Delphi Completes Record Year for E/EDS Bookings By Earning More Than $8 Billion in Long-Term Contracts
WARREN, Ohio, Jan. 26, 2004 -- Strong bookings in all regions and balanced growth with a wide-ranging customer base helped carry Delphi Corporation's Electrical/Electronic Distribution (E/ED) Systems unit to a multi-billion dollar record-year performance for new business wins in 2003.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020315/DEF002LOGO )
Delphi finished the year with more than $8 billion in new E/ED systems business booked, with a customer list that included virtually every major vehicle manufacturer globally. New business was also won in various heavy- duty truck applications, and with other Tier 1 and Tier 2 suppliers. The total value of the contracts reflects customer volume expectations.
"This has been a year like no other in terms of competing for new vehicle program business. Our ability to turn so many of these quotes into contracts, and to continue earning our customers' trust, clearly illustrates the strong recognition they have of our ability to support their complete electrical architecture needs," said Paul Miller, Business Line Executive for Delphi Packard Electric's E/ED Systems business segment.
The contracts cover vehicle assembly operations beginning as early as this year and extending through 2012, with the majority of the business coming over a four-year period beginning in 2007. Delphi is supporting this new business with comprehensive local design development and engineering capability, realizing varying levels of vehicle optimization and integration and customizing E/ED systems that address vehicle complexity and meet customer needs.
"The variety of customers and vehicles supported with these wins, and their highly diverse and specified requirements, give great insight into the capability we have to provide highly-specified solutions that maximize value, technology and reliability, and do so in all regions."
Delphi Packard Electric has been able to strengthen its multi-regional presence because of a global footprint that allows for the benefits of improved delivery and manufacturing efficiencies brought by localized assembly operations, all of which continue their accelerated integration of the lean- focused Delphi Manufacturing System principles. These operations provide customers with options for meeting just-in-time and sequencing expectations.
"One of our greatest advantages is the ability to give the customer the unparalleled level of support you can only get with dedicated in-region engineering and design resources," Miller said. "Add to that the flexibility of our local assembly options that span the continent and you have a combination that produces tremendous responsiveness. Our customers value that, their confidence clearly reflected in the sheer volume of programs entrusted to Delphi Packard."
Delphi will continue to pursue growth opportunities in 2004 that further balance its E/ED systems business portfolio, Miller said, including a more accelerated approach to broadening its customer reach in the highly encouraging Asia Pacific market. Other growth avenues more aggressively addressed in 2004 include expanded penetration in other transportation industries, and potential non-traditional opportunities spurred by efficiency gains.
An example of the latter, Miller added, are the prospects of selling bulk primary and battery cable products to non-allied Tier 1 and Tier 2 cable users, a strategy most recently launched, and one that seeks to take advantage of capacity yielded by lean-driven improvement initiatives at strategic, highly advanced manufacturing operations.
Delphi Packard Electric is an expert in the design, development, optimization and integration of system solutions utilizing a full range of products and technologies, with engineering, manufacturing and sales support in all regions of the world. Delphi-developed crimp technology has become the industry standard, achieving world-class warranty for its connection systems. Delphi Packard Electric also offers a complete family of electrical center technologies, connection systems, switches, sensors and mechatronic devices.
For more information about Delphi Corporation and its operating groups, please visit Delphi's Virtual Press Room at www.delphi.com/vpr .
Forward Looking Statements
All statements contained or incorporated in this press release which address operating performance, events or developments that we expect or anticipate may occur in the future (including statements relating to future sales or earnings expectations, savings expected as a result of our global restructurings or other initiatives, portfolio restructuring plans, volume growth, awarded sales contracts and earnings per share expectations or statements expressing general optimism about future operating results) are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management's current views and assumptions with respect to future events. Important factors, risks and uncertainties which may cause actual results to differ from those expressed in our forward-looking statements are discussed in detail in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2001. In particular, the achievement of projected levels of revenue, earnings, cash flow and debt levels will depend on our ability to execute our portfolio and other global restructuring plans in a manner which satisfactorily addresses any resultant antitrust or labor issues and customer concerns, any contingent liabilities related to divestitures or integration costs associated with acquisitions, and other matters; the success of our efforts to diversify our customer base and still maintain existing GM business; the continued protection and exploitation of our intellectual property to develop new products and enter new markets; and our ability to capture expected benefits of our cost reduction initiatives so as to maintain flexibility to respond to adverse and cyclical changes in general economic conditions and in the automotive industry in each market we operate, including customer cost reduction initiatives, potential increases in warranty costs, pension contributions, healthcare costs, disruptions in the labor, commodities or transportation markets caused by terrorism or war and other changes in the political and regulatory environments where we do business. Delphi does not intend or assume any obligation to update any of these forward-looking statements.
Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20020315/DEF002LOGOPRN Photo Desk, photodesk@prnewswire.com
Company News On-Call: http://www.prnewswire.com/comp/076666.html