Highlights: * 2005 net loss narrows; cash flow improves *
Multi-year action plan for year-over-year improvements through 2008
and beyond * Customer diversification continues VAN BUREN TOWNSHIP,
Mich., Feb. 10 /PRNewswire-FirstCall/ -- Visteon Corporation
(NYSE:VC) today announced fourth-quarter and full-year results for
2005. For the fourth quarter of 2005, Visteon reported net income
of $1.338 billion, or $10.25 per diluted share, on total sales of
$2.9 billion. For full year 2005, Visteon reported a net loss of
$270 million, or $2.14 per share, on total sales of $17.0 billion.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001201/DEF008LOGO )
"With the Ford transaction completed, we are now focused on
implementing our multi-year plan to restructure Visteon and improve
our earnings and free cash flow," said Michael F. Johnston,
chairman and chief executive officer. "We are looking at every
opportunity to accelerate our actions to achieve continued
year-over-year improvements. For 2006, we are increasing our
outlook for earnings and reaffirming our outlook for positive free
cash flow. We are also reiterating our expectation for continued
improvement in 2007 and beyond." Fourth Quarter 2005 For the fourth
quarter of 2005, product sales were $2.7 billion and services
revenues were $164 million. More than 50 percent of total product
sales were generated from customers other than Ford, a significant
increase over prior year. Sales for the same period a year ago
totaled $4.7 billion, of which non-Ford sales were 33 percent.
Product sales were lower primarily due to the sale of 23 North
American facilities on Oct. 1, 2005, as part of the Automotive
Components Holdings, LLC (ACH) transactions, lower production
volumes by Ford in North America and price reductions to customers.
Services revenues of $164 million represent billings for employee
and related costs for business support activities provided to ACH
under terms of various agreements between Visteon and ACH that took
effect Oct. 1, 2005. Visteon's net income of $1.338 billion for the
fourth quarter of 2005 included a gain of $1.8 billion related to
the ACH transactions, and non-cash asset impairment charges of $335
million related to product lines manufactured principally at plants
in the United States and the United Kingdom. These manufacturing
operations are addressed by Visteon's multi-year restructuring
program. This impairment charge is expected to decrease
depreciation and amortization expense by approximately $25 million
annually. Visteon also incurred $28 million of restructuring
expenses in the quarter related to various personnel and other
cost-reduction actions. Reimbursements from the restructuring
escrow account for qualified expenses incurred by Visteon in both
the fourth quarter and prior quarters of 2005 totaled $51 million.
For the fourth quarter of 2004, Visteon reported a net loss of $138
million, which included restructuring expenses of $41 million. Cash
provided by operating activities was $42 million for the fourth
quarter of 2005, down about $150 million from the same period a
year ago, as favorable performance in trade working capital was
offset by an estimated $300 million net working capital run-off
associated with retained receivables and payables of the business
that transferred as part of the ACH transactions. Capital
expenditures for the quarter of $185 million were $73 million lower
than fourth quarter 2004. Free cash flow was negative $143 million
in the fourth quarter 2005, compared with negative $63 million in
the same period of 2004. Full Year 2005 Sales for full year 2005
totaled $17.0 billion, including product sales of $16.8 billion and
services revenues of $164 million. Of the product sales, 62 percent
were Ford-related with 38 percent from other customers. Sales for
the same period a year ago totaled $18.7 billion, of which
Ford-related sales were 70 percent and sales from other customers
were 30 percent. Sales were lower primarily due to the sale of 23
North American facilities on Oct. 1, 2005 as part of the ACH
transactions, lower production volumes by Ford in North America and
price reductions to customers. 2005 results include the operations
of the businesses and facilities that were sold as part of the ACH
transactions for the nine months for which they were owned by
Visteon. Sales generated by these former facilities as reported in
Visteon's 2005 results were nearly $6.1 billion, including $611
million of sales to customers other than Ford. For 2004, these
former facilities accounted for nearly $9.0 billion of sales,
including $677 million of sales to customers other than Ford.
