Auto Parts Maker Visteon Raises Outlook

DEARBORN, Mich. Reuters reported that auto parts maker Visteon Corp. on Wednesday raised its earnings outlook for the second quarter and all of 2002, citing a stronger than expected operating performance and healthier industry environment.

Visteon, which ranks as the world's third-largest parts supplier, said it expects to post a full-year net loss of $259 million to $289 million, including special charges for several restructuring moves taken in the first quarter.

The company said its full-year earnings before charges should range from $50 million to $80 million, up from its previous estimate of $25 million to $75 million.

For the second quarter, the former parts arm of Ford Motor Co. said it sees income of $70 million to $75 million, up from its earlier forecast of $60 million to $70 million.

Visteon said it expects to generate positive operating cash flow for the full year, including $150 million to $250 million in the second quarter, excluding cash paid related to restructuring. The company said the estimates assume Ford North American production of 4 million to 4.1 million vehicles this year.