DETROIT -- Delphi Corp. posted a $115 million U.S. operating loss in January, bringing the distressed supplier's U.S. operating losses to $862 million in the period between its Oct. 8 Chapter 11 filing and Jan. 31.
According to unaudited numbers filed with the Securities and Exchange Commission on Tuesday, Delphi spent about $10 million in January on professional fees, including legal fees, related to its reorganization. Through January, professional fees had cost Delphi about $41 million, the documents show.
Interest charges during the month totaled $30 million. Combined with $4 million in other expenses, January losses in the United States totaled $149 million before reorganization items, income taxes and equity income.
The monthly report was filed as part of Delphi's obligations in U.S. Bankruptcy Court.
The Michigan supplier sought Chapter 11 protection for its U.S. operations because of mounting losses. Delphi blamed customers' production cuts, higher raw-material costs and what it says are uncompetitive labor costs.
Delphi Corp. ranks No. 2 on the Automotive News list of the top 100 global suppliers with estimated worldwide original-equipment automotive parts sales of $24.1 billion in 2004.
Delphi is in talks with its unions and General Motors, its largest customer, in an effort to cut labor costs and divest U.S. plants. Delphi has given the UAW and its five other unions until March 31 to agree to concessions or it plans to ask the U.S. Bankruptcy Court in New York to terminate its labor contracts.
In its last offer, Delphi wanted UAW hourly wages to fall from an average of $27 to about $12.50. The UAW called the offer insulting.
General Motors, which could be responsible for up to $12 billion in future Delphi pension obligations, could help by buying out hourly GM employees. That would allow Delphi employees to flow back to the automaker.
Delphi was created in 1999, when GM spun off its parts operations. Delphi has about 34,000 hourly U.S. employees, including 25,000 represented by the UAW.
The UAW said it might strike Delphi if the company uses the bankruptcy court to terminate labor contracts. A strike could shut GM assembly plants within days. About half of Delphi's revenue is generated from sales to GM.
Delphi posted U.S. sales in January of $1.47 billion. Between the Chapter 11 filing and Jan. 31, sales totaled $5.8 billion.
You may e-mail Dave Barkholz at [email protected]