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News > Companies
Visteon issues 3Q warning
August 30, 2000: 8:12 p.m. ET

Firestone recall, Ford production cuts to trim parts supplier's profits
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NEW YORK (CNNfn) - Auto parts company Visteon Corp. on Wednesday warned that changes in Ford Motor Co.'s truck production, spurred by the recall of millions of Firestone tires, would cut its third quarter earnings by 12 to 14 cents per share.

Dearborn, Mich.-based Visteon (VC: Research, Estimates), the massive auto parts and equipment subsidiary spun off from Ford Motor Co., had been expected to report a profit of 49 cents a share in the period, according to First Call, which surveys Wall Street analysts.

graphicVisteon said it believes that the company could recover some of the lost revenue later in the year as Ford (F: Research, Estimates) evaluates actions to make up for lost production.

Last week, Ford Motor Co. said it would halt production at three truck assembly plants for two weeks beginning Aug. 28 in order to free up 70,000 tires so they can be used as replacements in the Firestone recall.

Earlier this month, Bridgestone Corp. recalled 6.5 million of its Firestone-brand tires -- the second largest tire recall in U.S. history -- in response to complaints the tires may be linked to fatal crashes involving sport utility vehicles.

Halting production at the three plants, Edison Assembly, in Edison, N.J., Twin Cities Assembly in St. Paul, Minn., and St. Louis Assembly in Hazelwood, Mo., will cut 25,000 trucks from Ford's third-quarter production schedule, according to Ford.

Shares of Visteon ended Wednesday's regular session at $16.19, unchanged from Tuesday's close. The earnings warning was announced after the bell. Back to top

  RELATED STORIES

Ford curtails production - Aug. 21, 2000

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.