Delphi Expects Net Loss, Plans (8,500) Job Cuts

http://www.investor.reuters.com/CompanyOverview.aspx?ticker=GM.N

CHICAGO (Reuters) - Auto parts supplier Delphi Corp. (DPH.N: Quote, Profile, Research) said on Friday it expects a 2005 net loss of about $350 million because of North American production cuts and rising materials costs, and plans about 8,500 job cuts.

Delphi also said it expects a net loss in the fourth quarter and full-year 2004 and said the production cuts may lead to some asset impairment charges in the fourth quarter related to cost structures inherited from former parent General Motors Corp. (GM.N: Quote, Profile, Research) .

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http://cbs.marketwatch.com/news/story.asp?guid=%7B1B894506%2D88D4%2D4C5A%2D900E%2D985CE3417984%7D&siteid=mktw

NEW YORK (CBS.MW) -- Delphi Corp., the world's largest auto supplier, is getting smaller, announcing Friday it would cut 8,500 positions and post lower fourth-quarter earnings.

Delphi said global production volumes and commodity price increases would translate to fourth-quarter revenue at the Troy, Mich.-based company of $6.9 billion to $7 billion, about $200 million below its previous expectations.

Delphi said that 2,300 "high-wage redundant workforce" positions would be eliminated as part of a plan to speed up retirements and normal attrition for about 3,000 U.S. hourly employees. Another 5,500 jobs based outside the U.S. would be scrapped.

Shares of Delphi (DPH: news, chart, profile), a former unit of General Motors, rose 11 cents in pre-open trading on Instinet to $8.75.

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