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Visteon Corporation Earnings In Line With Guidance
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 Visteon Corporation announced a net loss of $52 million for the Third Quarter or $0.40 per share. Excluding a $17 million after-tax special charge for the European Plan for Growth, Visteon lost $35 million, or $0.27 a share - in line with guidance. The company posted year-over-year improvements in sales, earnings before special items, and cash flow.
In the Third Quarter of 2001, Visteon incurred a net loss of $95 million or $0.74 per share, including a $21 million after-tax restructuring charge. Excluding the restructuring charge, Visteon lost $74 million or $0.57 per share in the Third Quarter of 2001.
"We achieved significant year-over-year improvement in all areas," said Pete Pestillo, Chairman and Chief Executive Officer. "A major goal is customer diversification and more than 20 percent of our revenue came from customers other than Ford Motor Co. We expect improved earnings and margins in 2003, with a ramp-up of nearly half a billion dollars in new non-Ford business, which should allow us to exceed current analysts' consensus expectations."
For the first nine months of 2002, the company recorded a net loss of $318 million, or $2.48 per share, compared with a net loss of $104 million, or $0.80 per share, in the first nine months of 2001. Excluding charges related to previously disclosed restructuring actions and other charges, as well as the $265 million write-off of goodwill in the First Quarter, Visteon earned $38 million or $0.30 per share in the first nine months of 2002. This compares with net income of $17 million, or $0.13 per share, excluding previously announced special charges, in the same period a year ago.
Sales and Non-Ford Business Wins
Sales for the Third Quarter 2002 totaled $4.3 billion, up $622 million, or 17%, from the same period a year ago. Non-Ford sales were $898 million, up $181 million, or 25% from the Third Quarter 2001. Sales for the first nine months of 2002 totaled $13.9 billion, up $502 million, or 4%, from the same period a year ago.
For the first time in Visteon's history, quarterly sales to non-Ford customers totaled more than 20% of the company's revenue. Recent announceable new business wins include a second major systems contract with Nissan; air conditioning compressors for DaimlerChrysler; in-vehicle entertainment systems on the VW Sharan van; interior, electrical, chassis and climate systems on the Ford Fusion, a new sport-utility vehicle for the European market, and a partnership with BMW to supply a wireless interface module based on Bluetooth technology for in-car mobile phone integration.
So far this year, Visteon has won more than $900 million in net new business from more than a dozen global automakers in every region of the world. Virtually all of the wins were with customers other than Ford and more than one third were outside of North America.
Cash and Debt-to-Capital
During the Third Quarter of 2002, Visteon had an operating cash outflow of $174 million, reflecting normal seasonality during the summer shutdown period. The company ended the quarter with $1.0 billion in cash and marketable securities, and the company's debt-to-capital ratio was 37.5%.
Outlook
For the Fourth Quarter, Visteon projects sales of $4.6 billion and net income of $15 to $35 million. This excludes charges related to the European Plan for Growth and other actions under consideration, which will be announced at a later date. Operating cash flow during the quarter is estimated to be between $175 and $250 million.
Beginning in January 2003, Visteon intends to expense the fair market value of stock options granted to employees pursuant to SFAS No. 123. Current estimates indicate that expensing of options will reduce 2003 net income by about $5 million with the expense increasing to about $15 million or $0.12 per share over the next three years.
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 about 79,000 employees and a global delivery system of more than 180 technical, manufacturing, sales, and service facilities located in 25 countries.
This press release contains forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "estimate," "expect," and "projects" 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 these risks and uncertainties are identified in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 29, 2002. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on Visteon's business, financial condition and results of operations. We assume no obligation to update these forward-looking statements.
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October 29th, 2002
Photo: Visteon
Source: Northernlight Library |
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