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[NEWS RELEASE]
Contact(s): Media Inquiries:
Visteon Corporation
Denise Bither Public Affairs
313-755-4063 5500 Auto Club Drive
[email protected] Dearborn, MI 48126
Facsimile: 313-755-7983
Investor Inquiries:
Kent Niederhofer
313-755-3699
[email protected]
[VISTEON LOGO]
FOR IMMEDIATE RELEASE
VOLUME REDUCTIONS IMPACT VISTEON'S FOURTH QUARTER EARNINGS ESTIMATE
DEARBORN, Mich., Dec. 5, 2000 -- Visteon Corporation (NYSE: VC),today announced
that Fourth Quarter earnings are anticipated to be lower than analysts'
expectations. Visteon is reducing its internal estimate of earnings to about 35
cents per share, which includes a previously announced gain for the sale of its
interest in Conix. This decline reflects primarily reductions in production
announced by Ford Motor Company.
In addition, Visteon will record a non-cash impairment write-down of
approximately $140 million after taxes ($1.08 per share) in the Fourth Quarter
to reduce the net book value of the assets associated with the Glass Segment.
The write-down reflects revised estimates of the fair value of the assets
following the end of discussions with Pilkington plc. Continuing pressures on
cost and prices in the sector make it unlikely that Visteon will recover fully
the recorded value of assets associated with this business. Visteon remains
committed to finding solutions for the Glass Segment during the coming months.
The combined effect of the lower earnings estimate and the non-cash impairment
write down will result in a net loss for the Fourth Quarter.
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[NEWS RELEASE]
Visteon is taking a number of aggressive actions to address the softening of
U.S. industry volumes. These include:
- A reduction in capital spending
- An immediate hiring freeze
- Eliminating most production overtime
- And substantial reductions in all discretionary spending.
"These actions can have an immediate effect on the bottom line," said Peter J.
Pestillo, Chairman and CEO, Visteon Corporation. "In addition, I've asked Mike
Johnston, Visteon's President, to undertake a 30-day functional review of
worldwide operations with a goal of reducing structure, eliminating redundancies
and streamlining processes."
Visteon Corporation is a leading full-service supplier that delivers
consumer-driven technology solutions to automotive manufacturers worldwide and
through multiple channels within the global automotive aftermarket. Visteon has
a global delivery system of more than 130 technical, manufacturing, sales, and
service facilities located in 23 countries. It has 81,000 employees working in
three business segments: Dynamics and Energy Conversion; Comfort, Communication
and Safety; and Glass.
This press release contains forward-looking statements made pursuant to the
Private Securities Litigation Reform Act of 1995. Words such as "estimated" and
"potentially" signify forward-looking statements. Forward-looking statements are
not guarantees of future results and conditions but rather are subject to
various risks and uncertainties, some of which are and will be identified as
"Risk Factors" in our SEC filings. See "Risk Factors" section of our prospectus
dated June 13, 2000 as filed with the SEC on June 14, 2000. Should any risks and
uncertainties develop into actual events, these developments could have material
adverse effects on our business, financial condition and results of operations.
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Visteon news releases, photographs and product specification details
are available at www.visteon.com
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