year to 35% of sales for 2002 as a whole,” Battenberg added.
Delphi said strong cash flow allowed it to contribute 2002 year-end excess cash of $350 million to its pension funds in January 2003. The company previously planned to contribute $600 million to its pension funds in mid-2003 but, reflecting strong Q4 2002 cash flow, pulled ahead $350 million of contributions.
Separately, due to continued declines in the value of securities contained in Delphi’s US pension plans and a 50 basis point change in its discount rate to 6.75%, the company reported a $4.1 billion under-funded US pension liability as of December 31, 2002.
Delphi on Friday followed car makers GM and Daimler Chrysler by announcing profit-sharing, in this case approximately $240 to eligible hourly employees, and incentive compensation awards to eligible salaried employees, payable during the first quarter of 2003.
Q1 2003 revenue is expected to range between $6.9 billion and $7.0 billion in the first quarter while net income is expected to be $120-130 million.
