e8vk
UNITED STATES
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 (Date of earliest event reported) August 1, 2007
VISTEON CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware
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1-15827
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38-3519512 |
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.) |
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One Village Center Drive, Van Buren Township, Michigan
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48111 |
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(Address of principal executive offices)
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(Zip Code) |
Registrants telephone number, including area code (800)-VISTEON
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:
o Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
- 2
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SECTION 2 FINANCIAL INFORMATION
Item 2.02. Results of Operations and Financial Condition.
On August 1, 2007, the registrant issued a press release regarding its financial results for
the second quarter and first half of 2007. A copy of the press release is attached hereto as
Exhibit 99.1 and is incorporated herein by reference.
The information contained in Exhibit 99.1 shall not be deemed filed for purposes of Section
18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or incorporated by
reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except
as shall be expressly set forth by specific reference in such a filing.
SECTION 7 REGULATION FD
Item 7.01. Regulation FD Disclosure.
See Item 2.02. Results of Operations and Financial Condition above.
SECTION 9 FINANCIAL STATEMENTS AND EXHIBITS
Item 9.01. Financial Statements and Exhibits.
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Exhibit No. |
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Description |
99.1 |
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Press release dated August 1, 2007. |
- 3 -
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.
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VISTEON CORPORATION
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Date: August 1, 2007 |
By: |
/s/ Michael J. Widgren
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Michael J. Widgren |
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Vice President, Corporate Controller
and Chief Accounting Officer |
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- 4 -
EXHIBIT INDEX
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Exhibit No. |
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Description |
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99.1 |
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Press release dated August 1, 2007.
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exv99w1
NEWS RELEASE For Immediate Release
EXHIBIT
99.1
Visteon Announces Second Quarter 2007 Results
Highlights
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EBIT-R of $15 million net loss of $67 million |
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Cash from operations of $146 million |
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Cash balances of $1.5 billion |
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Continued progress on restructuring |
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Customer diversification continues; significant new business wins |
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Affirms previous guidance for full year 2007 |
VAN BUREN TOWNSHIP, Mich., Aug. 1, 2007 Visteon Corporation (NYSE:VC) today announced second
quarter 2007 results. For the second quarter 2007, Visteon reported a net loss of $67 million or
$0.52 per share, which included non-cash asset impairments of $13 million.
Second quarter EBIT-R, as defined below, was $15 million. Sales from continuing operations for the
quarter were $2.97 billion, including product sales of $2.83 billion and services revenues of $141
million. During the quarter, Visteon generated $146 million of cash from operating activities and
free cash flow, as defined below, of $66 million.
At the mid-point of our three-year improvement plan, we have demonstrated progress across each
pillar of the plan, said Michael F. Johnston, chairman and chief executive officer. More than
half of the restructuring actions are complete, and several others are well on their way to
completion. Even with significant reductions in customer volumes in North America, we are making
solid progress on improving our base operations through improved quality and safety and
significantly reduced administrative costs. We are also diversifying our sales and growing the
business, particularly outside of North America.
Restructuring
Visteon has now completed 16 of the 30 previously identified restructuring activities. During the
second quarter 2007, in the United States, the company ended production at its Chesapeake,
Va. facility, exited its facility in Chicago, commenced the closure of its Connersville, Ind.
facility, and announced its intention to close the Bedford, Ind. facility. The company has also
taken action to reduce costs at a number of its facilities in Western Europe.
As previously announced, Visteon completed the sale of three European chassis facilities, located
in Germany and Poland, during the second quarter 2007. These facilities represented a substantial
portion of the companys operating capabilities in certain chassis-related product lines, including
suspension systems, driveline systems and steering systems. Additionally, during May 2007 the
company ceased brake production at its Swansea facility in the United Kingdom, exiting the
remainder
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Contact(s): |
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Media Inquiries
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Investor Inquiries |
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Kimberley Goode
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Derek Fiebig
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Visteon Corporation |
734-710-5000
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734-710-5800
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One Village Center Drive |
kgoode@visteon.com
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dfiebig@visteon.com
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Van Buren Twp., Mich., 48111 |
of the
companys suspension systems operations. Accordingly, the results of operations
of the suspension systems product line have been classified as discontinued operations in the
consolidated statements of operations.
Visteon continues to make significant progress in the movement of its manufacturing and engineering
footprint to lower cost countries. As of June 30, 2007, more than half of the companys
manufacturing personnel and one-third of its engineering personnel were located in lower cost
countries. The company remains on track to have three quarters of its manufacturing and half of
its engineering personnel in lower cost countries by 2009.
