CHICAGO – Auto parts supplier Delphi Corp. (DPH) on Monday posted a smaller quarterly loss as lower restructuring charges offset the effects of North American motor vehicle production cuts and rising materials costs.
Delphi, the No. 1 U.S. auto parts maker, said it continues to look for ways to defer some spending, limit hiring and work with unions, suppliers and customers on more cost cuts. It warned earlier this month that the quarter would be worse than previously expected, and the results matched lowered expectations.
Delphi said its third-quarter net loss narrowed to $114 million, or 20 cents per share, from $353 million, or 63 cents per share.
Restructuring charges totaled $25 million last quarter, down from some $356 million a year earlier when Delphi was in the middle of a plan to cut jobs and product lines to become less reliant on former parent General Motors Corp. (GM)
Excluding the charges, Delphi reported a loss of $66 million, or 12 cents per share, in line with the analysts' average forecast, according to Reuters Estimates.
Net revenue rose to $6.65 billion from $6.56 billion a year earlier for the Troy, Mich.-based company. About 47 percent of the revenue came from non-GM sources, the company said.
Other suppliers also have warned that rising materials costs and the North American production cuts by GM and Ford Motor Co. (F) would hurt results.
Delphi stood by its projection of fourth-quarter results ranging from a net loss of $18 million to a profit of $32 million. It projected earnings excluding restructuring and other charges of $25 million to $75 million.
Delphi trimmed its full-year net income forecast to a range of $48 million to $98 million from a range $47 million to $104 million and lowered its earnings excluding restructuring charges and other items to a range of $233 million to $283 million from a range of $232 million to $289 million.
The auto parts supplier said it still expects net revenue of $7 billion to $7.2 billion in the fourth quarter and $28.6 billion to $28.8 billion for the year.
Analysts on average expect Delphi to earn 8 cents per share in the fourth quarter on revenue of about $7.04 billion and to earn 45 cents per share for 2004 on revenue of $28.67 billion, according to Reuters Estimates.