THIRD QUARTER Delphi reports a loss of $114M

The automotive supplier's non-GM business rose.
DETROIT (AP) -- Delphi Corp., the world's largest automotive supplier, said today it lost $114 million in the third quarter, reflecting lower North American vehicle production and higher material costs.
The July-September loss, which amounted to 20 cents a share, was far less than the loss of $353 million, or 63 cents a share, posted in the year-ago quarter when Delphi took a $356 million charge for restructuring.
Excluding $25 million in restructuring charges in the most recent quarter, Troy-based Delphi posted a loss of $66 million, or 12 cents a share, in line with the Wall Street consensus compiled by Thomson First Call.
Sales in the third quarter totaled $6.65 billion, up from $6.56 billion a year ago.
Delphi said earlier this month it expected to post a wider third-quarter loss than previously anticipated because of lower vehicle production and higher material costs.
At the time, company officials said they anticipated 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.
"As we discussed Oct. 5, the third quarter was a more challenging environment than we experienced in the first half of 2004, with increased commodity pressures, low production volumes, product launch issues and lower attrition," J.T. Battenberg III, Delphi's chairman, chief executive and president, said in a statement. "While we have near-term challenges, our long-term strategy remains on track."
General Motors Corp., Delphi's largest customer, and Ford Motor Co. both announced planned fourth-quarter production cuts for North America in September.
Several other suppliers also have warned of lower third-quarter earnings because of North American production cuts and rising material costs such as steel.
Diversification
Delphi, which was spun off from GM in 1999, said its client diversification efforts continue to pay off, as non-GM business accounted for 47 percent of third-quarter revenue, up from 45 percent in the second quarter and 40 percent a year ago.
The company said it also generated $360 million in operating cash flow in the most recent quarter, more than double the result from a year ago.
"This strong cash flow generation, fueled by our non-GM revenue growth and aggressive cost reductions, allowed Delphi to strengthen its balance sheet and will continue to position Delphi for long-term value creation," Battenberg said.
Delphi is the parent company of Warren-based Delphi Packard Electric Systems, which makes wiring harnesses and related parts for vehicles.
Copyright 2004 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.