Delphi reports improved $651 million second-quarter operating loss

By Caroline Salls

Pittsburgh, Aug. 8 - Delphi Corp. reported a $651 million operating loss for the quarter ended June 30 on $7.021 billion in revenues, according to its 10-Q filed Wednesday with the Securities and Exchange Commission.

The figures showed improvement over a $2.112 billion operating loss posted in the second quarter of 2006 on $6.995 billion in revenues.

The net loss for the second quarter of 2007 was $821 million, narrowing from a $2.275 billion net loss for the same period of 2006.

According to a company news release, the net loss reflects a charge of $332 million recorded in the second quarter for the company's current estimate of liability in connection with a lawsuit arising from Delphi's restatement of its financial statements for the period of 1999 to 2004.

Under the direction of a special master appointed by the U.S. District Court for the Southern District of New York, Delphi said it has begun settlement discussions regarding a potential resolution of this lawsuit.

Also included in the second-quarter 2007 net loss were $301 million in employee termination benefit and other exit costs and $39 million in long-lived asset impairment charges, the release said.

For the first six months of 2007, the company posted a $1.006 billion operating loss on revenues of $13.696 billion, compared with a $2.344 billion operating loss for the first six months of 2006 on $13.968 billion in revenues.

The net loss for the first half of 2007 was $1.354 billion, improving from a $2.638 billion net loss for the first half of 2006.

Cash and cash equivalents on June 30 were $1.489 billion, compared with $1.667 billion on Dec. 31, 2006.

Delphi said the change in cash flow from operating activities was driven by payments made as part of its U.S. employee special attrition program and a net increase in working capital.

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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