Visteon Provides Preliminary 2008 Financial Data and Updates Restructuring and Other Actions
14 January 2009 - 8:45AM
PR Newswire (US)
- Fourth quarter 2008 product sales estimated at $1.55 billion VAN
BUREN TOWNSHIP, Mich., Jan. 13, 2009 /PRNewswire-FirstCall/ --
Visteon Corporation (NYSE:VC), one of the world's leading suppliers
of automotive components and integrated systems, is providing
preliminary estimates of certain financial information for the
fourth quarter and full year 2008, along with an update on
restructuring and other business actions. Visteon expects to
release its final fourth-quarter and full-year 2008 financial
results on Feb. 25, 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20001201/DEF008LOGO ) Product
sales for fourth quarter 2008 are estimated to be $1.55 billion,
while full year 2008 sales are estimated at $9.1 billion.
Approximately 22 percent of total fourth quarter product sales were
in North America, with 37 percent in Europe and 35 percent in
Asia-Pacific. The reduction in fourth quarter sales compared with a
year ago is largely attributable to significantly lower vehicle
production by Visteon's global customers. Visteon continues to win
new business with a broad spectrum of customers across all regions,
a reflection of the company's significant global footprint and
breadth of innovative products. New business wins in 2008 were
about $650 million. Many of the innovations in Visteon's climate,
interiors, electronics and lighting products are featured on
vehicles prominently displayed at the 2009 North American
International Auto Show in Detroit. This includes significant
products for both the NAIAS 2009 Car of the Year - Hyundai Genesis
- and the 2009 Truck of the Year - Ford F-150. Visteon's year-end
2008 cash balances were $1.18 billion, which include $75 million
drawn under the company's principal U.S. credit line. Visteon's
debt balances at year-end 2008 were approximately $2.76 billion and
include $92 million for the non-cash impact of on-balance sheet
accounting treatment for the Europe securitization facility, which
was amended in fourth quarter 2008. Restructuring and Other Actions
Visteon completed its three-year improvement plan at a lower cost
and with greater savings than originally planned. Recent actions
taken at two Western European manufacturing locations bring to 30
the total number of facilities addressed. As of Dec. 31, 2008, $68
million was available in the escrow account to fund future
restructuring actions. Visteon continues to take other aggressive
actions in light of the current vehicle production environment. The
company is on track to complete, by the end of first quarter 2009,
the reduction of 800 salaried employees globally, announced in
October 2008. This action will generate an estimated per annum
savings of $60 million once completed. For the month of January
2009, Visteon adopted a four-day workweek schedule for about 2,000
salaried employees at its Van Buren Township and Plymouth, Mich.,
facilities commensurate with a 20 percent reduction in base
salaries. This action will be reassessed based on future market
conditions. The company also has implemented other actions to
reduce costs including the suspension of 401(k) matching
contributions and 2009 salary increases, the elimination of certain
benefit programs, and a reduction in new hiring. Additional actions
are being taken to reduce capital expenditures, working capital and
non-personnel expenses. Forward Looking Information This
presentation 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, changes in
interest rates and fuel prices; the automotive vehicle production
volumes and schedules of our customers; work stoppages at our
customers; 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,
or other significant suppliers to our customers, and possible
disruptions in the supply of commodities to us or our customers due
to financial distress or work stoppages; our ability to timely
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 these costs; the
financial condition of our customers and the effects of
reorganization, consolidation and/or restructuring plans that may
be announced by our customers; 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; our
ability to meet the continued listing standards of the New York
Stock Exchange; as well as those factors identified in our filings
with the SEC (including our Annual Report on Form 10-K for the
fiscal year ended Dec. 31, 2007). We assume no obligation to update
these forward-looking statements. The financial results presented
herein are preliminary and unaudited and are subject to change;
final financial results will be included in the company's Annual
Report on Form 10-K for the fiscal year ended Dec. 31, 2008.
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
facilities in 26 countries and employs approximately 35,500 people.
http://www.newscom.com/cgi-bin/prnh/20001201/DEF008LOGO
http://photoarchive.ap.org/ DATASOURCE: Visteon Corporation
CONTACT: Media: Jim Fisher, +1-734-710-5557, , Investors: Steve
Ward, +1-734-710-5800, , both of Visteon Corporation Web site:
http://www.visteon.com/
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