By David Barkholz, Automotive News
Detroit, Michigan-Delphi Corp. ended 2006 with a staggering net loss of $5120 million, including a dismal December loss of $461 million.
During the year, Delphi spent about $141 million on professional and legal fees related to its Chapter 11 reorganisation, the company said today in its court-required monthly operating report.
The numbers are unaudited. Delphi put its US operations in Chapter 11 in October 2005.
Buyouts and early retirements that culled more than 20,000 hourly workers in 2006 accounted for about $2930 million of the $5120 million loss, the report shows.
Revenue continued to plunge in December, in the light of production cuts at Delphi's biggest customer, General Motors. December revenue from GM was $692 million, down from $752 million in November and $888 million in October.
The grim earnings report "underscores the need to reach a consensual agreement with labor to bring competitiveness to our US operations," said Delphi spokeswoman Claudia Piccinin.
Delphi hopes to emerge from Chapter 11 protection this year. A group led by Cerberus Capital Management LP and Appaloosa Management LP has offered $3.4 billion for the company.
The bid is contingent on concessions by Delphi's labour unions.
Delphi, of Troy, Michigan, ranks No. 4 on the Automotive News list of the top 100 global suppliers with estimated worldwide original-equipment automotive parts sales of $22 590 million in 2005. "