Delphi Reports Third Quarter 2007 Financial Results
TROY, Mich. -- Delphi Corp. (OTC:DPHIQ) today reported third quarter 2007 financial results with revenues of $6.2 billion, and a net loss of $1.2 billion. Non-GM revenues were $3.6 billion, representing 58 percent of global revenues.
Third Quarter 2007 Financial Results
* Global Revenue: Revenue of $6.2 billion, slightly up from $6.0 billion in Q3 2006.
* Non-GM Revenue: Non-GM revenue for the quarter was $3.6 billion, up 5 percent from $3.4 billion in Q3 2006, primarily due to favorable impact of foreign currency exchange and favorable volume and mix. Non-GM business represented 58 percent of Q3 revenues, compared to year-ago levels of 57 percent.
* Net Loss: Net loss for the quarter was $1.2 billion or $2.08 per share compared to Q3 2006 net loss of $2.0 billion or $3.51 per share. The Q3 2007 net loss includes an accrual of $369 million for interest expense on certain prepetition claims as contemplated in Delphiâs plan of reorganization filed with the Bankruptcy Court, charges of $244 million for U.S. employee workforce transition programs, $124 million for charges for warranty matters and $112 million of employee termination benefits and other exit costs. Included in the Q3 2006 net loss were charges of $1.0 billion for U.S. employee workforce transition programs.
First Nine Months 2007 Financial Results
* Global Revenue: Revenue of $19.9 billion, virtually flat from $20.0 billion in first nine months of 2006.
* GM Revenue: GM revenue for first nine months of 2007 was $8.3 billion, down approximately 7 percent from $8.9 billion in first nine months 2006. The decrease in GM revenues was primarily due to reductions in GM North America production and the wind-down of certain GM production programs.
* Non-GM Revenue: Non-GM revenue for the first nine months of 2007 was $11.6 billion, up approximately 5 percent from $11.1 billion in the first nine months of 2006 primarily attributable to favorable currency exchange rates. Non-GM revenue accounted for 58 percent of first nine months of 2007 revenues, compared to year-ago levels of 56 percent, primarily due to the reduction in GM revenue.
* Net Loss: Net loss for the first nine months of 2007 was $2.5 billion compared to $4.6 billion for the first nine months 2006. Included in the first nine months of 2007 net loss were charges of $532 million in employee termination benefits and other exit costs, $369 million related to interest expense on certain prepetition claims, $353 million related to the Securities and ERISA litigation settlement, $264 million of charges for warranty matters, $238 million in U.S. employee workforce transition charges and $222 million in long-lived asset impairment charges.
* Cash Flow: Cash flow used in operating activities was $556 million for the first nine months of 2007, as compared to $222 million used in operating activities in the first nine months of 2006. Cash flow from operating activities for the first nine months of 2007 was negatively impacted by payments, net of reimbursement by GM, related to the U.S. employee workforce transition program charges of $306 million as well as increased working capital primarily due to increased volume and the impact of foreign currency exchange rates.
* Liquidity: Delphi continues to have sufficient liquidity available in the U.S. and globally to finance our global operations. As of Sept. 30, 2007, Delphi had $1.4 billion of cash and cash equivalents and $850 million of debt capacity under the refinanced DIP credit facility, which expires Dec. 31, 2007. On Oct. 30, 2007, Delphi began discussions to amend the DIP credit facility in order to extend the term until June 30, 2008, with the ability to further extend the maturity to Sept. 30, 2008.
Additional information concerning Delphi’s third quarter 2007 results is available through the Investor Relations page of Delphi’s website at www.delphi.com and in Delphi’s third quarter Form 10-Q to be filed with the SEC later today.
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