DETROIT -- Visteon Corp. says that revenue for 2008 and the fourth quarter plunged more than expected, and that it is expanding its cuts to employee benefits.
The suburban Detroit supplier of lighting, interiors, electronics and climate controls has been bludgeoned by production cuts in North America, particularly those at its largest customer and former parent, Ford Motor Co. Ford accounted for 39 percent of Visteons business in 2007.
The supplier now expects to post revenue of $9.1 billion for 2008, about $400 million less than its previous forecast. That would be a drop of about $2.2 billion, or 19.3 percent, from $11.27 billion in 2007.
Visteon also said Tuesday that it expects fourth quarter 2008 revenue to be $1.55 billion, down $1.3 billion -- or more than 45 percent -- from the same period of 2007.
At the end of 2008, Visteon had $1.18 billion in cash, including $75 million drawn from its main U.S. credit line. It also had $2.76 billion in debt, according to its preliminary 2008 financial statement issued Tuesday.
In an expansion of cost-cutting measures announced earlier this month, Visteon is suspending 401(k) matching contributions and employee salary increases for 2009, cutting other employee benefit programs and reducing hiring.
The company already had gone to a four-day workweek for about 2,000 salaried employees in suburban Detroit and cut the base salaries of those employees by 20 percent.
The expansion of cost-cutting efforts in January came after Visteon said in October 2008 it planned to cut 800 salaried employees globally. The cuts are expected to be completed in the first quarter and save the company about $60 million annually.
Visteons stock today was trading at 31 cents a share as of 2:48 p.m. EST, down 16 percent. The New York Stock Exchange told Visteon in November that it could lose its exchange listing because the companys stock had fallen below the minimum $1 a share trading price requirement for 30 consecutive trading days.
Visteon has not posted an annual profit since it was spun off by Ford in 2000.
The company ranks No. 16 on the Automotive News list of the top 100 global original-equipment parts suppliers with worldwide sales to automakers of $10.72 billion in 2007.