Delphi posts loss, flat sales By JEFF KAROUB, Associated Press Writer

Delphi posts loss, flat sales By JEFF KAROUB, Associated Press Writer
1 hour, 23 minutes ago



DETROIT - Delphi Corp. on Wednesday posted a narrower second quarter net loss, reflecting a charge for liability in accounting lawsuits.

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The Troy, Mich.-based auto supplier reported a net loss of $821 million, or $1.46 a share, compared with a loss of $2.3 billion, or $4.05 a share, during the same period last year.

Delphi, the former parts-making business of General Motors Corp., said the $332 million charge reflected estimated liabilities from pending suits over accounting problems that forced it to restate earnings from 1999 to 2004.

Delphi said the estimates don't include possible insurance proceeds and said it's working toward a settlement with a court-appointed representative.

Delphi, which filed for bankruptcy in 2005, said its second-quarter earnings also included $301 million in reorganization costs, such as severance payments and expenses related to a plant closing in Spain.

Delphi's sales were $7 billion, flat from the same quarter last year.

Non-GM revenue for the quarter was $4.1 billion, up 5 percent from $3.9 billion in last year's second quarter.

Non-GM business represented 59 percent of the current quarter's revenue, compared with 56 percent last year, primarily due to a decline in GM revenues.

Excluding favorable foreign currency exchange rates, non-GM growth essentially was flat.

Delphi said Monday it tentatively agreed to contracts with four more unions, including one that recently warned a strike was possible if talks stalled.

A bankruptcy court last week agreed to let Appaloosa Management LP and other investors inject up to $2.55 billion into Delphi as part of its reorganization plan to emerge from bankruptcy.

The company said it expects to file its plan by the end of September and exit bankruptcy protection by the end of the year.

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On the Net:

Delphi Corp.: http://www.delphi.com