News of April 25, 2001
Visteon Corporation Reports First Quarter 2001 Earnings of $31 Million; Implements Customer-Facing Corporate Structure
DEARBORN, Mich. Ė Despite a tougher industry climate with lower volumes, Visteon Corporation announced it earned $31 million, or $0.24 per share during the First Quarter of 2001. Visteon's First Quarter results compare with earnings of$147 million in the First Quarter of 2000.
First Quarter earnings are down $93 million when compared with 2000 pro forma results, which are adjusted for the effects of independence-related costs resulting from Visteon's separation from Ford Motor Company. The decline in earnings is more than accounted for by the effect of price reductions and lower production volume in North America. Lower costs were a partial offset.
First Quarter 2001 revenue was $4.7 billion, down 10 percent compared with 2000. The decrease is more than accounted for by lower sales to Ford, reflecting primarily reduced production in North America. Added revenue from new business provided a partial offset. The after-tax return on sales during the quarter was 0.8 percent.
Visteon ended the First Quarter with $1.1 billion in cash and marketable securities, maintaining the Company's strong financial position. "We are starting the year with a strong balance sheet and a substantial increase in non-Ford wins, which shows a growing level of confidence in Visteon by an increasing number of OEMs," said Visteon Chairman and Chief Executive Officer Peter J. Pestillo. "This additional new business with non-Ford customers is important to the future of Visteon because it helps us diversify our business portfolio."
The company recently announced a new customer-facing structure, which included the elimination of 1,800 jobs worldwide. The structuring, which we expect to be complete in the Second Quarter, will result in a one-time charge estimated at $135 million after taxes. This charge will be reflected in Second Quarter results and the costs recovered in a little more than a year.
(April 20, 2001)