Chicago, May 14 (Reuters): Delphi Corporation, the auto parts manufacturer, posted a quarterly loss due primarily to production cuts at its main customer General Motors (GM) and warned of a bigger loss in 2005 than previously forecast.
Delphi said it expected the loss to be greater in 2005 than the $350 million loss it previously forecast because of large vehicle production cuts by GM and high commodity prices. The company was spun off from GM in 1999.
It's not a pretty picture, but at this point the company has a fair amount of liquidity to weather the storm, Calyon Securities analyst Joseph Amaturo said. I would expect the shares to come under pressure.
We were really disappointed with the first-quarter performance, but it was a low production environment then, acting chief financial officer John Sheehan said.
Delphi reported a first-quarter net loss of $409 million, or 74 cents per share, compared with net income of $53 million, or 9 cents per share, a year earlier.
Revenue fell 7 per cent to $6.9 billion. Non-GM revenue rose about 8 per cent to $3.5 billion.
The results released are preliminary, said a company release, which plans to complete its internal accounting investigation and release restated financial results by June 30.
Earlier, Delphi said it might have to restate financial results from 2001 onward because of accounting improprieties, which prompted the resignation of its chief financial officer.