Delphi reports $542 million fourth-quarter net loss, $2.3 billion 2007 loss from continuing operations

By Caroline Salls

Pittsburgh, Feb. 19 - Delphi Corp. recorded a $542 million net loss for the fourth quarter of 2007, showing improvement over an $853 million net loss for the same period of 2006, according to a company news release.

However, the company reported $5.3 billion in revenues for the fourth quarter of 2007, down from $5.5 billion in fourth-quarter 2006.

According to the release, the fourth-quarter 2007 net loss included a $595 million charge to write down the assets of discontinued operations businesses based on expected proceeds and a $703 million tax benefit in continuing operations related to gains in other comprehensive income attributable to a reduction in employee benefit liabilities.

"The Delphi team has made substantial progress in transforming the company in accordance with our previously announced transformation plan," chief executive officer and president Rodney O'Neal said in the release.

"We continue our focus on emerging from Chapter 11 in a challenging environment."

Meanwhile, the net loss for the year ended Dec. 31 was $3.1 billion, narrowing from a $5.5 billion net loss recorded in 2006.

The company reported $22.3 billion in 2007 revenues, down from $22.7 billion in 2006.

The loss from continuing operations for the year was $2.3 billion, compared to a 2006 net loss from continuing operations of $5.1 billion.

The 2007 loss from continuing operations included $212 million in employee workforce transition program changes, a $98 million long-lived asset impairment charge, a charge of $343 million related to the settlement of Securities and ERISA litigation, $540 million of restructuring charges and $411 million in interest on pre-bankruptcy claims, the release said.

Delphi said it had $1 billion of cash and cash equivalents and $1.2 billion of debt capacity under its refinanced debtor-in-possession credit facility at Dec. 31.

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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