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News
Visteon warns on 4Q
December 5, 2000: 7:09 p.m. ET

No. 2 auto parts supplier will miss Street by 31 cents per share, post net loss
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NEW YORK (CNNfn) - Visteon Corporation warned Tuesday that fourth quarter earnings will miss analysts' expectations due to production cuts announced by leading client and former corporate parent Ford Motor Co.

The Dearborn, Mich.-based auto parts manufacturers now estimates that it will earn approximately 35 cents a share, including a previously announced gain for the sale of its interest in Conix. Analysts had been expecting earnings of 66 cents per share and revenue of $4.63 billion.

  graphic HOW BIG IS VISTEON?  
    Visteon has about 81,000 employees in 130 countries. It had revenues of $19.4 billion and earnings of $735 million in 1999.
   
The company, which made the announcement after the regular stock market trading session had closed, said it will also record a non-cash impairment write-down of approximately $140 million after taxes or $1.08 per share to reduce the net book value of the assets associated with its Glass Segment.

The company said that competition within the glass sector as well as escalating costs will make it unlikely that the company will be able to recover fully the assets associated with this business.

The lower earnings estimate and the non-cash write-down will result in a net loss for the fourth quarter.

Visteon (VC: Research, Estimates) is the world's second largest auto parts supplier after the former General Motors unit Delphi Automotive Systems. It was spun off to Ford shareholders earlier this year partly in an effort to broaden its customer base away from Ford (F: Research, Estimates).

Before the earnings warning, shares of Visteon fell 50 cents, or 3 percent, to close Tuesday at $14.44 on the New York Stock Exchange.

Visteon has about 81,000 employees in 130 countries. It had revenues of $19.4 billion and earnings of $735 million in 1999.  graphic

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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.