Delphi continues strong cash generation in 4Q

Delphi Corp. today reported increased operating cash flow year-over-year for the fourth quarter of 2003, bringing calendar year 2003 operating cash flow to $1.22 billion as the company continued to execute its restructuring plans and expand its non-GM revenues to 42% of Q4 2003 sales. The company generated operating cash flow of $547 million for the quarter, up 21% year-over-year from Q4 2002. Delphi's Q4 2003 revenue was $7.26 billion, up 4.1% from Q4 2002, including revenues realized as a result of Delphi's acquisition of Grundig Car Intermedia System GmbH (Grundig) in November 2003. GAAP net income for the quarter was $82 million, which included the impact of $46 million in previously anticipated charges related to restructuring initiatives announced in October 2003. Excluding these costs, Q4 net income was $128 million, or $0.23 per share, at the high end of the prior guidance range of $110 to $130 million. Thomson First Call consensus was $0.21 for the period. "Our strategy continues to focus on strong operating cash flow through growth in our non-GM revenues, which were up 16 percent for the calendar year, as well as our focus on operational efficiencies and aggressive structural cost reduction efforts," said J.T. Battenberg III, Delphi's chairman, CEO and president. "Delphi is utilizing operating cash flow to reduce legacy liabilities, strengthen our balance sheet, optimize our global footprint and pay dividends. At the same time, we maintained our strong focus on developing game-changing technologies, creating value for Delphi's investors."