Slower automotive production and rising raw material costs helped lead to a third-quarter loss for Delphi Corp., but the company narrowed its loss from last year.
The world's largest auto supplier also said it would end the year with between 9,000 and 9,500 fewer employees worldwide. Earlier this year, Troy, Mich.,-based Delphi said it wanted to cut 500 U.S. salaried jobs, 5,000 U.S. hourly jobs and 3,000 other jobs around the globe. CFO Alan Dawes said Monday that more U.S. hourly workers than expected are retiring.
Delphi has about 186,000 workers worldwide, little changed from the start of the restructuring because cuts in North America and Europe have been about matched by growth in Asia-Pacific, Dawes said.
For the quarter ended Sept. 30, Delphi reported a net loss of $114 million or 20 cents a share on revenue of $6.7 billion. That compares with a net loss of $353 million or 63 cents on revenue of $6.6 billion for the same period last year.
Excluding special charges, Delphi would have reported a net loss of $66 million, in line with analyst estimates. Last year Delphi would have reported net income of $218 million without charges.
For the first nine months of the year, the company reported net income of $66 million or 12 cents a share on revenue of $21.6 billion. That compares with a net loss of $138 million or 25 cents on revenue of $21 billion at this point last year.
The company generated $360 million in free cash flow during the quarter. Non-General Motors business increased 27 percent from last year to 47 percent of sales. Delphi is a former division of GM.
For the year, Delphi said it expects net income of between $48 million and $98 million on revenue of between $28.6 billion and $28.8 billion.
Other suppliers also have warned that rising materials costs and the North American production cuts by GM and Ford Motor Co. would hurt results.
Rising steel and resin prices are the main issue for Delphi and could be a bigger question in 2005 because contracts have covered much of the increase through 2004, Dawes said.