FINANCES Delphi Corp. anticipates wider loss

DETROIT (AP) -- Delphi Corp., the world's largest automotive supplier, said Tuesday it expects to post a wider third-quarter loss than previously anticipated because of lower vehicle production and higher material costs. Delphi said it now expects to post a net loss of $113 million to $120 million for the July-September period, versus a previous forecast of a loss of $10 million to $40 million.
Excluding charges for restructuring, Delphi said it expects a net loss for the quarter of $65 million to $72 million on revenue of about $6.65 billion. That compares with a prior forecast of a loss of $20 million to a profit of $10 million.
Ford and General Motors Corp., Delphi's largest customer, both announced planned fourth-quarter production cuts for North America early last month.
"During the second half of the year, we have experienced a more challenging U.S. volume environment, increased commodity price pressures as well as program launch and volume-related cost issues," said Alan Dawes, Delphi's chief financial officer.
To help improve finances, Delphi said it would defer "noncritical" spending and hiring. The supplier has reduced its U.S. hourly head-count by about 5,500 in the past year.
Delphi is the parent company for Warren-based Delphi Packard Electric Systems.