Visteon's net loss of $270 million for the full year 2005
represents an improvement over 2004's net loss of $1.5 billion. The
results for 2005 include the fourth quarter non-cash charges
discussed above, the gain on the ACH transactions, as well as
previously announced non-cash asset impairment charges of about
$1.2 billion and $46 million of restructuring expenses, partially
offset by $51 million of reimbursements from the restructuring
escrow account. For 2004, Visteon's net loss included restructuring
expenses of $82 million, non-cash asset impairment charges of $314
million and a non- cash charge of $871 million related to deferred
tax assets. Cash provided by operating activities was $417 million
for full year 2005, about the same as 2004 full-year results. Free
cash flow for full year 2005 was negative $168 million compared
with a negative $409 million for full year 2004. Capital
expenditures for the year of $585 million were $242 million lower
than for the full year 2004. Cash and Debt As of Dec. 31, 2005,
Visteon had cash of $865 million, an improvement over 2004's $752
million. Visteon's 2005 debt position also improved, with total
borrowings of $1.994 billion as of Dec. 31, 2005, compared with
total borrowings of $2.021 billion at the end of 2004. On Jan. 9,
2006, Visteon closed on a new 18-month secured term loan of $350
million. The new loan expires on June 20, 2007, and replaced
Visteon's $300 million secured short-term revolving credit facility
that expired on Dec. 15, 2005. The term loan was made part of
Visteon's existing $772 million five-year facility agreement. The
terms and conditions of the agreement were also modified to align
various covenants with Visteon's restructuring initiatives and to
make changes to the consolidated leverage ratios. Visteon also
amended its $241 million delayed draw term loan agreement, which
also expires in June 2007, to reflect substantially the same terms
and conditions. Outlook Visteon is raising its estimate for 2006
full-year earnings before net interest expense and the provision
for income taxes, excluding net unreimbursed restructuring expenses
and non-cash asset impairments (EBIT-R) to a range of $45 million
to $75 million, reflecting reduced depreciation and amortization
expense estimates. Additionally, Visteon expects to generate about
$50 million of free cash flow and expects 2006 full-year product
sales of approximately $11.2 billion, with 58 percent coming from
non-Ford sales. "Visteon is a global leader in our core product
areas of climate, interior and electronic systems, with the global
reach and diverse customer mix to continue delivering
year-over-year improvements," Johnston said. "We have established a
sustainable business model and solid action plans to strengthen our
results and create value for our customers, employees and
shareholders." Forward-looking Information This press release
contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward- looking
statements are not guarantees of future results and conditions but
rather are subject to various factors, risks and uncertainties that
could cause our actual results to differ materially from those
expressed in these forward-looking statements, including general
economic conditions, including changes in interests rates and fuel
prices; the automotive vehicle production volumes and schedules of
our customers, and in particular Ford's vehicle production volumes;
our ability to satisfy our future capital and liquidity
requirements and comply with the terms of our existing credit
agreements and indentures; the financial distress of our suppliers
and possible disruptions in the supply of commodities; our ability
to implement, and realize the anticipated benefits of,
restructuring and other cost-reduction initiatives and our
successful execution of internal performance plans and other
productivity efforts; the timing and expenses related to
restructurings, employee reductions, acquisitions or dispositions;
increases in raw material and energy costs and our ability to
offset or recover significant material surcharges; the effect of
pension and other post-employment benefit obligations; increases in
our warranty, product liability and recall costs; the outcome of
legal or regulatory proceedings to which we are or may become a
party; as well as those factors identified in our filings with the
SEC (including our Quarterly Report on Form 10-Q for the quarterly
period ended September 30, 2005). We assume no obligation to update
these forward-looking statements. Use of Non-GAAP Financial
Information This press release contains information about Visteon's
financial results which is not presented in accordance with
accounting principles generally accepted in the United States
("GAAP"). Such non-GAAP financial measures are reconciled to their
closest GAAP financial measures at the end of this press release.
The provision of these comparable GAAP financial measures for 2006
is not intended to indicate that Visteon is explicitly or
implicitly providing projections on those GAAP financial measures,
and actual results for such measures are likely to vary from those
presented. The reconciliations include all information reasonably
available to the company at the date of this press release and the
adjustments that management can reasonably predict. Visteon
Corporation is a leading global automotive supplier that designs,
engineers and manufactures innovative climate, interior, electronic
and lighting products for vehicle manufacturers, and also provides
a range of products and services to aftermarket customers. With
corporate offices in Van Buren Township, Mich. (U.S.); Shanghai,
China; and Kerpen, Germany; the company has more than 170
facilities in 24 countries and employs approximately 50,000 people.
