Delphi lost $2.4 billion in 2005

We know, June is a little late to be releasing your annual report for the prior year, but Delphi was forced to wait until discussions with GM and its own unions concerning wage and benefit reductions bore some fruit. That fruit came in the form of an agreement with GM for a historical attrition plan that has seen 12,600 Delphi employees and 35,000 GM workers agree to job transfers, buyouts and early retirement.
Now that the results are in, we've learned that Delphi lost $2.4 billion in 2005, which is an improvement over 2004 when the company lost $4.9 billion. That amounts to a loss of $4.21 per share. In the fourth quarter of 2006, Delphi lost $828 million, which was again an improvement over the same period in 2004 during which it lost $4.9 billion, the bulk which came from a $4.7-billion non-cash write-off.

Delphi's losses were the direct result of GM, its biggest customer, cutting North American vehicle production combined with the rising cost of raw materials. In its filing with the SEC, Delphi warned of many factors that could prevent it from emerging from bankruptcy in mid-2007, though CEO Steve Miller claims that he will keep Delphi's pension promises, rather than passing them off to GM or the federal government.

[Source: The Detroit Free Press]

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