Delphi‘sUSpension expenses will likely increase in 2003 from levels of about $270 million this year. Given current market conditions, the increase could be close to $200 million.
According to the release, a low level of benefits-eligible retirees and an average retirement period of only 12 to 15 years have contributed to a low cash outflow from the plan. This, in combination with a strong operating cash flow, provides flexibility for future funding requirements.
Delphi also stated that its previously announced restructuring plan is 90% complete. The third quarter saw 1,050 jobs reduced as part of the 2002 plan that called for an estimated loss of 6,100 jobs through consolidation.