Visteon posts loss, cutting 2,800 jobs

[DainBramaged]

Source: Automotive News

Visteon Corp. widened its net loss in the third quarter compared to a year ago and plans to further slash its operations and employee headcount during the remainder of the year.

The former Ford Motor Co. parts unit expects to cut more than 2,800 hourly and salaried jobs by early next year.

In a statement released today, Visteon said posted a net loss of $188 million, on revenue of $2.0 billion in the third quarter, expanding its net loss of $109 million on revenue of $2.14 billion in the same period last year.

"We expect the fourth-quarter to continue to be pressured as the difficulties in the global financial markets have impacted consumer demand for vehicles and led to significant lower production volumes," CEO Donald Stebbins said in a statement.

Plant closures took $200 million in revenue off the company's balance sheet and product revenue dropped by about $400 million as the company's main customers, namely Ford Motor, slashed vehicle production.

Visteon cut about 1,200 hourly workers globally during the third quarter, and plans to cut 800 salaried employees by the end of the first quarter in 2009 to the tune of $60 million for the salaried cuts. About 150 salaried employees were cut in the third quarter, costing the company $25 million.

The company also has been cutting 880 jobs in Mexico in recent months.

In another cost-cutting effort, Visteon said it plans to stop paying for prescription drug benefits of Medicare-eligible U.S. retirees who worked at two plants recently closed. The company did not name the plants.

All told, the third quarter proved very expensive for Visteon. Restructuring expenses cost the company $42 million, and divestiture losses and asset impairments cost $19 million.

Through the first nine months of 2008, Visteon posted a net loss of $335 million on revenue of $7.53 billion, not far from its $329 million net loss on revenue of $8 billion through the same period a year ago.

The company has never posted an annual profit since it spun-off from Ford in 2000.



Read more: http://www.autonews.com/article/20081030/COPY01/310309868/1128

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shit, more lives in the toilet

[OhioChick]

1. More bleeding.....

K&R

:kick:

[PassingFair]

2. The "real economy" is in the crapper.

Michigan has been a living hell for over a year now.

It WILL spread to other states, people who don't have
their eyes open will be caught off guard.

I tremble for our country.

[bentley]

3. Unemployment in Rhode Island

is at 8.8%, I believe it's the highest in the country.