Delphi posts $1.85 billion June operating loss

By Caroline Salls

Pittsburgh, July 31 - Delphi Corp. reported a $1.85 billion operating loss for June on $1.63 billion in net sales, according to its monthly operating report filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.

The net loss for the month was $1.86 billion.

According to the filing, the company recorded $180 million in post-employment wage and benefit charges for the month in connection with its employee buyout program, as well as $392 million year-to-date for the pre-retirement and buyout portions of the program.

In addition, the company recorded a net pension and post-employment benefit curtailment charge of $1.56 billion for the month, primarily as a result of reductions in expected future service as a result of the retirements.

General Motors Corp. has agreed to pay the $35,000 per employee lump sum incentive payment under the buyout program, as well as half of the buyout payments, ranging from $40,000 to $140,000 per employee.

Cash and cash equivalents on June 30 were $850 million.

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8, 2005. Its Chapter 11 case number is 05-44481.

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