New Bookings Reflect Customers' Growing Confidence Brought By Expansive Manufacturing Footprint, Robust Engineering Capabilities
Delphi's Electrical/Electronic Distribution Systems (E/EDS) business line totaled more than USD $5.2 billion in new-business bookings last year, with details of individual contracts remaining confidential at the customers' request.
Delphi compiled this new business with a diverse lineup of customers that included virtually every major vehicle manufacturer worldwide.
The win list also includes Tier II customers and those in non-automotive markets, including multiple applications in the marine industry and commercial vehicle segments. Products range from full vehicle wiring systems to advanced electrical center technology, among others in Delphi Packard's electrical/electronic (E/E) systems portfolio.
Douglas R. Gruber, Delphi Packard E/EDS business line executive, said the division's success in breaking the $5 billion mark in 2005 can be attributed to a number of factors, all of which are intrinsically linked to an enviable, long-running and far-reaching marketplace presence.
"The year we had in 2005 illustrates how customers continue to place their trust in our extensive E/E systems capabilities, which have been honed and showcased repeatedly for well over a century," Gruber said. "Experience counts when it comes to turning so many of these opportunities into wins, especially when that experience is based on many decades of leadership in providing customized support in E/E systems architecture design and network management.
"We have been able to strengthen these customer relationships, and in many cases begin new ones, because of the clear recognition manufacturers have for our ability to meet their complete E/E systems needs," Gruber said, "whether it's with differentiating systems optimization and development, or with component technology designed to offer value and performance advantages."
Delphi Packard President James A. Spencer noted that Delphi Packard's expansive global presence has been a longtime advantage for customers seeking comprehensive localized E/E systems support. The "think global, act local" approach is evident, Spencer said, in the way Delphi Packard continues to implement cross-regional manufacturing and logistic processes to improve efficiencies in a manner that enhances customer- and site-specific support of OEMs, and with engineering support that's almost literally just next door.
"Customers worldwide continue to place significant value in the benefits Delphi Packard provides through what we feel is an unrivaled level of support that's born from the combination of extensive localized assembly flexibility and dedicated in-region engineering and design resources," Spencer said. "We are very encouraged that their confidence in our capabilities continues to grow."
With a robust and ever-expanding E/EDS product portfolio and a strong penchant for managing growing vehicle complexity, Delphi Packard is well positioned to meet the changing needs in vehicle systems design and overall architecture development, Gruber noted, as automakers are increasingly looking to full-service suppliers capable of quickening the pace of differentiating technology implementation, and ultimately help bring greater value to their customers.
This press release, as well as other statements made by Delphi may contain forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, that reflect, when made, the Company's current views with respect to current events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company's operations and business environment which may cause the actual results of the Company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the Company to continue as a going concern; the ability of the Company to operate pursuant to the terms of the debtor-in-possession ("DIP") facility; the Company's ability to obtain court approval with respect to motions in the chapter 11 proceeding prosecuted by it from time to time; the ability of the Company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the chapter 11 cases; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, for the appointment of a chapter 11 trustee or to convert the cases to chapter 7 cases; the ability of the Company to obtain and maintain normal terms with vendors and service providers; the Company's ability to maintain contracts that are critical to its operations; the potential adverse impact of the chapter 11 cases on the Company's liquidity or results of operations; the ability of the Company to fund and execute its business plan; the ability of the Company to attract, motivate and/or retain key executives and associates; and the ability of the Company to attract and retain customers. Other risk factors are listed from time to time in the Company's United States Securities and Exchange Commission reports, including, but not limited to the Annual Report on Form 10-K for the year ended December 31, 2004 and its most recent quarterly report on Form 10-Q for the quarter ended September 30, 2005 and current reports on Form 8-K. Delphi disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise.
Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the Company's various pre-petition liabilities, common stock and/or other equity securities. Additionally, no assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies. A plan of reorganization could result in holders of Delphi's common stock receiving no distribution on account of their interest and cancellation of their interests. As described in the Company's public statements in response to the request submitted to the United States Trustee for the appointment of a statutory equity committee, holders of Delphi's common stock and other equity interests (such as options) should assume that they will not receive value as part of a plan of reorganization. In addition, under certain conditions specified in the Bankruptcy Code, a plan of reorganization may be confirmed notwithstanding its rejection by an impaired class of creditors or equity holders and notwithstanding the fact that equity holders do not receive or retain property on account of their equity interests under the plan. In light of the foregoing and as stated in its October 8, 2005 press release announcing the filing of its chapter 11 reorganization cases, the Company considers the value of the common stock to be highly speculative and cautions equity holders that the stock may ultimately be determined to have no value. Accordingly, the Company urges that appropriate caution be exercised with respect to existing and future investments in Delphi's common stock or other equity interests or any claims relating to prepetition liabilities.
CONTACT: Doug Hoy of Delphi Corporation, +1-330-373-7647,
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