Reports Improved First Quarter Earnings and Increases Full-Year Guidance
Visteon Corporation of DEARBORN, Mich. today reported first quarter 2004 net income of $30 million, or $0.23 per share. These results are an improvement of $45 million, or $0.35 per share, compared to a net loss of $15 million, or $0.12 per share, in the first quarter 2003. First quarter results include after-tax special charges of $7 million in 2004 and $20 million in 2003.
Revenue for the first quarter 2004 was $5 billion, up $268 million from first quarter 2003. The increase, compared to a year ago, reflects primarily growth in non-Ford revenue and the favorable impact of exchange rates. Non-Ford revenue totaled $1.3 billion for the quarter, up 36% or about $350 million from the first quarter of 2003.
First quarter earnings reflect the benefits from improved operating performance, increased non-Ford business, earlier restructuring actions, and decreased post-retirement health care and life insurance expenses, offset partially by price reductions. Visteon's first quarter earnings were above the company's previous guidance of $0.05 to $0.15 per share primarily due to lower than anticipated post-retirement health care and life insurance benefit expenses.
Cash provided by operating activities was $105 million, a $240 million improvement in performance from first quarter 2003. Visteon ended the quarter with $1.2 billion in cash and marketable securities.
and Full Year 2004 Outlook
Visteon expects full year revenue to be between $18.6 billion and $18.8 billion in 2004. This estimate is based on full year Ford North American vehicle production of 3.7 million units. Non-Ford revenue is expected to exceed $5 billion for the full year. Visteon expects net income of $90 to $140 million, or $0.70 to $1.10 per share. This is higher than the company's previous guidance of $0.50 to $1.00 per share. Full year 2004 projected results include anticipated pre-tax special charges of up to $50 million. Visteon expects cash from operations to be higher than capital spending for the full year.
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