From the Detroit News
VAN BUREN TOWNSHIP, MI -- Visteon Corp. will delay a required financial filing for the second quarter while it sorts out accounting problems, but said it remains on schedule to complete a massive restructuring with Ford Motor Co. by Sept. 30.
Visteon said it uncovered $77 million in expenses that should have been recorded in previous earnings reports.
The expenses -- $44 million in freight expenses, $27 million in material surcharges and $6 million in other supplier expenses -- were found as part of an independent audit launched in May after allegations of improper conduct were leveled against a former senior accounting employee.
If the probe produces more items, the Van Buren Township, MI-based parts maker said it could be forced to restate prior financial reports.
The company has delayed an SEC filing for the first quarter, and disclosed Monday it won't have a second quarter filing ready by the Aug. 9 deadline.
For the first quarter 2005, Visteon reported a net loss of $188 million, compared to net income of $20 million for the same period in 2004. First quarter results could change, Visteon said.
Visteon, which was spun off from Ford Motor Co. in 2000, also said that its restructuring is on track. The supplier's proposed transfer of 24 North American plants to a Ford-controlled company will be complete by Sept. 30.
Joe Farricielli, vice president of California-based Imperial Capital, said the buyback deal should help Visteon, but it won't be a silver bullet for the supplier's troubles.
"The profitability is not necessarily a given now that they're shedding these operations."
2005 The Detroit News. All Rights Reserved.
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