Completed
restructuring actions will generate approximately $175 million of
annual savings. With
the completion of the 14 remaining restructuring actions, Visteon expects to achieve total annual
savings of approximately $400 million.
New Business Wins
Visteon continues to win new business from a diverse group of customers across each of the
companys key product lines. Year-to-date new business wins are approximately $450 million,
maintaining the momentum from 2006 when Visteon won $1 billion of new business. Of the 2007 new
business wins, nearly 75 percent is related to business outside of North America, and the wins are
primarily concentrated in climate and electronics.
Our focused product portfolio and our ability to deliver the innovation and quality our customers
expect is driving increased confidence in Visteon from a wide range of customers around the world,
especially in Asia where we continue to win substantial amounts of new orders through both our
wholly-owned and joint venture operations, said Donald J.
Stebbins, president and chief operating officer. Our wins demonstrate that we are successfully
restructuring and improving the company, while simultaneously positioning Visteon for the
long-term.
Free Cash Flow and Liquidity
Cash provided from operating activities totaled $146 million for the second quarter 2007,
increasing $38 million from the same period a year ago. Free cash flow of $66 million for the
quarter was an improvement of $56 million over the second quarter 2006. Year-to-date cash provided
from operating activities totaled $15 million, compared to $76 million for the first six months of
2006. For the first half of 2007, free cash flow was negative $129 million, $22 million lower than
first half 2006.
As of June 30, 2007, Visteon had cash balances totaling $1.5 billion and total debt of $2.7
billion. Additionally, no amounts were drawn on the companys $350 million asset-based U.S.
revolving credit facility.
Second Quarter 2007 Results
For the second quarter 2007, sales from continuing operations were $2.97 billion, including
favorable foreign currency of approximately $110 million. Sales from continuing operations for the
second quarter 2006 were $2.96 billion. Product sales to Ford Motor Co. declined 16 percent or $216
million to $1.11 billion, reflecting primarily lower North American production volumes, pricing,
sourcing and product mix. Product sales to other customers increased 15 percent, or $230 million,
to $1.72 billion and represented 61 percent of total product sales.
For the second quarter 2007, Visteon had a net loss of $67 million, or $0.52 per share, which
included $13 million of non-cash asset impairments. In the same period in
2006, Visteon reported net income of $50 million, or $0.39 per share. Last years results included
$22 million of non-cash asset impairments and an extraordinary gain of $8 million associated
with
the acquisition of a lighting facility in Mexico. Visteon also recognized a $49 million
benefit in the second quarter 2006 related to the relief of post-employment benefits for Visteon
salaried employees associated with two ACH manufacturing facilities transferred to Ford.
EBIT-R, as defined, for the second quarter 2007 was $15 million compared to $119 million for the
second quarter 2006.
Half Year Results
For the first half 2007, sales from continuing operations were $5.86 billion, including favorable
foreign currency of approximately $300 million. Sales from continuing operations for the same
period in 2006 were $5.87 billion, including product sales of $5.59 billion. Product sales to Ford
declined 14 percent, or $362 million, to $2.25 billion, reflecting primarily lower North American
production volumes, pricing, sourcing and product mix. Despite lower sales to Nissan
in North America due to production volumes, product sales to other customers increased 12 percent,
or $368 million, to $3.34 billion and represented 60 percent of total product sales.
Visteon reported a net loss of $220 million, or $1.70 per share, for the first six months of 2007.
These results include $63 million of non-cash asset impairments. This compares to net income of $53
million, or $0.41 per share, for the same period a year ago. Half year results for 2006 include
$22 million of non-cash asset impairments and an extraordinary gain of $8 million. In the first
half of 2006, Visteon recognized a cumulative benefit of $72 million related to the relief of
post-employment benefits for Visteon salaried employees associated with two ACH manufacturing
facilities transferred to Ford.
EBIT-R for the first half 2007 was a loss of $31 million compared to positive $191 million for the
same period in 2006.
Full Year 2007 Outlook
Visteon continues to expect EBIT-R for the full year 2007 to be in the range of negative $35
million to negative $135 million on product sales of $10.7 billion. Free cash flow is still
projected to be in the range of negative $180 million to negative $280 million.
