Delphi abandoned its outlook for 2005 after the company reported unaudited first quarter 2005 financial results with revenues of $6.9 billion, and a GAAP net loss of $409 million or $0.74 per share.
Delphi’s inability to record the non-cash deferred tax benefit of its U.S. losses had a big impact on the quarter’s huge loss. Delphi had expected before to record a tax benefit during 2005 of between 40 – 60% of its pre-tax losses.
In the first quarter, the company generated $112 million in operating cash flow. Delphi’s net liquidity improved during the quarter with a cash balance of $1.15 billion at March 31, 2005. Non-GM revenues grew 8% year-over-year to $3.5 billion.
“Versus our expectations for the first quarter, we were significantly challenged by weaker-than-expected production volumes with some of our larger North American customers,” said Delphi Chairman and CEO, J.T. Battenberg III. “We expect these pressures to continue for the remainder of the year. Delphi’s management team is focused on addressing these issues while remaining committed to serving our customers’ needs.”
“At the same time as we work to address our short-term challenges, we continue to grow our business through our ongoing technology leadership, global expansion and adjacent market growth,” he added. “During the quarter, Delphi was able to reach a new milestone with non-GM revenues reaching 51% of total sales.”
As the company’s press release says, the unaudited financial results reflect adjustments for the effects of the improper accounting for transactions identified as a result of Delphi’s Audit Committee’s internal investigation. The unaudited results are preliminary and subject to review by Delphi’s independent auditors.
Chris is a staff writer for murdok. Visit murdok for the latest ebusiness news.
