DETROIT - Delphi Corp.'s sales were $27.4 billion in 2002, up 5.1 percent from a year earlier and better than the world's largest auto supplier had forecast. The supplier posted a profit of $343 million last year vs. a loss of $370 million in 2001.
The sales boost came from:
Delphi, based in Troy, Mich., does not release a breakdown of original equipment compared with aftermarket sales for its auto components group.
But the supplier still has challenges, notably with its Automotive Holdings Group, which groups the supplier's troubled businesses units.
Details for that group, formed Jan. 1, will be reported April 16 in the company's first-quarter earnings.
Automotive Holdings includes generator and instrumentation businesses and 12 stand-alone manufacturing sites that make parts including ignitions, brake components, thermal products and batteries.
Delphi also is struggling to replenish its pension fund, which the slumped stock market has harmed.
The supplier's obligation for pension and retiree health care costs stood at $6.9 billion at the end of 2002, vs. $5.4 billion at year end 2001.
Delphi contributed $400 million to its pension fund last year, but by Dec. 31 the fund was underfunded by $4.1 billion, compared with underfunding of $2.4 billion a year earlier.
The supplier expects to contribute $600 million to the pension fund in 2003 and 2004.
"We have very few retirees at this point, and we won't have many for 10 to 12 years," spokeswoman Paula Angelo says of the pension underfunding. "We're still in the exploratory phase, but there are other options than cash contributions out of earnings."