TROY, MI — Delphi Corp. has reported its fourth quarter and calendar year 2007 financial results.
"The Delphi team has made substantial progress in transforming the company in accordance with our previously announced transformation plan," said Rodney O’Neal, Delphi CEO and president. "We continue our focus on emerging from Chapter 11 in a challenging environment."
In the fourth quarter of 2007, Delphi determined that its Interiors and Closures business and its Steering business are discontinued operations for purposes of financial reporting. Included in Delphi’s 2007 results is a loss of $582 million related to discontinued operations. Prior periods have been adjusted to account for these divestitures as discontinued operations.
Delphi reported fourth quarter revenue of $5.3 billion, down from $5.5 billion in the fourth quarter of 2006. Non-GM revenue for the quarter was $3.5 billion or 65 percent of revenue, as compared to $3.3 billion or 60 percent of revenue in the fourth quarter of 2006. Net loss for the quarter was $542 million, compared to the fourth quarter of 2006 net loss of $853 million.
Fourth quarter 2007 net loss includes a charge of $595 million to write down the assets of the discontinued operations businesses based on expected proceeds; as well as a tax benefit of $703 million in continuing operations related to gains in other comprehensive income (a component of stockholders’ equity) attributable to a reduction in employee benefit liabilities.
For the calendar year 2007, Delphi reported revenue of $22.3 billion, down from $22.7 billion in 2006. Non-GM revenue of $14 billion, up 4 percent from $13.4 billion in 2006 (due primarily to the effects of foreign exchange rates). For the year, 63 percent of revenues came from customers other than GM. In 2007, revenues from GM declined $1.0 billion or 11 percent year-over-year.
Loss from continuing operations for the year was $2.3 billion, compared to 2006 net loss from continuing operations of $5.1 billion. Loss from continuing operations before tax in 2007 includes :
— Employee workforce transition program charges of $212 million;
— Long-lived asset impairment charges of $98 million;
— A charge of $343 million related to the settlement of Securities and ERISA litigation;
— Restructuring charges of $540 million; and
— Interest on certain prepetition claims of $411 million.
2006 loss from continuing operations before tax includes:
— Employee workforce transition program charges of $2.7 billion;
— Long-lived asset impairment charges of $172 million; and
— Restructuring charges of $269 million.
Net loss for the year was $3.1 billion, compared to net loss of $5.5 billion for 2006.
Results for 2007 and 2006 include impact of $757 million and $326 million, respectively, in losses from discontinued operations (including a 2007 charge of $595 million for the write down of assets). In addition, 2007 results also include recognition of a tax benefit of $703 million in continuing operations related to gains in other comprehensive income attributable to a reduction in employee benefit liabilities.
Cash flow used in operating activities was $289 million for 2007. Delphi had $1 billion of cash and cash equivalents and $1.2 billion of debt capacity under the refinanced DIP credit facility at Dec. 31, 2007. In 2007, Delphi contributed $209 million to its U.S. pension plans, representing the portion of the pension contribution attributable to services rendered by employees. Delphi’s U.S. under-funded pension plan status as of Dec. 31, 2007, was $3.3 billion.
