Dearborn, Mich. (ots-PRNewswire) - Visteon Corporation (NYSE: VC),
today announced that Fourth Quarter earnings are anticipated to be
lower than analysts' expectations. Visteon is reducing its internal
estimate of earnings to about 35 cents per share, which includes a
previously announced gain for the sale of its interest in Conix.
This decline reflects primarily reductions in production announced
by Ford Motor Company.
(Photo: http://www.newscom.com/cgi-bin/prnh/20001201/DEF008LOGO )
In addition, Visteon will record a non-cash impairment write-down
of approximately $140 million after taxes ($1.08 per share) in the
Fourth Quarter to reduce the net book value of the assets associated
with the Glass Segment. The write-down reflects revised estimates of
the fair value of the assets following the end of discussions with
Pilkington plc. Continuing pressures on cost and prices in the
sector make it unlikely that Visteon will recover fully the recorded
value of assets associated with this business. Visteon remains
committed to finding solutions for the Glass Segment during the
The combined effect of the lower earnings estimate and the
non-cash impairment write-down will result in a net loss for the
Visteon is taking a number of aggressive actions to address the
softening of U.S. industry volumes. These include:
* A reduction in capital spending
* An immediate hiring freeze
* Eliminating most production overtime
* And substantial reductions in all discretionary spending.
"These actions can have an immediate effect on the bottom line,"
said Peter J. Pestillo, Chairman and CEO, Visteon Corporation. "In
addition, I've asked Mike Johnston, Visteon's President, to
undertake a 30-day functional review of worldwide operations with a
goal of reducing structure, eliminating redundancies and
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.
This press release contains forward-looking statements made
pursuant to the Private Securities Litigation Reform Act of 1995.
Words such as "estimated" and "potentially" signify forward-looking
statements. Forward- looking statements are not guarantees of future
results and conditions but rather are subject to various risks and
uncertainties, some of which are and will be identified as "Risk
Factors" in our SEC filings. See "Risk Factors" section of our
prospectus dated June 13, 2000 as filed with the SEC on June 14,
2000. Should any risks and uncertainties develop into actual events,
these developments could have material adverse effects on our
business, financial condition and results of operations.
ots Original Text Service: Visteon Corporation
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Web site: http://www.visteon.com Original-Content von: Visteon Corporation, übermittelt durch news aktuell