While Q3 sales reached $4.15 billion, up by $270 million (7%) from a year ago, Visteon Corporation recorded a net loss of $1.36 billion ($10.86 per share), $1.2 billion ($9.64) of which was attributable to special charges. It lost $168 million ($1.34) a year ago.
Visteon this year recorded an $872 million non-cash charge for increased valuation allowances against deferred tax assets, and a $314 million write-down to reduce the net book value of fixed assets related to the steering systems product group.
The company also recognized $25 million of charges during Q3 related to early retirement and relocation programs to reduce the Master Agreement UAW workforce that it leases from Ford. The workforce was reduced by more than 700 people, which left the leased UAW headcount at approximately 18,000, down 9% from year-end 2003.
On the bright side, non-Ford sales climbed 37% to $1.38 billion, or 33% of total revenue. "The diversification of our customer base has been a driving focus throughout Visteon," says Mike Johnston, president and CEO. Ford revenues totaled $2.77 billion, a drop of $101 million from last year.
"We expect our revenues to increase in the fourth quarter, however, our current cost structure combined with escalating material surcharges will challenge our operating performance for the rest of the year."
For the first nine months of 2004, Visteon reported a loss of $1.3 billion ($10.37) on revenues of $14 billion, up $795 million (6%) over last year. Non-Ford sales of $4.1 billion represent a $1.1 billion (36%) year-over-year increase year and represent 29% of total sales. Ford revenue months dipped 3% to $9.9 billion. Cash flow from operating activities amounted to $227 million, an improvement of nearly $200 million from the same period in 2003.