Delphi Corporation on Wednesday reported a loss of US$788 million in the third quarter, up substantially from the $119 million lost a year ago.
The Associated Press (AP) said the loss amounted to $1.40 per share, compared to a loss of 21 cents in the third quarter of 2004.
Quarterly revenues were $6.28 billion, down from $6.64 billion the year before. Delphi, which was spun off from General Motors Corp. in 1999, reportedly said its non-GM revenues rose 6% to $3.33 billion.
The Associated Press said the components company, currently in Chapter 11 bankruptcy protection, blamed some of the loss on accrued contract costs for idled employees who had previously been expected to return to work at Delphi or GM plants – those costs totaled $136 million while Delphi said an additional $85 million was incurred for idled employees in the third quarter.
“The sizable loss in this quarter only underscores the urgent need to address our US labor cost issues,” Delphi Chairman and CEO Robert S. “Steve” Miller said, according to the report.
Miller said Delphi can’t continue to operate its U.S. plants without significant changes to its labour contracts, The Associated Press added.