Visteon Earns $155 Million in Third Quarter - Up 5 Percent
18 October 1999
Visteon Earns $155 Million in Third Quarter - Up 5 Percent
DEARBORN, Mich., Oct. 18 -- Visteon Automotive Systems' net
income for the third quarter of 1999 was $155 million, up 5 percent from the
$148 million earned in the same quarter last year. Third quarter 1999 revenue
was $4.6 billion, up 12 percent from year ago levels, with after-tax return on
sales for the quarter at 3.6 percent.
For the first nine months of 1999, net income was $640 million, up
11 percent from 1998. Revenue for the first nine months was $14.4 billion, up
9 percent. After-tax return on sales for the first nine months of 1999 was
4.5 percent, up from 4.3 percent.
During the first nine months of the year, Visteon made considerable
progress toward its 1999 milestone of $2 billion in new business:
* Visteon won $1.7 billion worth of annualized new business contracts.
* 36 percent of the contracts were from customers other than Ford.
* 37 percent of the contracts were won outside of North America.
* Over 8 percent of the contracts were won in the aftermarket.
"Visteon's reputation as a world-class systems supplier is growing in
every automotive market," said Craig H. Muhlhauser, president, Visteon
Automotive Systems. "We are building an outstanding portfolio of innovative
technologies and breakthrough systems solutions by listening to the needs of
consumers.
In a recent survey, automotive executives named Visteon the world's
leading systems integrator, best body exterior supplier and best supplier of
transmission and drivetrain systems. Visteon's Superintegration(TM), an
innovative technology destined to define the future of automotive design, and
its Voice Technology are preeminent in the industry.
Visteon showcased a number of its consumer-driven technology systems --
including Superintegration(TM) and Voice Technology -- at last month's
Frankfurt Motor Show. Other leading-edge products and partnerships
highlighting Visteon's technology and consumer focus at the show were:
Visteon's night visibility system; ICES, Visteon's Information, Communication,
Entertainment, Safety and Security in-car computing platform; the NavMate(R)
navigation system; the in-dash 6 CD radio; the European Rear Seat
Entertainment System; and partnerships with Nintendo, 3Com and Bang & Olufsen.
"The growth and profitability of Visteon's business clearly demonstrates
we are well on our way to meeting all of our strategic business objectives for
the year with products our customers want," Muhlhauser concluded.
With a global delivery system of more than 125 technical, manufacturing,
sales and service facilities located in 21 countries, Visteon Automotive
Systems is leveraging the talents of its 77,000 employees to deliver
innovative, consumer-driven technology systems solutions to its customers.
Consolidated Statement of Income
Third Quarter Nine Months
1999 1998 1999 1998
(Mils.) (Mils.) (Mils.) (Mils.)
Revenue $4,600 $4,097 $14,435 $13,200
Cost and expenses
Cost of goods sold $4,137 $3,682 $12,812 $11,770
Selling, administrative,
and other expenses 183 172 584 507
Total costs and
expenses $4,320 $3,854 $13,396 $12,277
Operating income $280 $243 $1,039 $923
Interest
Interest income $26 $13 $50 $27
Interest expense 50 21 99 61
Net interest expense $(24) $(8) $(49) $(34)
Equity in net income of
affiliated companies 4 5 32 21
Income before taxes $260 $240 $1,022 $910
Provision for income taxes 96 91 372 336
Income before minority
interests $164 $149 $650 $574
Minority interests in net
income of subsidiaries 9 1 10 0
Net income $155 $148 $640 $574
Memo:
After-tax return on sales 3.6% 3.6% 4.5% 4.3%
During third quarter 1999, Ford recognized a $125 million after-tax charge
resulting from actuarial valuations of post-retirement health care and life
insurance benefits for certain Visteon operations. Visteon retroactively
reflected this adjustment in its historical financial statements.