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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Peter V who wrote (14600)	12/7/2000 5:13:48 PM
From: Peter V	Respond to of 18998

Mr. P$nk, I think I unwittingly forecast the answer to my question about VC, posed to you on December 4. Visteon shares fall 23% on warning By Barbara C. Costanza, CBS.MarketWatch.com Last Update: 5:10 PM ET Dec 6, 2000 Newswatch Latest Headlines Get Alerted DEARBORN, Mich., (CBS.MW) -- Visteon shares closed down 23 percent Wednesday after the company warned of a fourth-quarter profit shortfall because of production cuts at Ford Motor Co. Excluding a one-time gain of 16 cents a share from the sale of Conix, the auto parts company (VC: news, msgs) anticipates profit from operations of 19 cents a share, well below the consensus analyst estimate on Wall Street of a 66-cent, per-share profit, according to First Call. Including the gain, the company expects a profit of 35 cents a share. Last year, the company earned 84 cents a share in the fourth quarter. Visteon blamed the shortfall on production cuts at Ford Motor Co. (F: news, msgs) . The company will also take a charge of $140 million, or $1.08 a share, to write down assets associated with the company's glass unit. As a result of these factors, the company said it will report a net loss for the quarter. The factors also prompted Visteon to halt hiring, reduce capital spending, "substantially" reduce discretionary spending and eliminate most production overtime. Kenneth A. Blaschke, an analyst at Deutsche Banc Alex Brown, cut his fourth-quarter and full-year earnings shortly after the warning. The fourth-quarter estimate was cut to 34 cents a share from 42 cents a share and the full-year estimate was cut by 10 cents to $2.60 a share. Goldman Sachs analyst Gary Lapidus downgraded Visteon to "market performer" and removed the shares from its "US recommended for purchase list." He also lowered his 2000 earnings per share estimate to $2.77 from $3.08, and 2001 estimate to $2.00 from $3.10. Shares closed down $3.38 to $11.06 www2.marketwatch.com