The lower expenses offset a steep drop in sales partially stemming from a drop in production at former Delphi parent General Motors Corp. Revenue fell 31 percent to $5.2 billion from $6 billion a year earlier.

Troy-based Delphi said GM North America production fell 28 percent during the quarter, partially as a result of a strike at key supplier American Axle & Manufacturing Holdings Inc.

In addition, Delphi said it's in the process of selling noncore businesses that primarily supply the Detroit-based automaker's North American production.

Sales to GM North America represented 19 percent of Delphi's total revenue during the quarter, down from 31 percent in the second quarter of 2007.

Non-GM revenue was unchanged at $3.8 billion and represented 72 percent of second-quarter revenue, compared with 63 percent in the prior-year period.

In addition to the lower sales, Delphi said the recent quarter's results included a goodwill impairment charge and a loss on extinguished debt as a result of refinancing its debtor-in-possession credit facility.

Earlier this week, Delphi said in a court filing that GM has agreed to lend it an additional $300 million to help it emerge from bankruptcy protection.

Delphi said in a filing Wednesday in U.S. Bankruptcy Court in New York that pending court approval, GM would increase its loan to the parts supplier to $950 million from $650 million so Delphi can maintain a minimum level of liquidity.

Delphi has been operating under Chapter 11 bankruptcy protection since October 2005.