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Volume Reductions Impact Visteon's Fourth Quarter Earnings Estimate
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.
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 coming months.
The combined effect of the lower earnings estimate and the non-cash impairment write-down will result in a net loss for the Fourth Quarter.
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 streamlining processes."
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 Internet: http://recherche.newsaktuell.de
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