Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
Delphi Revenues Total $7.5 Billion
TROY, Mich. -- Delphi Corp.'s second quarter 2004 revenues of $7.5 billion are up 6% compared with the same period in 2003, driven by 23% growth in non-GM sales, officials reported Friday. But the company also said it anticipates lower NorthAmerican production levels in the third quarter, and revenue isexpected to range between $6.4 billion and $6.8 billion, or close toDelphi's 2004 break-even point."At these lower revenuelevels, we're expecting a loss between $10 million and $40 million," said Alan Dawes, Delphi vice chairman and chief financial officer. "Excluding up to $20 million of after-tax restructuringexpenses, we're expecting pro-forma net income to range between a lossof $20 million to positive earnings of $10 million."In the second quarter, strong revenue growth and cost improvements contributed to net income of $131 million or 23 cents per share, the company reported, compared to second quarter 2003 net income of $88 million, or 16 cents per share."Delphi's aggressive customer diversification drove non-GM sales to a record 45% of second quarter revenues," said J.T. Battenberg III, chairman, president and chief executive officer. "We are seeing this revenue growth translate into strong operating cash flow, which grew 36% this quarter compared to the second quarter of 2003."The company generated $469 million in operating cash flow for the quarter driven by higher earnings, improvements in accounts receivables and capital spending efficiencies, Dawes noted. "Delphi's strong operating cash flow allowed us to strengthen the balance sheet through pension contributions as well as fund ongoing restructuring activities," he said.During the second quarter, Delphi recorded $46 million in pre-tax charges primarily relating to high-wage U.S. hourly work force reductions."Delphi reduced its U.S. hourly work force by 1,175, bringing our total reductions to 4,925 against our goal of 5,000 by year end," Dawes said. "We have met the salaried and global headcount reductions, and we expect to exceed planned U.S. hourly headcount reductions by 500 to 1,000 through additional attrition by year end. We anticipate the additional U.S. hourly attrition will result in $15 million of additional costs. On balance, this additional attrition will not result in further one-time costs as they will be compensated by the favorable $12 million tax item. Total charges remaining for planned restructuring activities are expected to be $70 million pre-tax."Revenue for the first six months of 2004 was $15 billion as compared to$14.3 billion for the same period in 2003. Non-GM revenue was $6.6billion, up 23% from the first half of 2003.During the quarter, Delphi reached the one million mark in sales of portable satellite radio receivers to retailers. In total, Delphi has sold 2.6 million receivers including both retail and original equipment radios. Also, Delphi and XM Satellite Radio introduced an all new plug-and-play satellite radio receiver and the industry's first plug-and-play satellite radio package for marine applications.In April, Delphi and its labor unions finalized a seven-year supplement to the 2003 UAW-Delphi National Agreement that set new-tiered wage and benefit levels for future hires. Visit Delphi Automotive at www.delphi.com"