Delphi Sees Slight Rise In Capital Expenditure In 2003; Plans Large Pension Payout.

Delphi Corp. said it expects capital expenditures of $1.1 billion for 2003, compared with $1.035 billion in 2002, according to the company's annual report filed with the Securities and Exchange Commission.

The company said it expects half of its 2003 capital expenditures to be outside the U.S. Delphi also said it expects to use operating cash flow and some of its debt capacity to undertake shareholder-value-enhancing activities. These could include strategic acquisitions that would build on its strengths and expand its market coverage in traditional automotive and non-automotive markets, and a share repurchase program, the filing said.

Elsewhere in the filing, Delphi said it contributed $350 million to its pension plan in January and plans to contribute an additional $250 million later this year for a total of $600 million in 2003. Delphi's U.S. pension expense was $293 million in 2002, the filing said.

For 2003, it said it expects pension expenses to exceed those of 2002 by about $200 million. The company said it believes if it makes $600 million in contributions in 2003, it would be required by employee benefit and tax laws to make contributions of $500 million in 2004 and $1 billion in 2005.