North America's largest auto-parts maker, Delphi Corp., announces 6,100 more job cuts
Wednesday, April 17th 2002, 12:00 am
By: News On 6
DETROIT (AP) _ Delphi Corp., North America's largest auto-parts maker, announced Wednesday it planned to cut 6,100 more jobs, or about 3 percent of its work force.
The former General Motors Corp. subsidiary announced last year that it would eliminate 11,000 jobs as part of a restructuring effort. Including the new cuts, the company expects to eliminate 17,540 jobs from 2001 through the first quarter of 2003.
Delphi, which employs about 195,000 people worldwide, said the cuts would be made at more than 25 locations in the United States and Europe.
The job cuts were announced as the company reported first quarter losses of $51 million, or 9 cents per share, compared with $429 million, or 77 cents per share, in the same period last year. If Delphi had not had the $262 million in pretax restructuring costs for the cuts, it would have earned $123 million, or 22 cents a share, in the 2002 first quarter.
``It's not exactly a boom here, but it looks like we've seen the bottom here and are coming out,'' chief financial officer Alan Dawes said.
Wall Street analysts had forecast earnings of 21 cents before restructuring costs, according to Thomson Financial/First Call.
Delphi said it benefitted from increased auto production in the latest quarter but confronts a tough business environment.
``There are still significant cost pressures. In the U.S., the biggest cost pressures are in health care and in pensions,'' because of losses in its pension funds' investments, Dawes said.
Dawes said the cuts are starting to pay off. Excluding nonrecurring items, the company reached a 1.8 percent profit margin in the first quarter, though still short of its goal of 5 percent.
Troy-based Delphi said its sales turned around in the quarter, rising 2.3 percent in the three months ending March 31 to $6.69 billion from $6.53 billion. The company said 67 percent of sales were to GM.