18.07.2000 – 13:50
Visteon Corporation Reports Second Quarter Earnings of $162 Million
Dearborn, Mich. (ots-PRNewswire) - Visteon Corporation (NYSE: VC), the world's second largest automotive supplier, announced today that it earned $162 million during the second quarter of 2000, compared with record second quarter earnings of $280 million a year ago. The reduction in earnings was accounted for by a one-time price realignment of 5 percent that resulted from a joint Ford-Visteon competitive pricing study.
Adjusting 1999 for the effects of the price realignment and other independence-related costs, Second Quarter 2000 earnings would have been down $8 million versus 1999 on a pro forma basis. This year's results included a one-time charge of $8 million connected with employee separation programs.
Second quarter revenue was $5.3 billion in 2000, up 5 percent compared with 1999, and the after-tax return on sales was 3.2 percent.
Combined with strong First Quarter 2000 results, net income for the first half 2000 totaled $309 million. Revenue for the first six months was $10.5 billion and after-tax return on sales was 3.0 percent.
"We are encouraged by these results -- our second quarter builds on a strong first quarter adding up to more than $500 million in profit before taxes," said Visteon Corporation Chairman, CEO and President Peter J. Pestillo. "Our operating improvements in the second quarter show that we are positioned well to meet our objectives for the year and deliver good shareholder value."
In addition to Visteon's independence, there have been several highlights during the second quarter 2000:
* Visteon signed a letter of intent with Pilkington plc, one of the world's leading glass manufacturers to form a new glass company. Pilkington will assume management responsibility and provide technology leadership for the new company. Visteon is working with Pilkington to finalize the transaction, with completion targeted by the end of the year.
* Visteon continues to deliver on its commitment to secure new business in 2000. Through the first half of 2000, Visteon has booked $1.6 billion in new business. More than 33 percent of the new business contracts won in the first half of 2000 were with non-Ford customers and 28 percent were with customers outside of North America. Of that new business, more than $500 million is in multimedia and telematics, an area that offers Visteon significant opportunities for future growth.
* Visteon has formed an affiliation with Samsung Electronics, Co., Ltd., to develop fully integrated high-quality telematics products. The association between the two companies will allow Visteon to incorporate Samsung's CDMA Voice and Data Module into a variety of Visteon telematics products for the 2002 automotive model year and beyond.
* Visteon has joined forces with Sirius Satellite Radio to develop innovative products that would combine Visteon's multimedia expertise with Sirius' 100-channel audio entertainment service.
* Visteon will work with PSA Peugeot-Citroen to develop a next generation climate control system. The two-year program will enable the two companies to develop a system aimed at improving passenger comfort and optimizing in-vehicle global thermal systems management.
* Visteon has announced a $62 million investment in its Alba Plant in Hungary to provide state-of-the-art technology for the production of compressors, which will be supplied to the corporation's growing European customer base.
* Visteon was recognized recently by industry leaders for its excellence in design and technology at the Fifth Annual Design and Technology awards, sponsored by Auto Interiors magazine. In all, Visteon received five awards for such technologies as ICES, Superintegration(TM), RPID(TM), Visteon Voice Technology(TM), and Visteon Laminate Insert Molding (VLIM(TM)).
Visteon Corporation is a leading full-service supplier that delivers consumer-driven technology solutions to automotive manufacturers worldwide and through multiple channels within the global automotive aftermarket. Visteon has a global delivery system of more than 130 technical, manufacturing, sales, and service facilities located in 23 countries. It has 81,000 employees working in three business segments: Dynamics and Energy Conversion; Comfort, Communication and Safety; and Glass.
Visteon news releases, photographs and product specification details are available at www.visteon.com
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Web site: http://www.visteon.com
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