Delphi posts $1.787 billion Q3 operating loss; attrition program costs prompt net loss decline

By Caroline Salls

Pittsburgh, Feb. 13 - Delphi Corp. reported a $1.787 billion operating loss for the quarter ended Sept. 30 on $6.008 billion in net sales, according to a 10-Q filing with the Securities and Exchange Commission.

For the same quarter in 2005, the company reported a $693 million operating loss on $6.283 billion in net sales.

The net loss for the third quarter of 2006 was $1.973 billion, up from a $788 million net loss for the third quarter of 2005.

In a company news release, Delphi said the third-quarter net loss included $1 billion in charges related to the U.S. employee special attrition programs.

"While Delphi continues to experience substantial losses stemming from competitive pressures in our U.S. operations, approximately half of the third-quarter loss was due to charges related to the U.S. employee special attrition programs," executive chairman Robert S. "Steve" Miller said in the release.

"Currently, we remain focused on reaching a consensual agreement with our stakeholders, unions and General Motors on a comprehensive restructuring that will enable Delphi's core U.S. operations to become competitive."

For the nine months ended Sept. 30, the company showed a $4.131 billion operating loss on net sales of $19.976 billion, compared with an operating loss of $1.301 billion for the first nine months of 2005 on $9.76 billion in net sales.

The net loss for the first nine months of 2006 was $4.611 billion, up from a net loss of $1.529 billion for the same period of 2005.

Cash and cash equivalents on Sept. 30 were $1.443 billion, versus $2.221 billion on Dec. 31, 2005.

According to the release, non-GM revenue for the third quarter of 2006 was $3.4 billion, essentially flat compared with third-quarter 2005 revenue of $3.3 billion.

Delphi said non-GM growth was more than offset by a 12% year-over-year decline in GM revenues.

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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