Delphi third-quarter operating loss improves to $679 million, net loss to $1.2 billion

By Caroline Salls

Pittsburgh, Nov. 6 - Delphi Corp. reported a net loss of $1.2 billion for the third quarter on revenues of $6.2 billion, according to a company news release.

Delphi said the net loss widened from $2 billion for the third quarter of 2006, when the company posted $6 billion in global revenues.

Meanwhile, non-GM revenue for the latest quarter was $3.6 billion, up 5% from $3.4 billion in the same period of 2006, primarily reflecting favorable impact of foreign currency exchange and favorable volume and mix.

Delphi said the third-quarter 2007 net loss included an accrual of $369 million for interest expense on pre-bankruptcy claims, charges of $244 million for U.S. employee workforce transition programs, $124 million in charges for warranty matters and $112 million of employee termination benefits and other exit costs.

According to the 10-Q filed Tuesday with the Securities and Exchange Commission, the operating loss for the third quarter was $679 million, compared with a $1.79 billion operating loss for the third quarter of 2006.

For the first nine months of 2007, the company posted a $2.5 billion net loss on $19.9 billion of revenue, compared with a $4.6 billion net loss for the first nine months of 2006 on $20 billion in revenues.

According to the release, charges of $532 million in employee termination benefits and other exit costs, $369 million related to interest expense on pre-bankruptcy claims, $353 million related to securities and ERISA litigation settlement, $264 million of charges for warranty matters, $238 million in U.S. employee workforce transition charges and $222 million in long-lived asset impairment charges were included in the net loss for the first nine months of this year.

The operating loss for the first nine months of 2007 was $1.69 billion, improving from a $4.13 billion operating loss for the first nine months of 2006.

As of Sept. 30, Delphi had $1.40 billion of cash and cash equivalents, compared with $1.67 billion as of Dec. 31, 2006.

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8, 2005 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 05-44481.

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