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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report January 19, 2001
(Date of earliest event reported)
VISTEON CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-15827 38-3519512
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(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)
5500 Auto Club Drive, Dearborn, Michigan 48126
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (800)-VISTEON
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ITEM 5. OTHER EVENTS.
On January 19, 2001, we issued a press release concerning our fourth
quarter and fiscal year 2000 results. The press release, filed as Exhibit 20 to
this Current Report on Form 8-K, is incorporated herein by this reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
Exhibit No. Description
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20 Press release dated January 19, 2001
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
VISTEON CORPORATION
Date: January 19, 2001 By: /s/ Stacy L. Fox
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Stacy L. Fox
Senior Vice President,
General Counsel and Secretary
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EXHIBIT INDEX
Exhibit No. Description Page
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Exhibit 20 Press Release dated
January 19, 2001
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EXHIBIT 20
Contacts: Media Inquiries:
Liane Smyth Visteon Corporation
313-755-2916 Public Affairs
lsmyth1@visteon.com 5500 Auto Club Drive
Dearborn MI 48126
Investor Inquiries: Facsimile 313-755-7983
Kent Niederhofer
313-755-3699
kniederh@visteon.com
[VISTEON LOGO]
FOR IMMEDIATE RELEASE
VISTEON CORPORATION ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2000 RESULTS
DEARBORN, Mich., Jan. 19, 2001 - Visteon Corporation (NYSE: VC) today announced
that it earned $270 million, or $2.08 per share in 2000. This compares with
earnings of $735 million in 1999. Full year revenue in 2000 was $19.5 billion,
up 1 percent compared with 1999; after-tax return on sales was 1.5 percent.
The earnings decline compared with 1999 was more than accounted for by the
effects of a one-time price realignment of 5 percent that resulted from
Visteon's separation from Ford Motor Company, other independence-related costs,
and a non-cash impairment charge related to Visteon's Glass business. Visteon's
full year 2000 earnings, excluding the Glass impairment charge, were up $127
million from 1999 pro forma results, which are adjusted for the one-time price
realignment and independence costs.
In fourth quarter 2000, Visteon incurred a loss of $87 million. This included
the Glass impairment charge of $138 million, and a gain of about $20 million on
the sale of Visteon's interest in Conix. In the fourth quarter of 1999, Visteon
earned $95 million. Revenue for fourth quarter 2000 was $4.5 billion.
Despite deteriorating industry volume in the second half of 2000, Visteon ended
the year in a strong financial position. Cash and marketable securities totaled
almost $1.5 billion at year-end and the company met the operating milestones it
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established in January 2000 with respect to earnings, new business, cost
reduction, operating cash flow, and quality.
"We've achieved all our milestones and ended the year with a very strong balance
sheet," said Visteon Chairman and Chief Executive Officer Peter J. Pestillo. "We
have instituted structure and cost initiatives that should significantly
increase our ability to win new business and strengthen profitability going
forward."
Milestones Visteon achieved in 2000 included:
EARNINGS
Excluding the one-time Glass impairment charge, Visteon's 2000 earnings were
$408 million, up 45 percent compared with 1999 pro forma levels. Our milestone
was to improve by 35 percent before any major unusual factors.
NEW BUSINESS
Visteon exceeded its milestone of securing $2.5 billion in new business in 2000.
The company won a record $2.6 billion in annual new business from customers
including Ford, General Motors, PSA, Hyundai, Volkswagen, DaimlerChrysler,
Renault, and Honda, and Fiat. Of that new business, 37 percent was non-Ford and
31 percent was outside of North America.
COST REDUCTION
Visteon ended the year with total cost savings of $590 million in 2000, which
exceeded the milestone by $140 million. This performance reflected a strong
year-to-year improvement in the fourth quarter.
OPERATING CASH FLOW
Visteon's operating cash flow adjusted for acquisitions, dividends, and
independence actions totaled $225 million last year. This exceeded Visteon's
milestone, which was to achieve a positive cash flow in 2000.
QUALITY
Data through October 2000 indicates Visteon has improved year-to-date quality by
63 percent. Based on this, the company is confident it will exceed its milestone
of 30 percent improvement when year-end data becomes available. To accelerate
further progress, the company already has more than 100 employees working toward
certification as Six-Sigma Black Belts to work on projects that will help
increase customer satisfaction and reduce defects and costs.
New products included Visteon's in-car computing platform (ICES), Driver Vision
at Night, Reconfigurable Projected Image Display (RPID), MACH(R) MP3 music
system, the next generation NavMate(R) with enhancements in mobile route
guidance technology, and the first factory-installed DVD Rear Seat Entertainment
system, which will be featured on three new GM mid-sized SUVs. Visteon has more
than two-dozen partnerships, teaming with some of the world's leading consumer
and technology companies. Recently announced partnerships include Microsoft,
Agere, Raytheon, and Kayaba.
