Auto-parts manufacturer Visteon Corp. expects to report a loss of $1.2 billion in its second quarter after reducing the value of assets it will transfer to Ford Motor Co.
Visteon has labored to turn profits since spinning off from Ford in 2000, and in a deal announced earlier this summer, Ford agreed to help the company restructure by taking back 24 unprofitable North American plants. The deal is expected to close by the end of September. Visteon also announced last week that it might have to restate previous quarterly results after finding $77 million of accounting errors for freight expenses, material surcharges and supplier expenses.
The company reported a preliminary loss of $1.2 billion, on sales of $5 billion, for the second quarter. Sales to customers other than Ford amounted to $1.8 billion for Visteon, about 36 percent of its total sales. Sales to Ford decreased more than 7 percent to $3.2 billion, reflecting lower production levels in North America and Europe.
Visteon said it would record a charge of $900 million as it reduces the value of fixed assets related to the 24 facilities being transferred to Ford. Ford will also take on the salaries of more than 17,000 Visteon workers along with the plants.
