Buckingham Research Maintains a 'Neutral' on Visteon (VC), Lowers 2009 Estimates

February 26, 2009 10:51 AM EST

Buckingham Research maintains a 'Neutral' on Visteon (NYSE: VC).

Buckingham analyst says, "We are maintaining our Neutral on VC given the increasingly challenging global production environment. We remain concerned about the company’s 41% European exposure given our outlook for a weakening European light vehicle production environment, which should continue to put pressure on VC’s earnings in 2009. Given the fluid automotive market and the adverse impact of VC’s earnings in 2009, the company could violate current debt covenants. We are expecting additional pressure for 2009 North American light vehicle production, with more significant declines among the Domestic Three. Although VC’s Domestic Three exposure only accounts for 15% of total sales, we still expect VC’s earnings to be adversely impacted by the negative product shift and pricing pressure among most OEMs. We are lowering our 2009 EPS estimates to reflect weaker expectations for global production. Our revised 2009 EPS and EBIT-R estimates are $(6.09) and $(496)M, respectively."

Visteon Corporation (Visteon) is a global supplier of automotive systems, modules and components to international vehicle manufacturers and the automotive aftermarket.

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