Visteon Reports $863 Million 4Q Loss
DETROIT (AP) _ Auto supplier Visteon Corp. said its loss widened to $863 million in the fourth quarter as revenue slipped and it absorbed more big charges related to restructuring its operations.
The company also said Friday it expects this quarter’s earnings will fall short of Wall Street’s current estimates. Its shares sank nearly 8 percent, dropping 97 cents to $11.38 in morning trading on the New York Stock Exchange.
Dearborn-based Visteon said its net loss amounted to $6.87 per share for the three months ended Dec. 31 compared with a loss of $34 million, or 27 cents per share, in the same quarter a year earlier.
Excluding special charges of $756 million, or $6.02 a share, the company lost 85 cents per share. The consensus forecast of analysts polled by Thomson First Call was for a loss of 59 cents a share before one-time items.
Revenue slipped to $4.46 billion from $4.54 billion a year ago.
``We’ve completed many significant actions during the course of 2003 to improve our performance in 2004 and beyond,″ chairman and chief executive Peter J. Pestillo said in a statement. ``Our agreements with Ford and the UAW, the exit of seating and other restructuring activities, combined with new business revenue, enable us to substantially improve our results going forward.″
Ford Motor Co. once owned Visteon and remains a major customer.
For the first quarter, Visteon expects net income in the range of 5 to 15 cents per share, short of Wall Street’s estimates of 23 cents per share. Revenue is expected to be between $4.8 billion to $4.9 billion.
For 2003, Visteon lost $1.21 billion, or $9.65 per share, versus a loss of $352 million, or $2.75 per share, a year earlier. Revenue fell to $17.66 billion from $18.4 billion.
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