Industry News
Delphi reports $589m loss in first quarter
12th May 2008
Delphi Corp. reported on Friday 9th May first quarter 2008 revenues of $5.3 billion, and a net loss of $589 million, up from $533m a year earlier. Delphi also announced the refinancing and extension of the terms of its debtor-in-possession credit facility to 31st December 2008. Subject to bankruptcy court approval, Delphi will increase the requested capacity of its DIP credit facility from the previously announced $4.1 billion to $4.35 billion, providing the company with approximately $250 million in additional liquidity.
Delphi said GM has agreed to advance amounts expected to be paid to Delphi upon the ‘effectiveness’ of GM-Delphi restructuring agreements, to provide the company with sufficient liquidity to support its transformation plan.
Delphi’s global revenue of $5.3 billion was down from $5.7 billion in Q1 2007. Non-GM revenue for the quarter was $3.6 billion, up from $3.5 billion in Q1 2007, primarily attributable to the favorable impact of foreign currency exchange rates. Excluding the impact of foreign currency exchange rates, non-GM revenue decreased 4%. Non-GM business represented 69% of Q1 revenues, compared to the year-ago level of 62%, primarily due to decreases in GM North America volume of 18%, which includes the impact of work stoppage at a fellow Tier 1 supplier to GM (American Axle & Manufacturing), and contractual price reductions.
Cash flow used in operating activities was $290 million, as compared to $414 million used in operating activities for Q1 2007. The improvement was due to a net reduction in U.S. employee workforce transition programme payments of $146 million.
As of 31st March Delphi had liquidity of $1.8 billion, comprised of cash, cash equivalents and available liquidity under its debtors-in-possession credit facility.
Delphi reaffirmed its commitment to funding its U.S. pension plans and freezing them at emergence from Chapter 11 .
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