DETROIT -- Delphi Corp. posted a loss of $4.75 billion in 2004 on sales of $28.62 billion, the supplier said late Thursday afternoon in its annual report. Most of that loss is the result of a one-time accounting charge.
A Delphi spokeswoman said the charge was for deferred tax benefits that the supplier had previously booked.
Under accounting rules, Delphi could not continue to recognize the deferred tax benefits without the expectation of its U.S. operations returning to profitability in the near term, Delphi spokeswoman Claudia Baucus said. Delphi warned in the first quarter of this year that it did not expect its U.S. operating outlook to improve in the near or mid-term.
Baucus wouldn't say when Delphi expects to return to profitability.
Delphi already had restated earnings for 2001, 2002 and 2003. Delphi reduced its retained earnings in 2001 to $1 billion, down from $1.26 billion. The company also cut its net income for 2002 to $318 million, down from $342 million. And Delphi reduced its 2003 loss to $10 million, down from a loss of $56 million.
The restatements and the late 2004 annual report filing come in the wake of accounting investigations by the Securities and Exchange Commission and the FBI. Several executives have lost their jobs, including former CFO Alan Dawes. The probes also have tainted the retirement of CEO J.T. Battenberg III, who stepped down Thursday.
Battenberg will be succeeded by Steve Miller, 63, who was named chairman and CEO starting July 1. Battenberg, 62, will stay on through July as a consultant.
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