Delphi Corp has reported a net loss of $US338 million or $0.60 per share, for Q2, 2005 compared to net income of $143 million or $0.25 per share a year ago.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The result includes $49 million in restructuring-related charges.
Revenues were $7.0 billion (compared to $7.5 billion a year ago) and non-GM revenues, up 6%, accounted for $3.6 billion, or 51% of the total.
“Despite significant US financial challenges, we continue to experience growth and profitability in our international operations,” said Delphi chairman and CEO Robert Miller in a statement.
“While we are pleased with our regional performance, it is apparent that we must immediately address the US legacy issues. We are engaging our major unions in discussions to seek modifications required to implement our restructuring plan, as well as with GM to seek related financial support.”
“As we announced on August 5, we drew $1.5 billion under our revolving credit facility to make additional cash readily available to finance our operations to the extent required during our restructuring discussions with our unions and GM.
“If these discussions do not lead to the implementation of a plan that addresses our existing legacy liabilities and the resulting high cost of US operations, we will consider other strategic alternatives, including chapter 11 reorganisation for our US businesses, to preserve the value of the company and complete our transformation plan.”
Capital expenditures were $319 million, including approximately $101 million paid to purchase certain previously leased facilities.
Acting CFO John Sheehan said Delphi expects continued lower North American production levels in Q3 2005 and revenue ranging between $6.1 billion and $6.3 billion, with lower margins than in the first half of the year, due to the high US legacy fixed-cost structure.
