Delphi posts $828 million fourth-quarter 2005 net loss, $2.4 billion full-year net loss

By Caroline Salls

Pittsburgh, July 11 - Delphi Corp. reported an $828 million net loss for the fourth quarter of 2005 on $6.8 billion in revenues, according to a company news release.

The net loss was an improvement from a $4.9 billion net loss in the fourth quarter of 2004. Revenues for the 2004 period were $7 billion.

Delphi said the fourth-quarter 2005 net loss included $589 million of non-cash impairment charges related to long-lived assets, goodwill and intangible assets.

Non-General Motors revenue for the 2005 fourth quarter was $3.7 billion, up 7% from $3.4 billion in the fourth quarter of 2004.

Non-General Motors growth was offset by a 14% year-over-year decline in General Motors revenues, the release said.

Cash flow from operations was $763 million in the fourth quarter of 2005, up 9% from $698 million for the same period the year before.

Delphi said cash used in operations was positively impacted by pre-bankruptcy supplier payments being stayed.

The net loss for full-year 2005 was $2.4 billion, compared with $4.8 billion the year before.

According to the release, the full-year net loss reflects revenue decreases and related pricing pressures stemming from a substantial reduction in General Motors' North American vehicle production, together with increased commodity costs.

Revenues for 2005 were $26.9 billion, down from $28.6 billion in 2004.

Non-General Motors revenue for 2005 was $14.1 billion, up 7% from $13.2 billion in 2004.

For the year, 52% of revenues came from customers other than General Motors. In 2005, General Motors revenues declined $2.6 billion or 17% year over year.

Cash flow from operations was $154 million in 2005, down from $1.5 billion in 2004.

Delphi said the lower cash flow from operations resulted from the significantly increased losses from U.S. operations, excluding non-cash charges.

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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