VISTEON CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS (Dollars in millions, except share and per share data)
(Unaudited) Three Months Ended Year Ended December 31, December 31,
2005 2004 2005 2004 Net sales Product $2,701 $4,679 $16,812 $18,657
Services 164 - 164 - 2,865 4,679 16,976 18,657 Cost of sales
Product 2,638 4,521 16,259 17,769 Services 163 - 163 - 2,801 4,521
16,422 17,769 Gross margin 64 158 554 888 Selling, general and
administrative expenses 183 252 946 980 Restructuring expenses 28
41 46 82 Reimbursement from Escrow Account 51 - 51 - Impairment of
long-lived assets 335 - 1,511 314 Gain on ACH transactions 1,832 -
1,832 - Operating income (loss) 1,401 (135) (66) (488) Interest
expense, net 34 24 132 96 Equity in net income of non-consolidated
affiliates 3 7 25 45 Income (loss) before income taxes and minority
interests in consolidated subsidiaries 1,370 (152) (173) (539)
Provision (benefit) for income taxes 23 (21) 64 962 Minority
interests in consolidated subsidiaries 9 7 33 35 Net income (loss)
$1,338 $(138) $(270) $(1,536) Basic and diluted income (loss) per
common share: Basic income (loss) per share $10.58 $(1.10) $(2.14)
$(12.26) Basic average shares outstanding (millions) 126.5 125.3
126.0 125.3 Diluted income (loss) per share $10.25 $(1.10) $(2.14)
$(12.26) Diluted average shares outstanding (millions) 130.6 125.3
126.0 125.3 Cash dividends per share $ - $0.06 $ - $0.24 VISTEON
CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars
in millions) December 31, Unaudited 2005 2004 ASSETS Cash and cash
equivalents $865 $752 Accounts receivable, net Ford Motor Company
618 1,255 Non-Ford Motor Company 1,120 1,285 Inventories, net 537
889 Prepaid expenses and other current assets 205 249 Total current
assets 3,345 4,430 Property, plant and equipment, net 2,973 5,303
Other assets 418 559 Total assets $6,736 $10,292 LIABILITIES AND
SHAREHOLDERS' (DEFICIT) / EQUITY Short-term debt, including current
portion of long-term debt $485 $508 Accounts payable 1,803 2,493
Employee benefits, including pensions 233 341 Accrued expenses and
other current liabilities 438 580 Total current liabilities 2,959
3,922 Long-term debt 1,509 1,513 Postretirement benefits other than
pensions 724 639 Postretirement benefits payable to Ford Motor
Company 154 2,135 Employee benefits, including pensions 647 751
Deferred income taxes 175 287 Other liabilities 382 516 Minority
interests in consolidated subsidiaries 234 209 Shareholders'
(deficit) / equity Preferred stock (par value $1.00, 50 million
shares authorized, none outstanding) - - Common stock (par value
$1.00, 500 million shares authorized, 131 million shares issued,
129 million and 130 million shares outstanding, respectively) 131
131 Stock warrants 127 - Capital in excess of par value of stock
3,394 3,380 Accumulated other comprehensive income (loss) (232) 5
Other (28) (26) Accumulated deficit (3,440) (3,170) Total
shareholders' (deficit) / equity (48) 320 Total liabilities and
shareholders' (deficit) / equity $6,736 $10,292 VISTEON CORPORATION
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in
millions) (Unaudited) Three Months Ended Year Ended December 31,
December 31, 2005 2004 2005 2004 Cash provided from (used by)
operating activities Net income (loss) $1,338 $(138) $(270)
$(1,536) Adjustments to reconcile net income (loss) to net cash
provided from operating activities: Gain on ACH transactions
(1,832) - (1,832) - Depreciation and amortization 122 171 595 685
Impairment of long-lived assets 335 - 1,511 314 Equity in net
income of non-consolidated affiliates, net of dividends remitted 12
(6) 23 (2) Other non-cash items 15 12 44 40 Changes in assets and
liabilities: Accounts receivable 577 258 684 (52) Inventories 33
125 34 3 Accounts payable (579) (74) (593) 82 Postretirement
benefits other than pensions 8 33 227 180 Income taxes deferred and
payable, net 1 (42) (40) 869 Other assets and other liabilities 12
(144) 34 (165) Net cash provided from operating activities 42 195
417 418 Cash provided from (used by) investing activities Capital
expenditures (185) (258) (585) (827) Acquisitions and investments
