TROY, Mich., Aug. 15 /PRNewswire-FirstCall/ -- Delphi Corp. today
reported first half 2006 financial results with revenues of $14.0 billion,
and a GAAP net loss of $2.6 billion, including charges of $1.9 billion
associated with the company's special attrition program. The company
generated $187 million in GAAP cash flow from operations in the first half
of the year. Non-GM revenues grew 9 percent year-over-year to $7.7 billion,
representing 55 percent of global revenues.
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"In the first half of the year, Delphi achieved an 85 percent
acceptance rate of UAW employees signing up for its special attrition
program," said Robert Dellinger, Delphi chief financial officer. "The
attrition programs are a step in our transformation; however, we continue
to experience losses reflecting an uncompetitive U.S. cost structure. Our
leadership is addressing these issues with our stakeholders, including our
unions and General Motors, as part of our reorganization proceedings
through the bankruptcy court."
First Quarter 2006 Financial Results
* Revenue of $7.0 billion, up approximately 2 percent from $6.9 billion
in Q1 2005.
* Non-GM revenue for the quarter was $3.8 billion, up approximately 8
percent from $3.5 billion in Q1 2005. Non-GM business represented 54
percent of Q1 revenues, compared to year-ago levels of 50 percent.
* GAAP cash flow used in operating activities was $93 million, as
compared to $529 million provided by operating activities for Q1 2005. Cash
used in operations was negatively impacted by the timing of cash
collections on sales for Q1 2006.
* GAAP net loss of $363 million or a loss of $0.65 per share compared
to Q1 2005 net loss of $403 million or a loss of $0.73 per share.
Second Quarter 2006 Financial Results
* Revenue of $7.0 billion, the same as in Q2 2005.
* Non-GM revenue for the quarter was $3.9 billion, up approximately 9
percent from $3.6 billion in Q2 2005. Non-GM business reached 56 percent of
Q2 revenues, compared to year-ago levels of 51 percent.
* GAAP cash flow provided by operating activities was $280 million, as
compared to cash flow used in operating activities of $305 million in Q2
2005.
* GAAP net loss of $2.3 billion compared to Q2 2005 net loss of $338
million. Included in the Q2 2006 GAAP net loss are charges related to the
previously announced special attrition programs. These charges include a
net pension and postemployment benefit curtailment charge of $1.5 billion,
primarily due to reductions in anticipated future service as a result of
the retirements, and $392 million of charges related to the pre-retirement
and buyout portions of the special attrition programs.
First Half 2006 Financial Results
* Revenue of $14.0 billion, up slightly from $13.9 billion in first
half 2005.
* Non-GM revenue for first half 2006 was $7.7 billion, up approximately
9 percent from $7.1 billion in first half 2005. Non-GM business reached 55
percent of first half 2006 revenues, compared to year-ago levels of 51
percent.
* GAAP cash flow provided by operating activities was $187 million, as
compared to $224 million provided by operating activities for first half
2005.
* GAAP net loss of $2.6 billion compared to first half 2005 net loss of
$741 million. Included in the first half 2006 GAAP net loss are charges
related to the previously announced special attrition programs. These
charges include a net pension and postemployment benefit curtailment charge
of $1.5 billion, primarily due to reductions in anticipated future service
as a result of the retirements, and $392 million of charges related to the
pre-retirement and buyout portions of the special attrition programs.
Additional Information
Additional information concerning Delphi's (Pink Sheets: DPHIQ.PK)
first and second quarter 2006 results is available through the Investor
Relations page of Delphi's website at http://www.delphi.com and in Delphi's
first and second quarter Form 10-Qs, scheduled to be filed with the
Securities and Exchange Commission later today.
FORWARD LOOKING STATEMENT
This press release, as well as other statements made by Delphi may
contain forward-looking statements within the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995, that reflect, when
made, the company's current views with respect to current events and
financial performance. Such forward-looking statements are and will be, as
the case may be, subject to many risks, uncertainties and factors relating
to the company's operations and business environment which may cause the
actual results of the company to be materially different from any future
results, express or implied, by such forward-looking statements. Factors
that could cause actual results to differ materially from these
forward-looking statements include, but are not limited to, the following:
the ability of the company to continue as a going concern; the ability of
the company to operate pursuant to the terms of the debtor-in-possession
("DIP") financing facility; the company's ability to obtain court approval
with respect to motions in the chapter 11 proceeding prosecuted by it from
time to time; the ability of the company to develop, prosecute, confirm and
consummate one or more plans of reorganization with respect to the Chapter
11 cases; risks associated with third parties seeking and obtaining court
approval to terminate or shorten the exclusivity period for the company to
propose and confirm one or more plans of reorganization, for the
appointment of a chapter 11 trustee or to convert the cases to chapter 7
cases; the ability of the company to obtain and maintain normal terms with
vendors and service providers; the company's ability to maintain contracts
that are critical to its operations; the potential adverse impact of the
Chapter 11 cases on the company's liquidity or results of operations; the
ability of the company to execute its business plans, including the
transformation plan described in the Company's March 31, 2006 press
release, and to do so in a timely fashion; the ability of the company to
attract, motivate and/or retain key executives and associates; the ability
of the company to avoid or continue to operate during a strike, or partial
work stoppage or slow down by any of its unionized employees; and the
ability of the company to attract and retain customers. Other risk factors
are listed from time to time in the company's United States Securities and
Exchange Commission reports, including, but not limited to the Annual
Report on Form 10-K for the year ended December 31, 2005. Delphi disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events and/or
otherwise.
Similarly, these and other factors, including the terms of any
reorganization plan ultimately confirmed, can affect the value of the
company's various pre-petition liabilities, common stock and/or other
equity securities. Additionally, no assurance can be given as to what
values, if any, will be ascribed in the bankruptcy proceedings to each of
these constituencies. A plan of reorganization could result in holders of
Delphi's common stock receiving no distribution on account of their
interest and cancellation of their interests. Under certain conditions
specified in the Bankruptcy Code, a plan of reorganization may be confirmed
notwithstanding its rejection by an impaired class of creditors or equity
holders and notwithstanding the fact that equity holders do not receive or
retain property on account of their equity interests under the plan. In
light of the foregoing and as stated in its October 8, 2005, press release
announcing the filing of its Chapter 11 reorganization cases, the company
considers the value of the common stock to be highly speculative and
cautions equity holders that the stock may ultimately be determined to have
no value. Accordingly, the company urges that appropriate caution be
exercised with respect to existing and future investments in Delphi's
common stock or other equity interests or any claims relating to
pre-petition liabilities.
SOURCE Delphi Corporation
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Related links:
http://www.delphi.com/media
http://www.delphi.com
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CONTACT:
Claudia Piccinin, +1-248-813-2942, or Joe
Vitale, +1-248-813-2498, both of Delphi Corporation
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