Delphi Posts Fourth-Quarter Loss

Delphi has reported losses of $102 million (£55 million) in the last three months of 2004, following cost restructuring and the drop in General Motors’ vehicle production, reports the Detroit News.

Excluding special charges, the company lost $51 million, or nine cents a share, against Wall Street estimates of a 15-cent-a-share loss for the quarter.

Total revenues were down three per cent to $7 billion, but the company increased non-GM revenue 14 per cent to $3.4 billion in the fourth quarter.

“Although our preliminary Q4 results are not satisfactory … we recognise that the quarter was on the path to transform Delphi into a leaner, more profitable company and that we have continued moving forward on our key value drivers,” said Mr Battenberg III, Delphi chairman and CEO, in a statement.

A loss of $36 million or six cents a share, including charges, was made across the entire year. Without them, Delphi posted a profit of $157 million (£84 million) or 28 cents a share, writes the American newspaper.

The company has been continually restructuring since gaining independence from GM in 1999, it has closed or consolidated plants and cut its global workforce by 9,675 positions in the last 15 months. Delphi is now expected to cut another 8,500 positions from its workforce this year.

Delphi claims it will now concentrate on non-GM business, which is expected to account for more than half of its revenues this year.