Visteon Corporation reportedly said on Thursday that Ford’s decreased production outlook means the vehicle parts maker will not return to profitability in 2004.
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The Associated Press (AP) said Visteon, which posted losses in 2002 and 2003, previously had predicted 2004 earnings of $US75 million to $110 million, or 60 cents to 90 cents per share.
Company spokeswoman Kimberley Welch told AP this forecast was based on expectations that Ford, which accounts for 72% of its sales, would produce 930,000 vehicles in North America in the fourth quarter. But, on September 1, the automaker cut its fourth-quarter production outlook to 830,000 vehicles.
Visteon, which spun off from Ford in 2000, reportedly said it now expects to incur a non-cash charge ranging from $825 million to $900 million in the third quarter because of a write-down of deferred tax assets. Visteon previously had predicted a third-quarter loss of $90 million to $105 million, or 70 cents to 80 cents per share. The company told AP on Friday that it does not expect to meet any previous forecasts for the second half of the year.
Welch reportedly said Visteon will provide a more detailed update to 2004 guidance on October 21, when the company releases its third-quarter earnings.
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