The second half of 2007 will continue to be a challenge as we face low production on a number of
important platforms, particularly in North America, Johnston said. However we expect to show
significant year-over-year improvement in our financial performance compared to the back half of
2006 as we benefit from the restructuring actions we have taken and other cost-reduction efforts.
Visteon Corporation is a leading global automotive supplier that designs, engineers and
manufactures innovative climate, interior, electronic and lighting products for vehicle
manufacturers, and also provides a range of products and services to aftermarket customers. With
corporate offices in Van Buren Township, Mich. (U.S.); Shanghai, China; and Kerpen, Germany; the
company has facilities in 26 countries and employs approximately 45,000 people.
Forward-looking Information
This press release contains forward-looking statements within the meaning of 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 factors, risks and uncertainties that
could cause our actual results to differ materially from those expressed in these forward-looking
statements, including general economic conditions, changes in interest rates and fuel prices; the
automotive vehicle production volumes and schedules of our customers, and in particular Fords
vehicle production volumes; work stoppages at our customers; our ability to satisfy our future
capital and liquidity requirements and comply with the terms of our existing credit agreements and indentures; the financial distress of
our
suppliers, or other significant suppliers to our customers, and possible disruptions in the
supply of commodities to us or our customers due to financial distress or work stoppages; our
ability to timely implement, and realize the anticipated benefits of restructuring and other
cost-reduction initiatives, including our multi-year improvement plan, and our successful execution
of internal performance plans and other productivity efforts; the timing and expenses related to
restructurings, employee reductions, acquisitions or dispositions; increases in raw material and
energy costs and our ability to offset or recover these costs; the effects of reorganization and/or
restructuring plans announced by our customers; the effect of pension and other post-employment
benefit obligations; increases in our warranty, product liability and recall costs; the outcome of
legal or regulatory proceedings to which we are or may become a party; as well as those factors
identified in our filings with the SEC (including our Annual Report on Form 10-K for the fiscal
year ended Dec. 31, 2006). We assume no obligation to update these forward-looking statements. The
financial results presented herein are preliminary and unaudited; final interim financial results
will be included in the companys Quarterly Report on Form 10-Q for the quarterly period ended June
30, 2007.
Use of Non-GAAP Financial Information
This press release contains information about Visteons financial results which is not presented in
accordance with accounting principles generally accepted in the United States (GAAP). Such
non-GAAP financial measures are reconciled to their closest GAAP financial measures at the end of
this press release. The provision of these comparable GAAP financial measures for
full year 2007 is not intended to indicate that Visteon is explicitly or implicitly
providing projections on those GAAP financial measures, and actual results for such measures are
likely to vary from those presented. The reconciliations include all information reasonably
available to the company at the date of this press release and the adjustments that management can
reasonably predict.
###
Visteon news releases, photographs and product specification details
are available at www.visteon.com
VISTEON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Millions, Except Per Share Data)
(Unaudited)
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Three-Months Ended |
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Six-Months Ended |
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June 30 |
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June 30 |
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2007 |
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2006 |
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2007 |
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2006 |
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Net sales |
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Products |
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$ |
2,833 |
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$ |
2,819 |
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$ |
5,591 |
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$ |
5,585 |
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Services |
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141 |
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138 |
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271 |
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283 |
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2,974 |
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2,957 |
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5,862 |
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5,868 |
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Cost of sales |
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Products |
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2,679 |
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2,507 |
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5,322 |
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5,026 |
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Services |
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140 |
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137 |
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268 |
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281 |
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2,819 |
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2,644 |
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5,590 |
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5,307 |
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Gross margin |
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155 |
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313 |
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272 |
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561 |
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Selling, general and administrative expenses |
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145 |
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194 |
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314 |
