DELPHI CORP. Independence is a struggle for company

Delphi seeks two-tier wages with the UAW.
DETROIT (AP) -- Delphi Corp. is successfully breaking away from its reliance on General Motors, but the move isn't helping the company's bottom line, an analyst said.
In a research note Friday, Merrill Lynch analyst John Casesa said Delphi continues to make "impressive progress in diversifying its revenue base away from GM, but we continue to wait for signs of improving [profit] margins as a result."
Delphi, which was spun off from GM in 1999, said non-GM revenue in the first quarter amounted to $3.2 billion, up 23 percent from last year's first quarter.
Delphi also is wrapping up negotiations with the United Auto Workers union on a two-tier wage structure the company says will make it more competitive by offering lower wages for new hires. Delphi already has multiple wage tiers at Warren-based Delphi Packard Electric Systems.
Profits
Delphi, the world's largest automotive parts supplier, saw first-quarter profit fall to $54 million from $127 million a year ago. Excluding restructuring charges, earnings for the first quarter was $123 million.
Delphi's ongoing restructuring includes the elimination of 8,500 jobs worldwide by the end of 2004. The company said it has reduced its U.S. hourly work force by 3,750 thus far through retirements, flow backs to GM and attrition. The goal for U.S. operations is 5,000 job cuts.
First-quarter revenue was $7.4 billion, up from $7.2 billion for the same period last year.
Looking ahead, Delphi said sales are expected to be between $28.6 billion and $29.1 billion for 2004 and rise to $29.6 billion in 2006.
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