Delphi amends November financial results; operating loss plunges to $233 million

By Caroline Salls

Pittsburgh, Jan. 4 - Delphi Corp. filed an amended operating report for November to correct a reclassification of some line items, according to an 8-K filed Friday with the Securities and Exchange Commission.

The amended filing reports a $233 million operating loss for November on $1.145 billion in total net sales, compared to the $50 million operating loss originally reported on Dec. 31.

The November total net sales number was not changed, nor was the previously reported $231 million net loss.

According to the filing, the net loss in the statement of operations was properly reported, but cost of sales was understated and equity income loss or earnings from non-debtor affiliates should have included additional income.

The amended November report lists the cost of sales at $1.206 billion and $45 million in equity earnings from non-debtor affiliates.

In comparison, the original financial statements filed on Dec. 31 listed the cost of sales at $1.023 billion and a $138 million equity loss from non-debtor affiliates.

Delphi said the reclassification also caused investments in non-debtor affiliates and accounts payable to non-debtor affiliates on the balance sheet to be understated.

The amended statement reported $4.229 billion in investments in non-debtor affiliates for November and $708 million in accounts payable to non-debtor affiliates.

Meanwhile, the original statement reported $4.046 billion in investments in non-debtor affiliates and $525 million in accounts payable to non-debtor affiliates.

The company said the monthly cash flows provided by operating activities in the statement of cash flows were properly reported because the reclassification impacted offsetting items within cash flows provided by operating activities.

The amount of the reclassification that impacted the original financial statements was $183 million, the filing said.

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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