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361 |
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Asset impairments |
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11 |
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22 |
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51 |
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22 |
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Restructuring expenses |
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37 |
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12 |
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62 |
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21 |
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Reimbursement from Escrow Account |
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47 |
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12 |
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82 |
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21 |
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Operating income (loss) |
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9 |
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97 |
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(73 |
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178 |
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Interest expense, net |
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41 |
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46 |
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81 |
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85 |
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Debt extinguishment gain |
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8 |
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8 |
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Equity in net income of non-consolidated affiliates |
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14 |
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12 |
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23 |
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19 |
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(Loss) income before income taxes, minority
interests, discontinued operations, change in
accounting and extraordinary item |
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(18 |
) |
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71 |
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(131 |
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120 |
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Provision for income taxes |
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28 |
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17 |
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45 |
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47 |
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Minority interests in consolidated subsidiaries |
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14 |
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10 |
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20 |
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17 |
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Net (loss)
income from continuing operations before change in accounting and extraordinary item |
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(60 |
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44 |
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(196 |
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56 |
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Loss from discontinued operations, net of tax |
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7 |
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2 |
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24 |
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7 |
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Net (loss) income before change in accounting and
extraordinary item |
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(67 |
) |
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42 |
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(220 |
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49 |
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Cumulative effect of change in accounting, net of tax |
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(4 |
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Net (loss) income before extraordinary item |
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(67 |
) |
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42 |
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(220 |
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45 |
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Extraordinary item, net of tax |
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8 |
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8 |
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Net (loss) income |
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$ |
(67 |
) |
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$ |
50 |
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$ |
(220 |
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$ |
53 |
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Per share data: |
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Basic and
diluted (loss) earnings per share from continuing operations before
change in accounting and extraordinary item |
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$ |
(0.46 |
) |
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$ |
0.34 |
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$ |
(1.52 |
) |
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$ |
0.44 |
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Loss from discontinued operations, net of tax |
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(0.06 |
) |
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|
(0.01 |
) |
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|
(0.18 |
) |
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|
(0.06 |
) |
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Basic and diluted (loss) earnings per share
before change in accounting and extraordinary item |
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|
(0.52 |
) |
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|
0.33 |
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|
(1.70 |
) |
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|
0.38 |
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Cumulative effect of change in accounting, net of tax |
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(0.03 |
) |
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Basic and diluted (loss) earnings per share before
extraordinary item |
