Visteon reports $115 million fourth-quarter loss

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Visteon reports 115 million fourth-quarter loss

• Monday, January 31, 2005 BY JOHN
  PORRETTOASSOCIATED PRESS

http//www.freep.com/news/latestnews/pm2580_200501
31.htm
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Visteon Corporation

• Auto supplier Visteon Corp., the former Ford
  Motor Co. division, reported a preliminary loss
  of 115 million in the fourth quarter, pulled
  down by continued high operating costs and lower
  vehicle production at Ford.
• Visteon, based in Van Buren Township, Mich.,
  cautioned Monday it found errors related to its
  accounting for retiree health care and pension
  benefits and income taxes. It said it was
  consulting with its accounting firm,
  PricewaterhouseCoopers LLP, to determine if any
  adjustments or corrections are necessary.
• The fourth-quarter loss amounted to 92 cents a
  share, compared with a restated loss of 829
  million, or 6.60 a share, a year ago when
  Visteon absorbed 720 million in charges related
  to a restructuring of its operations.

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Revenues and Costs

• For full-year 2003, Visteon reported a restated
  net loss of 1.2 billion or 9.46 per share.
• Revenue last year totaled 18.7 billion, up 1
  billion compared with 2003, despite a 460
  million decline in Ford revenue. Full-year
  non-Ford revenue reached a record 5.7 billion,
  up 36 percent over 2003.
• Full-year non-Ford sales represented 30 percent
  of total revenue.
• Visteon said it continues to discuss with Ford
  "strategic and structural changes" to its U.S.
  business.

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The Economics

• What is the purpose of a firm?
• To make profits.
• Why didnt Visteon make profits?
• How do accountants figure in this?
• When the firm loses money does it go out of
  business?
• Why or Why Not?
• Is this a competitive market?

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Does

Are they one firm, or two?