Delphi amends deal amid $20m loss
By Rob Freeman | 7th May 2020
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.
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