CHICAGO -- Delphi Corp. on Wednesday cut its dividend for the second time in 2005 to conserve cash for its restructuring and cope with production cuts at former parent General Motors.
Delphi's board cut its dividend to 1.5 cents per share from 3 cents per share, payable Aug. 2 for shareholders of record at the close of business on July 5.
The Troy, Michigan-based parts maker has struggled under high wage and benefit costs since its spinoff from GM in 1999. Delphi expects later in June to restate results following an investigation into accounting improprieties that has forced out four executives in recent months.
Delphi had cut its quarterly dividend to 3 cents per share from 7 cents per share in March.
Delphi ranked No. 1 on the Automotive News list of top 150 original equipment suppliers to North America with original equipment sales of $17.59 billion in 2004.