Shares of Delphi shed more than five percent in extended trading late Tuesday after the company reduced its earnings outlook for the third quarter, citing higher raw material prices and increased production costs.
CBS Marketwatch said that Delphi’s stock closed down 5 cents at $9.31 before slipping to $8.80 in evening action.
The company said it expects to report a net loss between $113 million to $120 million, wider than its previous loss targets of $10 million to $40 million.
Delphi said it expects to take after-tax, restructuring charges of about $25 million. Revenue for the quarter is pegged to be $6.65 billion.
For the fourth quarter, Delphi forecast a loss of $18 million to earnings of $32 million, on a revenue range of $7 billion to $7.2 billion.
“In light of the current challenges, Delphi is moving aggressively to address this difficult environment, particularly in the U.S.,” said CEO J.T. Battenberg III. “We are also executing on our long term value drivers, growing our non-GM business, reducing our legacy cost structure and generating strong cash flow.”
The company said it plans to limit hiring and reduce headcount through attrition to cut costs. In the past year, Delphi slashed its headcount by about 5,500.
