Delphi third-quarter earnings down; details on sale of non-core units to come by year-end

TROY, Mich. (Oct. 17)—Delphi Automotive Systems Corp. posted net earnings of $26 million on sales of $6.2 billion for the third quarter, vs. net income of $148 million on sales of $6.6 billion during the same quarter of 2000. Like other automotive suppliers, Delphi cited the softening North American, European and South American markets—including sudden late-quarter vehicle production cutbacks—ongoing weak global, aftermarket sales and unusual logistics and manufacturing costs incurred as a result of the September terrorist attacks for the drop in earnings and sales. Delphi said it is on track with plans announced during the first quarter to close nine plants, consolidate more than 40 global operations and cut 11,500 positions from its work force. Year to date, the company has cut 8,500 jobs; it expects the remainder to be completed by the end of the first quarter of 2002. Delphi said it expects to announce plans to resolve the remaining $3 billion to $4 billion of businesses under portfolio review by year-end. Delphi has declined to comment whether its brake hose and mount business is under review, but it does not fit with the company's stated, core focus of producing electronics-related components.