Visteon (VC) Reports Preliminary Q4, FY08 Sales Results; Updates Restructuring Actions Including Job Cuts

January 13, 2009 4:50 PM EST

Visteon Corporation (NYSE: VC) sees Q4 sales of $1.55 billion and FY08 sales of $9.1 billion. The Street is currently expecting Q4 and FY08 sales of $ billion and $ billion, respectively.

Separately, Visteon completed its three-year improvement plan at a lower cost and with greater savings than originally planned. Recent actions taken at two Western European manufacturing locations bring to 30 the total number of facilities addressed. As of Dec. 31, 2008, $68 million was available in the escrow account to fund future restructuring actions.

Visteon continues to take other aggressive actions in light of the current vehicle production environment. The company is on track to complete, by the end of first quarter 2009, the reduction of 800 salaried employees globally, announced in October 2008. This action will generate an estimated per annum savings of $60 million once completed. For the month of January 2009, Visteon adopted a four-day workweek schedule for about 2,000 salaried employees at its Van Buren Township and Plymouth, Mich., facilities commensurate with a 20 percent reduction in base salaries. This action will be reassessed based on future market conditions. The company also has implemented other actions to reduce costs including the suspension of 401(k) matching contributions and 2009 salary increases, the elimination of certain benefit programs, and a reduction in new hiring. Additional actions are being taken to reduce capital expenditures, working capital and non-personnel expenses.

Visteon Corporation supplies automotive systems, modules, and components to vehicle manufacturers and the automotive aftermarket worldwide.

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