in joint ventures, net (1) - (21) - Net cash proceeds from ACH
transactions (12) - 299 - Sales and maturities of securities - 8 -
11 Other, including proceeds from asset disposals 37 16 76 34 Net
cash used by investing activities (161) (234) (231) (782) Cash
provided from (used by) financing activities Commercial paper
repayments, net - (50) - (81) Other short-term debt, net 48 10 239
(20) Proceeds from issuance of other debt, net of issuance costs 10
28 50 576 Maturity/repurchase of unsecured debt securities - -
(250) (269) Principal payments on other debt (30) - (69) (32)
Treasury stock activity - - (2) (11) Cash dividends - (7) - (31)
Other, including book overdrafts 57 51 (19) 3 Net cash provided
from (used by) financing activities 85 32 (51) 135 Effect of
exchange rate changes on cash 1 30 (22) 28 Net (decrease) increase
in cash and cash equivalents (33) 23 113 (201) Cash and cash
equivalents at beginning of period 898 729 752 953 Cash and cash
equivalents at end of year $865 $752 $865 $752 VISTEON CORPORATION
AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in millions) (Unaudited) In this press release the Company
has provided information regarding certain non-GAAP financial
measures including "free cash flow" and "EBIT-R." Such non-GAAP
financial measures are reconciled to their closest US GAAP
financial measure in the schedules below. EBIT-R: EBIT-R represents
net income (loss) before net interest expense and provision for
income taxes and excludes impairment and net unreimbursed
restructuring charges as well as the gain on the ACH transactions.
Management believes EBIT-R is useful to investors because it
provides meaningful supplemental information regarding the
Company's operating results because the excluded items may vary
significantly in timing or amounts and/or may obscure trends useful
in evaluating and comparing the Company's continuing operating
activities. Three Months Ended Year Ended 2006 December 31,
December 31, Estimate 2005 2004 2005 2004 Net Income (Loss) $1,338
$(138) $(270) $(1,536) $(250) - $(220) Interest expense, net 34 24
132 96 160 Provision (benefit) for income taxes 23 (21) 64 962 105
Impairment of long-lived assets 335 - 1,511 314 30 Net unreimbursed
restructuring expense - 41 7 82 - Gain on ACH transactions (1,832)
- (1,832) - - EBIT-R $(102) $(94) $(388) $(82) $45 - $75 EBIT-R is
not a recognized term under GAAP and does not purport to be an
alternative to net income (loss) as an indicator of operating
performance or to cash flows from operating activities as a measure
of liquidity. Because not all companies use identical calculations,
this presentation of EBIT-R may not be comparable to other
similarly titled measures of other companies. Additionally, EBIT-R
is not intended to be a measure of free cash flow for management's
discretionary use, as it does not consider certain cash
requirements such as interest payments, tax payments and debt
service requirements. Free Cash Flow: Free cash flow represents
cash flow from operating activities less capital expenditures.
Management believes that free cash flow is useful in analyzing the
Company's ability to service and repay its debt and it uses the
measure for planning and forecasting in future periods, as well as
in management compensation decisions. Three Months Ended Year Ended
2006 December 31, December 31, Estimate 2005 2004 2005 2004 Cash
provided from operating activities $42 $195 $417 $418 $500 Capital
expenditures (185) (258) (585) (827) (450) Free cash flow $(143)
$(63) $(168) $(409) $50 Free cash flow is not a recognized term
under GAAP and does not reflect cash used to service debt and does
not reflect funds available for investment or other discretionary
uses. First Call Analyst: FCMN Contact:
http://www.newscom.com/cgi-bin/prnh/20001201/DEF008LOGO DATASOURCE:
Visteon Corporation CONTACT: Media Inquiries: Jim Fisher,
+1-734-710-5557, mobile: +1-734-417-6184, , or Investor Inquiries:
Derek Fiebig, +1-734-710-5800, , both of Visteon Corporation Web
site: http://www.visteon.com/
Copyright
Visteon (NASDAQ:VC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Visteon (NASDAQ:VC)
Historical Stock Chart
From Jul 2023 to Jul 2024