Delphi Reports $2.6 Billion First-Half Loss

DETROIT (AP) - Delphi Corp., the nation's largest auto supplier, said Tuesday it lost $2.6 billion in the first half of 2006, due largely to the cost of employee buyout and early retirement packages that are key to the company's bankruptcy reorganization. The loss was more than three times the $741 million that Delphi lost in the first half of 2005.

The company, which filed for Chapter 11 bankruptcy protection in October, said revenues increased slightly to $14.0 billion from $13.9 billion last year. Delphi, a former arm of General Motors Corp., reported progress in diversifying its sales, with non-GM revenue increasing 9 percent to $7.7 billion compared with $7.1 billion in the first half of 2005. The first-half loss included about $1.9 billion in charges related to buyouts and early retirements.

In a sign that Delphi and the United Auto Workers union may be approaching an agreement, Delphi asked the judge to postpone a hearing on its request to throw out the labor contracts. The hearing had been scheduled for last Friday and is now set for Thursday. GM is also part of the talks. Delphi is still GM's main supplier, and a strike there would be damaging to the automaker.

Delphi reported its first and second quarter results simultaneously. It had previously notified the Securities and Exchange Commission that its filings for the two quarters would be delayed.