Skip navigation

Gloucestershire Business News

Delphi amends deal amid $20m loss

Delphi Technologies has reported an operating loss of $20million across the opening quarter of 2020.

And the firm, which has a base in Stonehouse, says it has ironed out an issue surrounding its agreed acquisition by BorgWarner.

The $20million loss compared to an operating income of $55million in the same period last year with an adjusted operating income of $40 million down from $87million the previous year.

Revenue fell by 18 per cent to $945million with the decline attributed primarily to lower global production, the closure of production sites due to the coronavirus and the downward trend in passenger car diesel fuel injection systems in Europe.

Cashflow from operating activities rose from $21million to $31million.

Chief executive Richard F Dauch said: "In the face of unprecedented uncertainty and a significant decline in global production, I am pleased with our strong revenue outgrowth and cashflow performance.

"During the COVID-19 pandemic, our focus has and continues to be on the safety of our people, customers and suppliers and on adhering to government directives, while taking the necessary actions to navigate the significant shorter-term impacts to our industry.

"Our restructuring initiatives and footprint consolidation plans are ahead of schedule, allowing us to accelerate our cost savings and preserve cash."

He continued: "We are pleased to be proceeding with the transaction with BorgWarner which we continue to believe delivers clear benefits to all Delphi Technologies stakeholders, particularly in light of the current market and macroeconomic environment.

"The combination will create a company uniquely equipped to serve both OEM and aftermarket customers.

"Together we will be able to address market trends toward electrification while satisfying the ongoing demand for clean, efficient, combustion technologies."

The agreement with BorgWarner amends stems of the transaction agreement which was agreed in January.

BorgWarner had argued that Delphi had breached the agreement by drawing on its credit facility but the two boards have agreed the transaction.

The company provides combustion systems, electrification products, software and controls in the passenger and commercial vehicle markets.

Related Articles

Coronavirus LIVE Updates: The latest news from across Gloucestershire on Friday, August 7 Image

Coronavirus LIVE Updates: The latest news from across Gloucestershire on Friday, August 7

The latest important news and updates from across Gloucestershire as the coronavirus crisis continues.

Jigsaw could be next missing piece on Cheltenham Promenade Image

Jigsaw could be next missing piece on Cheltenham Promenade

Cheltenham's beleaguered Promenade could be facing another blow with fashion retailer Jigsaw close to launching a CVA.

City traders frustrated by surprise street market  Image

City traders frustrated by surprise street market

Food from around the world has taken over the Gate Streets in Gloucester - much to the surprise of some of its usual inhabitants who say they are losing out to the visiting competition.

On-street parking charge increase planned for September Image

On-street parking charge increase planned for September

The council has now revealed that the three per cent increase will take place from next month.

Copyright 2020 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.