Visteon Issues Earnings Warning
biz.yahoo.com
DEARBORN, Mich. (AP) -- Visteon Corp. [NYSE:VC - news] said Tuesday it expects fourth-quarter earnings to fall far short of analysts' expectations because of cuts by its largest customer and former owner, Ford Motor Co.
After stock markets closed, the auto parts maker said it was reducing its earnings estimate to about 35 cents per share, excluding a writedown of about $140 million after taxes, or $1.08 per share, to reduce the book value assets in its glass segment.
Analysts had forecast fourth-quarter earnings of about 63 cents a share, according a survey by First Call/Thomson Financial. Visteon earned 84 cents a share in the fourth quarter of 1999.
The combined effect of the lower earnings estimate and the glass segment writedown will result in a net loss for the quarter, Visteon said.
Visteon said it was taking immediate steps to respond to the sales slowdown. They include a reduction in capital spending, a hiring freeze, elimination of most production overtime and cuts in discretionary spending.
``These actions can have an immediate effect on the bottom line,'' said chairman and chief executive Peter J. Pestillo.
Before the earnings warning, shares of Visteon fell 50 cents, or 3 percent, to close Tuesday at $14.44 on the New York Stock Exchange.
Visteon has about 81,000 employees in 130 countries. It had revenues of $19.4 billion and earnings of $735 million in 1999, making it the second largest auto parts maker in the world, behind Delphi Automotive Systems and ahead of the auto parts division of Robert Bosch GmbH of Germany.
Facing a similar problem, Delphi said Friday it would temporarily lay off 1,700 workers in three states in response to reduced auto production |
