Delphi Reports Second Quarter 2007 Financial Results
TROY, Mich. — Delphi Corp. today reported second quarter 2007 financial results with revenues of $7.0 billion, and a net loss of $821 million. Non-GM revenues were $4.1 billion, representing 59 percent of global revenues.
Delphi’s net loss reflects a charge of $332 million recorded in the second quarter of 2007 for its current estimate of liability, net of previous accruals, in the Securities and ERISA multi-district litigation pending in the U.S. District Court for the Eastern District of Michigan, arising from Delphi’s restatement of its financial statements for the period 1999 to 2004. Delphi noted that this estimate of liability does not consider any insurance proceeds that may be recoverable under Delphi’s insurance policies. Under the direction of a special master appointed by the U.S. District Court, Delphi has begun settlement discussions regarding a potential resolution of these matters.
Second Quarter 2007 Financial Results
* Global Revenue: Revenue of $7.0 billion, flat from $7.0 billion in Q2 2006.
* Non-GM Revenue: Non-GM revenue for the quarter was $4.1 billion, up 5 percent from $3.9 billion in Q2 2006. Non-GM business represented 59 percent of Q2 revenues, compared to year-ago levels of 56 percent, primarily due to a 6 percent year-over-year decline in GM revenues. Excluding the favorable impact of foreign currency exchange, non-GM growth for the second quarter was essentially flat.
* Net Loss: Net loss of $821 million or $1.46 per share compared to Q2 2006 net loss of $2.3 billion or $4.05 per share. Included in the Q2 2007 net loss were charges of $332 million related to the Securities and ERISA litigation, employee termination benefit and other exit costs of $301 million (including $207 million related to the exit of the manufacturing facility in Cadiz, Spain), and long-lived asset impairment charges of $39 million. Included in the Q2 2006 net loss were charges of $1.9 billion for the U.S. employee special attrition programs.
First Half 2007 Financial Results
* Global Revenue: Revenue of $13.7 billion, down from $14.0 billion in first half 2006.
* Non-GM Revenue: Non-GM revenue for first half 2007 was $8.0 billion, up approximately 4 percent from $7.7 billion in first half 2006. Non-GM business reached 59 percent of first half 2007 revenues, compared to year-ago levels of 55 percent. The increase in non-GM revenues was primarily due to the impact of favorable currency exchange rates.
* Net Loss: GAAP net loss of $1.4 billion compared to first half 2006 net loss of $2.6 billion. Included in the first half 2007 GAAP net loss were charges of $332 million related to the Securities and ERISA litigation, employee termination benefit and other exit cost charges of $420 million (including $268 million related to the exit of the manufacturing facility in Cadiz, Spain), and long-lived asset impairment charges of $199 million. Included in the first half 2006 net loss were charges of $1.9 billion for the U.S. employee special attrition programs.
* Cash Flow: Cash flow used in operating activities was $431 million for the first six months of 2007, as compared to $187 million provided by operating activities in the first six months of 2006. The change in cash flow from operating activities was driven by payments made as part of the U.S. employee special attrition program, net of reimbursements from GM, and a net increase in working capital.
* Liquidity: Delphi continues to have sufficient liquidity available in the U.S. and globally to finance our global operations. As of June 30, 2007, Delphi had $1.5 billion of cash and cash equivalents and $1.0 billion of debt capacity under the refinanced DIP credit facility.
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