Delphi Reports Third Quarter 2005 Financial Results

TROY, Mich., Nov. 9, 2005 -- Delphi Corp. today reported third quarter financial results for the period ended Sept. 30, 2005.

* Revenue of $6.28 billion, down from $6.64 billion in Q3 2004.

* Non-GM revenue for the quarter was $3.33 billion, up 6 percent from $3.15 billion in Q3 2004 (up 5 percent, excluding the effects of foreign exchange rates), representing 53 percent of Q3 revenues. Non-GM growth was more than offset by a 16 percent year-over-year decline in GM revenues.

* GAAP net loss of $788 million or a loss of $1.40 per share, compared to Q3 2004 net loss of $119 million or a loss of $0.21 per share. Included in the Q3 2005 net loss was $136 million of accrued contract costs of idled employees who were previously expected to either return to active service or depart through retirement or flowback to GM. In addition, the results include $85 million of costs related to idled employees incurred in the third quarter.

* GAAP cash used in operations was $833 million, compared to GAAP cash provided by operations of $238 million in Q3 2004. Cash used in operations was negatively impacted by shorter supplier payment terms, principally in the U.S.

"The sizeable loss in this quarter only underscores the urgent need to address our U.S. labor cost issues," said Robert S. "Steve" Miller, Delphi's chairman and CEO. "Delphi can not continue indefinitely to operate our facilities in the U.S., which lose a substantial amount of money, without being able to adjust our cost structure. The continued pressures Delphi faces from low GMNA production volumes, commodity price increases, pension and post retirement health care cost increases, along with the cost of paying for idled workers, will only intensify our U.S. losses until we come up with a competitive, sustainable plan of reorganization for our U.S. operations through the Chapter 11 process."

Additional information concerning Delphi's Q3 2005 results is available in Delphi's third quarter Form 10-Q, scheduled to be filed with the Securities and Exchange Commission later today. More information on Delphi's U.S. Chapter 11 business reorganization filing is available at http://www.delphidocket.com/ .