It took Delphi four years to exit bankruptcy, but after a major restructuring and staggering losses, the parts maker is once again ready to sell shares to the public. The Detroit News reports that Delphi will offer a $550-million stock offering later this month. The move comes after Delphi announced in May of 2011 that it would seek an Initial Public Offering, though the $550 million sum is nearly half of the originally announced $1 billion IPO.

Though Delphi suffered massive losses over the past decade, the past two years have been very solid. The parts maker made $703 million in 2010, and through nine months of 2011 Delphi has earned $911 million. Investors will likely like the fact that the $911M in profits came on only $12.1 billion in sales. That's a very healthy margin of 16.3 percent, and with auto sales seemingly only going up, future profits could look even more impressive.

Delphi's labor costs are another reason for the vastly improved profits margins. Delphi got rid of 45,000 U.S. employees during bankruptcy, and now 90 percent of the auto supplier's workforce is located in low-wage countries. That's not a good sign for U.S. manufacturing jobs, but it's likely exactly what investors want to hear.


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    • 1 Second Ago
  • 8 Comments
      The Other Bob
      • 3 Years Ago
      "That's not a good sign for U.S. manufacturing jobs, but it's likely exactly what investors want to hear. " And people wonder why “Wall Street” is so hated. Marking me down will commence in 5, 4, 3, 2,.....
        rtkewley
        • 3 Years Ago
        @The Other Bob
        What does "Wall Street" (whatever that term is meant to mean) have to do with Delphi? Their situation was a result of poor management and a bloated cost structure - the latter at least partially attributable to unrealistic wages paid as a result of union pressure. If your intent is to lay blame (for whatever good that does), lay it at the feet of the proper sources.
          Ed
          • 3 Years Ago
          @rtkewley
          Grr! Unions! All fault of unions! I repeat whatever Glenn Beck says! Management good! Unions bad!
      diffrunt
      • 3 Years Ago
      Our unemployed are the victims of offshoring.
      screwme2009
      • 3 Years Ago
      Who in their right mind would invest in such an unscrupulous company? It’s still run by the same management that ran the company into the ground, laid off hundred of thousands of Americans, turned the salary retirement program over to the PBGC, and flushed all the previous investors’ money down the toilet. You took government relief money and you’re still not creating jobs for Americans. You’re only creating contract jobs so you can be relieved of any social responsibilities.
        carfan
        • 3 Years Ago
        @screwme2009
        maybe this will be a good lesson for whatever istockholderss left of the GREEDY UAW. There is a limit to the proletariat exployting the stock holders. If the proletariat doesn't want to earn realistig wages, there are MANY MANY others who will be more than happy to work for less, even in the USA
      50merc
      • 3 Years Ago
      Sweet hoepfully one day when their are no jobs left we can just become investors!!!!!
      NAIF S
      • 3 Years Ago
      GM makes money too and look at its stock.