The company recorded special charges in both periods.
During the First Quarter 2003, Visteon incurred special charges of $31 million before taxes associated primarily with restructuring actions at its North American manufacturing plants and the continued implementation of the European Plan for Growth. In total, these special charges reduced net income by $20 million or $0.16 per share during the quarter.
During the First Quarter 2002, Visteon implemented a number of restructuring actions and incurred pre-tax special charges of $116 million ($74 million after tax). In addition, the company recorded a non-cash write- off for the value of goodwill reflected in its financial statements of $265 million after tax associated with adoption of Statement of Financial Accounting Standards No. 142. Combined, these special items reduced net income by $339 million or $2.64 per share.
"During the First Quarter we continued to make progress toward improving Visteon's competitive position," said Peter J. Pestillo, Visteon Chairman and Chief Executive Officer. "We announced a cooperative agreement to exit the seating business and continued to make progress on implementation of the European Plan for Growth, both of which are expected to generate substantial savings going forward. Our sales diversification also continues to help our results as non-Ford sales remained above 20% of our total sales."
Sales and Non-Ford Business Wins
First Quarter 2003 sales totaled $4.7 billion, compared with $4.5 billion in the First Quarter 2002. The increase, compared with a year ago, reflects primarily growth in non-Ford revenue and the favorable impact of exchange rates. Non-Ford sales during the First Quarter 2003 totaled $983 million, an increase of $160 million, or 19%, when compared with First Quarter 2002, and represented 21% of total sales.
Visteon won nearly $200 million of non-Ford business during the quarter and remains committed to winning $1 billion of net, new business during 2003. Nearly half of the First Quarter wins were for business outside of North America.