No timetable for Delphi IPO
DETROIT (Reuters) - Privately held auto parts supplier Delphi Corp, which emerged from a four-year bankruptcy in October, has no timetable yet for an initial public offering, Chief Executive Rodney O'Neal said on Wednesday.
"Our management team is just focused on the top line and the bottom line of the company and creating value. The market itself and our owners will dictate when that event occurs," O'Neal told Reuters on the sidelines of the Automotive News World Congress.
North America's third-largest auto parts supplier slashed 90,000 workers and divested numerous business lines to focus on safety equipment, green technology and vehicle connectivity through the bankruptcy.
With the company out of bankruptcy, Delphi is interested in acquisitions "for strategic reasons primarily around technologies and jobs we might have in our portfolio, but not just for the sake of top line (growth)," he said.
O'Neal said the Delphi portfolio is now "very solid" when asked whether the parts maker would divest more businesses.
"As always, you always do a constant evaluation of where you are and where you want to go," he said. "Nothing is static."
Delphi is currently evaluating its business in Europe, where it has excess capacity it plans to cut, O'Neal said.
"We have some right-sizing to do in Europe," O'Neal said. "When we finish what we have laid out we will be at the right size."
O'Neal said Delphi expects revenue to increase by about 40 percent to the $14 billion to $15 billion range by 2012.
"We are going to have significant improvement in '09 to 2010 in terms of positive cash flow and earning power of the company," he said.
The former parts unit that GM spun off in 1999, Delphi has slashed thousands of jobs and divested numerous businesses in the reorganization.
(Reporting by David Bailey and Arno Schuetze, editing by Matthew Lewis)