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|
(0.52 |
) |
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|
0.33 |
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(1.70 |
) |
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|
0.35 |
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Extraordinary item, net of tax |
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0.06 |
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|
0.06 |
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Basic and diluted (loss) earnings per share |
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$ |
(0.52 |
) |
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$ |
0.39 |
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$ |
(1.70 |
) |
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$ |
0.41 |
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Average shares outstanding (millions) |
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Basic |
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129.5 |
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127.8 |
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|
|
129.2 |
|
|
|
127.5 |
|
Diluted |
|
|
129.5 |
|
|
|
127.9 |
|
|
|
129.2 |
|
|
|
127.6 |
|
PAGE 1
VISTEON CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Millions)
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
June 30 |
|
|
December 31 |
|
|
|
2007 |
|
|
2006 |
|
ASSETS
|
Cash and equivalents |
|
$ |
1,473 |
|
|
$ |
1,057 |
|
Accounts receivable, net |
|
|
1,347 |
|
|
|
1,245 |
|
Interests in accounts receivable transferred |
|
|
551 |
|
|
|
482 |
|
Inventories, net |
|
|
523 |
|
|
|
520 |
|
Other current assets |
|
|
284 |
|
|
|
261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
4,178 |
|
|
|
3,565 |
|
|
|
|
|
|
|
|
|
|
Equity in net assets of non-consolidated affiliates |
|
|
215 |
|
|
|
224 |
|
Property and equipment, net |
|
|
2,790 |
|
|
|
3,034 |
|
Other non-current assets |
|
|
143 |
|
|
|
115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
7,326 |
|
|
$ |
6,938 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS DEFICIT
|
Short-term debt, including current portion of long-term debt |
|
$ |
100 |
|
|
$ |
100 |
|
Accounts payable |
|
|
1,876 |
|
|
|
1,825 |
|
Accrued employee liabilities |
|
|
305 |
|
|
|
323 |
|
Other current liabilities |
|
|
376 |
|
|
|
320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
2,657 |
|
|
|
2,568 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
2,605 |
|
|
|
2,128 |
|
Employee benefits, including pensions |
|
|
674 |
|
|
|
924 |
|
Postretirement benefits other than pensions |
|
|
637 |
|
|
|
747 |
|
Deferred income taxes |
|
|
218 |
|
|
|
170 |
|
Other non-current liabilities |
|
|
363 |
|
|
|
318 |
|
Minority interests in consolidated subsidiaries |
|
|
274 |
|
|
|
271 |
|
|
|
|
|
|
|
|
|
|
Shareholders deficit
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, 130 million and 129 million shares outstanding, respectively) |
|
|
131 |
|
|
|
131 |
|
Stock warrants |
|
|
127 |
|
|
|
127 |
|
Additional paid-in capital |
|
|
3,403 |
|
|
|
3,398 |
|
Accumulated deficit |
|
|
(3,863 |
) |
|
|
(3,606 |
) |
Accumulated other comprehensive income (loss) |
|
|
113 |
|
|
|
(216 |
) |
Other |
|
|
(13 |
) |
|
|
(22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders deficit |
|
|
(102 |
) |
|
|
(188 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders deficit |
|
$ |
7,326 |
|
|
$ |
6,938 |
|
|
|
|
|
|
|
|
PAGE 2
VISTEON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Months Ended |
|
|
Six-Months Ended |
|
|
|
June 30 |
|
|
June 30 |
|
|
|
2007 |
|
|
2006 |
|
|
2007 |
|
|
2006 |
|
Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(67 |
) |
|
$ |
50 |
|
|
$ |
(220 |
) |
|
$ |
53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net (loss) income to net
cash provided from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
116 |
|
|
|
106 |
|
|
|
237 |
|
|
|
208 |
|
Asset impairments |
|
|
13 |
|
|
|
22 |
|
|
|
63 |
|
|
|
22 |
|
Non-cash postretirement benefits |
|
|
8 |
|
|
|
(49 |
) |
|
|
27 |
|
|
|
(72 |
) |
Extraordinary item, net of tax |
|
|
|
|
|
|
(8 |
) |
|
|
|
|
|
|
(8 |
) |
Debt extinguishment gain |
|
|
|
|
|
|
(8 |
) |
|
|
|
|
|
|
(8 |
) |
Equity in net income of non-consolidated affiliates,
net of dividends remitted |
|
|
24 |
|
|
|
10 |
|
|
|
15 |
|
|
|
3 |
|
Non-cash tax items |
|
|
(22 |
) |
|
|
(4 |
) |
|
|
(30 |
) |
|
|
(5 |
) |
Other non-cash items |
|
|
(3 |
) |
|
|
(4 |
) |
|
|
5 |
|
|
|
(4 |
) |
Change in receivables sold |
|
|
(24 |
) |
|
|
(2 |
) |
|
|
(65 |
) |
|
|
(55 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable and retained interests |
|
|
23 |
|
|
|
(11 |
) |
|
|
(82 |
) |
|
|
20 |
|
Escrow receivable |
|
|
(1 |
) |
|
|
|
|
|
|
13 |
|
|
|
24 |
|
Inventories |
|
|
1 |
|
|
|
(20 |
) |
|
|
(22 |
) |
|
|
(19 |
) |
Accounts payable |
|
|
(13 |
) |
|
|
(74 |
) |
|
|
50 |
|
|
|
(173 |
) |
Other |
|
|
91 |
|
|
|
100 |
|
|
|
24 |
|
|
|
90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided from operating activities |
|
|
146 |
|
|
|
108 |
|
|
|
15 |
|
|
|
76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(80 |
) |
|
|
(98 |
) |
|
|
(144 |
) |
|
|
(183 |
) |
Proceeds from divestiture and asset sales |
|
|
83 |
|
|
|
4 |
|
|
|
90 |
|
|
|
11 |
|
Other |
|
|
(1 |
) |
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided from (used by) investing activities |
|
|
2 |
|
|
|
(94 |
) |
|
|
(55 |
) |
|
|
(172 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt, net |
|
|
(6 |
) |
|
|
(103 |
) |
|
|
(4 |
) |
|
|
(373 |
) |
Proceeds from debt, net of issuance costs |
|
|
496 |
|
|
|
805 |
|
|
|
497 |
|
|
|
1,176 |
|
Principal payments on debt |
|
|
(14 |
) |
|
|
(603 |
) |
|
|
(18 |
) |
|
|
(610 |
) |
Repurchase of unsecured debt securities |
|
|
|
|
|
|
(141 |
) |
|
|
|
|
|
|
(141 |
) |
Other, including book overdrafts |
|
|
(33 |
) |
|
|
(30 |
) |
|
|
(31 |
) |
|
|
(9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided from (used by) financing activities |
|
|
443 |
|
|
|
(72 |
) |
|
|
444 |
|
|
|
43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
10 |
|
|
|
13 |
|
|
|
12 |
|
|
|
24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and equivalents |
|
|
601 |
|
|
|
(45 |
) |
|
|
416 |
|
|
|
(29 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents at beginning of period |
|
|
872 |
|
|
|
881 |
|
|
|
1,057 |
|
|
|
865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents at end of period |
|
$ |
1,473 |
|
|
$ |
836 |
|
|
$ |
1,473 |
|
|
$ |
836 |
|
|
|
|
|
|
|
~ ~~~~~~~~ |
|
|
|
~ ~~~~~~~ |
|
|
|
~ ~~~~~~~~ |
|
Page 3
VISTEON CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in Millions)
(Unaudited)
In this press release the Company has provided information regarding non-GAAP financial measures of
EBIT-R and free cash flow. Such non-GAAP financial measures are reconciled to their closest US
GAAP financial measure below.
