Visteon Corp. (VC) Posts Q3 EPS of 28c; Sees FY12 Sales at Upper-End; Announces Restructuring
Visteon Corp. (NYSE: VC) reported Q3 EPS of $0.28, $0.20 worse than the analyst estimate of $0.48. Revenue for the quarter came in at $1.62 billion versus the consensus estimate of $1.62 billion.
Visteon has moved its sales guidance for full-year 2012 to the upper end of the previously announced range and has narrowed the range of previously announced earnings guidance for 2012. The company expects full-year 2012 product sales to be approximately $6.8 billion and adjusted EBITDA to be in the range of $590 million to $610 million. The company has increased its free cash flow guidance and expects to generate positive free cash flow for 2012 in excess of $25 million.
Today Visteon announced its intention to restructure the company, including a plan to address and rationalize certain underperforming facilities and to significantly reduce global selling, general and administrative (SG&A) and other costs. "Year-to-date, we have reduced targeted costs by 7 percent compared with 2011 levels, but there is more we can and must do," Leuliette said. The company expects to incur restructuring and other costs of approximately $100 million with charges beginning in the fourth quarter of 2012. Savings are expected to result in year-over-year improvements in both 2013 and 2014.
Visteon has moved its sales guidance for full-year 2012 to the upper end of the previously announced range and has narrowed the range of previously announced earnings guidance for 2012. The company expects full-year 2012 product sales to be approximately $6.8 billion and adjusted EBITDA to be in the range of $590 million to $610 million. The company has increased its free cash flow guidance and expects to generate positive free cash flow for 2012 in excess of $25 million.
Today Visteon announced its intention to restructure the company, including a plan to address and rationalize certain underperforming facilities and to significantly reduce global selling, general and administrative (SG&A) and other costs. "Year-to-date, we have reduced targeted costs by 7 percent compared with 2011 levels, but there is more we can and must do," Leuliette said. The company expects to incur restructuring and other costs of approximately $100 million with charges beginning in the fourth quarter of 2012. Savings are expected to result in year-over-year improvements in both 2013 and 2014.
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