Delphi Books $3.3B in New Steering, Halfshaft Business in ’06
Steering division achieves second-largest bookings in 100-year history
Delphi Steering president cites diversified global customer base, conquest sales, customer-focused team as points of strength
December 06, 2006 - TROY, Mich. — Delphi Corporation has already booked $3.3 billion in new steering and halfshaft business to date in 2006, and expects additional new business awards prior to year-end, company officials said today.
Most of the new business awards are approximately five years in duration. Further details remain confidential at the customers’ request.
Sixteen global customers are included among the new business awards, with no single customer representing more than 50 percent of the total business. More than half of the new business is for vehicles produced in Europe, Asia and South America.
The products sold include electric and hydraulic power steering systems, steering columns, gears, hoses and halfshafts.
“We’re showing remarkable strength during a turbulent time for the entire industry,” said Bob Remenar, president, Delphi Steering division. “This sales performance shows that we have strong technologies that excite a diversified and global customer base. We have a team that is committed to bringing value to our customers. Our team has built strong sales momentum throughout the year. We expect that momentum to continue for the remainder of the year and into 2007.”
Beyond the short-term improvement, the news has historical significance: In the 100 years that Delphi has been producing steering components and systems, 2006 will represent the second-strongest bookings year ever. As the division continues to book sales for the remainder of the year, Remenar said he expects that 2006 will reflect more than a 50-percent gain compared with 2005.
Remenar further said that more than 30 percent of the new business in 2006 is conquest business. “It’s really simple,” Remenar said. “We expect that as more customers get to know us — our people, our products, our quality, and our global footprint, with our engineering and manufacturing capabilities — they will want to do more business with Delphi Steering.”
Delphi Steering now supports 64 customers worldwide.
The division has more than 9,200 employees at 22 manufacturing plants, 11 customer support centers, and five regional engineering centers worldwide.
Delphi Steering has 100 years of experience, beginning with steering gears in 1906, and has delivered more than 300 million steering pumps, 200 million steering gears, and 6 million electric power steering systems to its diversified customer base. The division has a history of industry-leading innovations, including the first tilt-wheel steering column and energy-absorbing steering column. Delphi has further enhanced its steering portfolio with the next generation of cost-effective active hydraulic and electric steering products to improve the driving experience. Innovation continues today in the areas of safety, comfort and convenience, and fuel efficiency to meet customers’ needs globally.
FORWARD LOOKING STATEMENT
This press release, as well as other statements made by Delphi, may contain forward-looking statements that reflect, when made, the company’s current views with respect to current events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the company’s operations and business environment which may cause the actual results of the company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the company to continue as a going concern; the ability of the company to operate pursuant to the terms of the debtor-in-possession facility; the company’s ability to obtain court approval with respect to motions in the chapter 11 cases prosecuted by it from time to time; the ability of the company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 cases; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the company to propose and confirm one or more plans of reorganization, for the appointment of a chapter 11 trustee or to convert the cases to chapter 7 cases; the ability of the company to obtain and maintain normal terms with vendors and service providers; the company’s ability to maintain contracts that are critical to its operations; the potential adverse impact of the Chapter 11 cases on the company’s liquidity or results of operations; the ability of the company to fund and execute its business plan (including the transformation plan described in Item 1. Business “Potential Divestitures, Consolidations and Wind-Downs” of the Annual Report on Form 10-K for the year ended December 31, 2005 filed with the SEC) and to do so in a timely manner; the ability of the company to attract, motivate and/or retain key executives and associates; the ability of the company to avoid or continue to operate during a strike, or partial work stoppage or slow down by any of its unionized employees; and the ability of the company to attract and retain customers. Other risk factors are listed from time to time in the company’s United States Securities and Exchange Commission reports, including, but not limited to the Annual Report on Form 10-K for the year ended December 31, 2005. Delphi disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise.
Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the company’s various pre-petition liabilities, common stock and/or other equity securities. Additionally, no assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies. A plan of reorganization could result in holders of Delphi’s common stock receiving no distribution on account of their interest and cancellation of their interests. Under certain conditions specified in the Bankruptcy Code, a plan of reorganization may be confirmed notwithstanding its rejection by an impaired class of creditors or equity holders and notwithstanding the fact that equity holders do not receive or retain property on account of their equity interests under the plan. In light of the foregoing and as stated in its October 8, 2005, press release announcing the filing of its Chapter 11 reorganization cases, the company considers the value of the common stock to be highly speculative and cautions equity holders that the stock may ultimately be determined to have no value. Accordingly, the company urges that appropriate caution be exercised with respect to existing and future investments in Delphi’s common stock or other equity interests or any claims relating to pre-petition liabilities.
- Contact Information
- John Shea
- Delphi Corporation
- Contact via E-mail
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.