EBIT-R: EBIT-R represents net income (loss) before net interest expense, provision for
income taxes and extraordinary item and excludes impairment of long-lived assets and net
unreimbursed restructuring charges. Related amounts included in loss from discontinued operations
are reflected in the totals below. Management believes EBIT-R is useful to investors because the
excluded items may vary significantly in timing or amounts and/or may obscure trends useful in
evaluating and comparing the Companys operating activities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Months Ended |
|
|
Six-Months Ended |
|
|
FY 2007 |
|
|
|
June 30 |
|
|
June 30 |
|
|
Estimate |
|
|
|
2007 |
|
|
2006 |
|
|
2007 |
|
|
2006 |
|
|
|
|
|
Net income (loss) |
|
$ |
(67 |
) |
|
$ |
50 |
|
|
$ |
(220 |
) |
|
$ |
53 |
|
|
$ |
(480) - |
(380) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
41 |
|
|
|
38 |
|
|
|
81 |
|
|
|
77 |
|
|
|
175 |
|
Provision for income taxes |
|
|
28 |
|
|
|
17 |
|
|
|
45 |
|
|
|
47 |
|
|
|
95 |
|
Asset impairments |
|
|
13 |
|
|
|
22 |
|
|
|
63 |
|
|
|
22 |
|
|
|
63 |
|
Extraordinary item, net of tax |
|
|
|
|
|
|
(8 |
) |
|
|
|
|
|
|
(8 |
) |
|
|
|
|
Restructuring and other reimbursable costs |
|
|
53 |
|
|
|
12 |
|
|
|
94 |
|
|
|
21 |
|
|
|
145 |
|
Reimbursement from escrow account |
|
|
(53 |
) |
|
|
(12 |
) |
|
|
(94 |
) |
|
|
(21 |
) |
|
|
(133 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT-R |
|
$ |
15 |
|
|
$ |
119 |
|
|
$ |
(31 |
) |
|
$ |
191 |
|
|
$ |
(135)- |
(35) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT-R is not a recognized term under US GAAP and does not purport to be an alternative to net
income (loss) as an indicator of operating performance or to cash flows from operating activities
as a measure of liquidity. Because not all companies use identical calculations, this presentation
of EBIT-R may not be comparable to other similarly titled measures of other companies.
Additionally, EBIT-R is not intended to be a measure of free cash flow for managements
discretionary use, as it does not consider certain cash requirements such as interest payments, tax
payments and debt service requirements.
Free Cash Flow: Free cash flow represents cash flow from operating activities less capital
expenditures. Management believes that free cash flow is useful in analyzing the Companys ability
to service and repay its debt and it uses the measure for planning and forecasting future periods,
as well as in compensation decisions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Months Ended |
|
|
Six-Months Ended |
|
|
2007 |
|
|
|
June 30 |
|
|
June 30 |
|
|
Estimate* |
|
|
|
2007 |
|
|
2006 |
|
|
2007 |
|
|
2006 |
|
|
|
|
|
Cash provided from operating activities |
|
$ |
146 |
|
|
$ |
108 |
|
|
$ |
15 |
|
|
$ |
76 |
|
|
$ |
90 - 190 |
|
Capital expenditures |
|
|
(80 |
) |
|
|
(98 |
) |
|
|
(144 |
) |
|
|
(183 |
) |
|
|
(370 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow |
|
$ |
66 |
|
|
$ |
10 |
|
|
$ |
(129 |
) |
|
$ |
(107 |
) |
|
$ |
(280) - |
(180) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow is not a recognized term under US GAAP and does not reflect cash used to service
debt and does not reflect funds available for investment or other discretionary uses.
|
|
|
* |
|
As of June 30, 2007 Visteon had $92 million of total receivable sales. This represents a $65
million decrease from the $157 million at December 31, 2006. Full year 2007 estimates are based on
receivables sales equal to the December 31, 2006 level. |
Page 4