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Visteon Corporation is a leading full-service supplier that delivers
consumer-driven technology solutions to automotive manufacturers worldwide and
through multiple channels within the global automotive aftermarket. Visteon has
a global delivery system of more than 130 technical, manufacturing, sales, and
service facilities located in 23 countries. It has 81,000 employees working in
three business segments: Dynamics and Energy Conversion; Comfort, Communication
and Safety; and Glass.
This press release may contain forward-looking statements made pursuant to the
Private Securities Litigation Reform Act of 1995. Forward-looking statements are
not guarantees of future results and conditions but rather are subject to
various risks and uncertainties, some of which are and will be identified as
"the Risk Factors" in Visteon's SEC filings. See "Risk Factors" section of
Visteon's prospectus dated June 13, 2000 as filed with the SEC on June 14, 2000.
Should any risks and uncertainties develop into actual events, these
developments could have material adverse effects on Visteon's business,
financial condition and results of operations.
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Visteon news releases, photographs and product specification details
are available at www.visteon.com
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VISTEON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
FOR THE YEARS ENDED
DECEMBER 31,
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2000 1999 1998
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(IN MILLIONS, EXCEPT
PER SHARE AMOUNTS)
SALES
Ford and affiliates $16,448 $17,105 $16,350
Other customers 3,019 2,261 1,412
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Total sales 19,467 19,366 17,762
COSTS AND EXPENSES
Costs of sales 18,025 17,503 15,969
Selling, administrative and other expenses 781 674 659
Asset impairment charge 220 - -
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Total costs and expenses 19,026 18,177 16,628
OPERATING INCOME 441 1,189 1,134
Interest income 109 79 38
Interest expense 167 143 82
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Net interest expense (58) (64) (44)
Equity in net income of affiliated companies 56 47 26
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INCOME BEFORE INCOME TAXES 439 1,172 1,116
Provision for income taxes 143 422 416
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INCOME BEFORE MINORITY INTERESTS 296 750 700
Minority interests in net income/(loss) of subsidiaries 26 15 (3)
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NET INCOME $ 270 $ 735 $ 703
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Average number of shares of Common Stock outstanding 130 130 130
EARNINGS AND DIVIDENDS PER SHARE
Basic and diluted $2.08 $5.65 $5.41
Cash dividends $0.12 $ - $ -
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VISTEON CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
DECEMBER 31,
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2000 1999
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(IN MILLIONS)
ASSETS
Cash and cash equivalents $ 1,412 $ 1,849
Marketable securities 65 -
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Total cash and marketable securities 1,477 1,849
Accounts and notes receivable - Ford and affiliates 1,333 1,578
Accounts receivable - other customers 857 613
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Total receivables 2,190 2,191
Inventories 948 751
Deferred income taxes 192 110
Prepaid expenses and other current assets 198 295
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Total current assets 5,005 5,196
Equity in net assets of affiliated companies 142 205
Net property 5,497 5,789
Deferred income taxes 100 362
Other assets 581 897
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TOTAL ASSETS $11,325 $12,449
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LIABILITIES AND STOCKHOLDERS' EQUITY
Trade payables $ 1,949 $ 3,150
Accrued liabilities 1,086 1,211
Income taxes payable 147 153
Debt payable within one year 622 961
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Total current liabilities 3,804 5,475
Long-term debt 1,397 1,358
Other liabilities 2,601 3,964
Deferred income taxes 18 153
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Total liabilities 7,820 10,950
STOCKHOLDERS' EQUITY
Capital stock
Preferred Stock, par value $1.00, 50 million shares authorized,
none outstanding - -
Common Stock, par value $1.00, 500 million shares authorized,
131 million shares issued and outstanding 131 -
Capital in excess of par value of stock 3,311 -
Prior owner's net investment - 1,566
Accumulated other comprehensive income (179) (67)
Other (12) -
Earnings retained for use in business 254 -
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Total stockholders' equity 3,505 1,499
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 11,325 $12,449
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VISTEON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED
DECEMBER 31,
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2000 1999 1998
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(IN MILLIONS)
CASH AND CASH EQUIVALENTS AT JANUARY 1 $1,849 $ 542 $ 344
Cash flows (used in)/provided by operating activities (526) 2,482 1,376
Cash flows from investing activities
Capital expenditures (793) (876) (861)
Acquisitions and investments in joint ventures, net (28) (579) (108)
Purchases of securities (126) - -
Sales and maturities of securities 61 - -
Other 44 2 29
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Net cash used in investing activities (842) (1,453) (940)
Cash flows from financing activities
Cash distributions from/(to) prior owner 85 (558) (267)
Commercial paper issuances, net 352 - -
Changes in short-term debt (1,775) - -
Proceeds from issuance of short-term debt 1,374 493 34
Proceeds from issuance of other debt 1,279 816 96
Principal payments on other debt (290) (361) (149)
Cash dividends (16) - -
Other (85) (100) 52
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Net cash provided by/(used in) financing activities 924 290 (234)
Effect of exchange rates changes on cash 7 (12) (4)
Net (decrease)/increase in cash and cash equivalents (437) 1,307 198
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CASH AND CASH EQUIVALENTS AT DECEMBER 31 $1,412 $1,849 $ 542
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