AUTOMOTIVE INDUSTRY Delphi lowers quarterly earnings forecast

The auto parts maker has cuts its projection in half.
TROY, Mich. -- Delphi Corp. lowered its earnings expectations for the second quarter because of factors including lower demand and the temporary shutdown of a General Motors plant.
The auto parts maker said it now expects to earn between $85 million and $95 million, compared with previous estimates of $160 million to $200 million. The new figure includes a $25 million after-tax judgment against Delphi involving a dispute with a supplier.
The new revenue outlook is between $7 billion and $7.1 billion, compared with a previous range of $7 to $7.3 billion.
Delphi is the parent company of Warren-based Delphi Packard Electric Corp., which employs about 6,000 people in the area. Packard makes wiring harnesses and related components.
Weaker demand
Alan Dawes, Delphi vice chairman and chief financial officer, said the numbers were revised because of weaker demand than expected. He said weakness in North America and Europe also will affect the company's results for the full year.
Contributing to the slowdown has been the temporary closing of a General Motors' plant in Oklahoma City, which was damaged by a tornado.
Also affecting the results were the closing of a plant in Moraine, Ohio, and employee separation packages at some plants. These were enacted in the second quarter instead of later in the year.
Delphi also changed its estimates for the full year. It expects earnings of between $375 million and $475 million, compared with a previous estimate of $600 million.
A previous 2003 revenue projection of $28 billion has been revised to $27.5 billion to $28 billion.