Friday outlined cost-cutting measures, including job cuts, and lowered guidance as it struggled to cope with higher commodity costs.
The auto-parts company cut an additional 8,500 workers among other "aggressive cost-reduction actions."
"This is a reflection of the continued pressures from low global production volumes and commodity price increases in Q4, which are expected to have an even greater impact in the first part of 2005," the company said.
The Troy, Mich.-based company is now forecasting fourth-quarter revenue of $6.9 billion to $7 billion, approximately $200 million lower than its prior guidance. Delphi also forecast a net loss of $123 million to $143 million, on a GAAP basis, and a pro forma loss of $70 million to $90 million, excluding restructuring costs and other items.
Prior to the company's announcement, the consensus estimates were for revenue of $7.06 billion and net income of $50.3 million, according to Thomson First Call.
For full-year 2004, the company forecast a GAAP net loss of $57 million to $77 million and a pro forma loss of $118 million to $138 million, excluding items. Analysts were expecting a profit of almost $241 million.
Looking ahead to 2005, Delphi sees revenue of $28.5 billion to $29 billion and a net loss of $350 million on a GAAP basis, or $200 million on a pro forma basis, excluding items.
The consensus estimates are for revenue of $29.08 billion and net income of $292.4 million.
"We expect that the plans Delphi has in place will, over time, offset the majority of these headwinds; however, the combined forces of the near-term cost and revenue pressures will outpace our progress in the early part of 2005," the company said. "The environment is highly competitive, but we are resolute in our commitment to R&D and in delivering technology-rich, differentiating products as we continue to diversify our customer base."
Previously, Delphi said it anticipated total job reductions to be more than 6,000 through the end of 2004 and had also closed and consolidated plants.
In the third quarter, the company posted a net loss of $114 million, or 20 cents a share, on a GAAP basis, vs. a loss of $353 million, or 63 cents a share, in the year-ago period. Excluding restructuring costs and other items, the company lost $66 million, or 12 cents a share. Revenue inched up to $6.65 billion, from $6.56 billion a year ago. The consensus estimate of analysts was for a loss of 12 cents a share on revenue of $6.61 billion.
Shares added 11 cents, or 1.3%, to $8.75 in premarket trading.