CHICAGO (Reuters) -- Delphi Corp. on Wednesday said its net loss shot wider in the quarter before the auto parts maker filed for bankruptcy, pressured by production cuts at former parent General Motors and high materials costs.
Pressures from low GM production in North America, rising commodity costs, payments to idle workers, and pension and health care for retirees will only intensify U.S. losses until operations are reorganized, Delphi said.
The loss widened to $788 million, or $1.40 per share, in the third quarter, from $119 million, or 21 cents per share, a year earlier, Delphi said. Revenue fell 5.4 percent to $6.28 billion from $6.64 billion.
The net loss included $136 million of accrued contract costs for idle workers previously expected to return to active service, retire, or return to GM, and $85 million of related costs from the third quarter, Delphi said.
Two analysts surveyed by Reuters Estimates on average had expected Delphi to report a net loss of 62 cents per share on revenue of $6.27 billion. Excluding special items, analysts had expected a loss of 72 cents per share.
Delphi ranks No. 2 on the Automotive News list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $24.1 billion in 2004.
Delphi, the largest U.S. auto parts supplier, on Oct. 8 filed the biggest bankruptcy protection case in U.S. automotive history, blaming high wage costs for choking North American operations and masking strong performances in other regions.
Delphi, of Troy, Mich., has asked its unions for steep wage and benefit cuts and work rules changes to slash U.S. costs and expects to make significant reductions in its U.S. operations. International operations are not part of the reorganization.