Visteon Corporation, the once-captive Ford parts and electronics business, reports that it lost $118 million U.S. in 2001, a blow that was somewhat softened by the relatively strong performance of its non-Ford customers.
“2001 was a tough year. We had solid operating performance in the First Half, but major production cuts and erratic production schedules by our largest customers led to weaker financial performance in the Second Half,” said Peter J. Pestillo, Visteon Chairman and Chief Executive Officer. “Restructuring and other actions taken early in the year helped offset the impact of a weaker economic environment and allowed us to maintain a solid financial position. I’m also pleased that we’ve put a strong management team in place that will help drive breakeven down and position us for growth when the economy recovers.”
Fourth Quarter 2001 sales were $4.5 billion, down $36 million compared with the same period last year, as business with non-Ford customers partially offset the decline in Ford revenue associated with lower North American production. Non-Ford sales during the quarter increased to $822 million or 18% of total sales. All figures in U.S. dollars.
For full year 2001, Visteon reported a loss of $118 million or $0.91 per share. Excluding previously disclosed restructuring charges of $121 million or $0.93 per share, Visteon posted earnings of $3 million or $0.02 per share for full year 2001. In 2000, the company earned $270 million or $2.08 per share. Excluding the effect of the Glass impairment charge, the company earned $408 million or $3.14 per share in 2000.
Visteon ended the year with $1.2 billion in cash and marketable securities, down $296 million from the end of 2000, but up $203 million from the end of the Third Quarter. The improvement during the quarter was driven largely by lower inventory levels, which reflected the company’s stepped-up focus on cash management.
Full year 2001 sales were $17.8 billion, down more than $1.6 billion compared with 2000. Lower North American production at Ford more than accounted for the decline — sales to Ford were down $1.8 billion or 11% during the year. Sales to non-Ford customers increased $168 million or 6% to $3.2 billion. For the year, sales to non-Ford customers represented 18% of total sales, an increase of 2%age points.
Visteon announced a Fourth Quarter loss of $14 million or $0.11 per share — in line with consensus expectations. In the Fourth Quarter 2000, Visteon incurred a loss of $87 million or $0.67 per share. The Fourth Quarter 2000 results included a non-cash impairment charge related to our Glass business of $138 million or $1.06 per share, and a gain of about $20 million or $0.16 per share on the sale of Visteon’s interest in Conix.
For 2001, Visteon won $1.5 billion in net new business from 13 global automakers in every region of the world. More than 75% of the wins were with customers other than Ford and 40% were outside North America.
Recent announcements include new business wins with DaimlerChrysler on Mercedes-Benz trucks and substantial systems on new vehicles including the Renault Clio, Ford Thunderbird and Ford Fiesta.
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