Delphi posts $355 million first-quarter operating loss

By Caroline Salls

Pittsburgh, May 7 - Delphi Corp. reported a $355 million operating loss for the quarter ended March 31 on $6.675 billion in total net sales, according to a 10-Q filed with the Securities and Exchange Commission.

The loss widened from a $232 million operating loss for the same quarter of 2006 on $6.973 billion in net sales.

The net loss for the first quarter of 2007 was $533 million, up from a $363 million net loss for the first quarter of 2006.

According to a company news release, the net loss for the first quarter of 2007 included $160 million of long-lived asset impairment charges, as well as $73 million in increased employee termination benefits and other exit costs.

Delphi said its net loss was further impacted by lower production volumes, commodity price increases and U.S. legacy liabilities.

Cash and cash equivalents on March 31 were $4.187 billion, compared with $1.667 billion on Dec. 31.

"While Delphi's financial performance continues to reflect its uncompetitive U.S. cost structure, we are aggressively working on two fronts to improve the business - first, customer diversification by expanding our non-GM sales; and second, cost reductions through SG&A restructuring and operational excellence," chief executive officer and president Rodney O'Neal said in a company news release.

"Our people are focused on exceeding our customers' expectations - evidenced by a solid portfolio of new business bookings and excellent operating metrics - and our leadership is addressing transformation issues aimed at reaching consensual agreements with our stakeholders.

"Together, these actions should enable Delphi to emerge from Chapter 11 as a technology leader with a competitive cost structure later this year."

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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