Visteon Sees Weak 4Q Product Sales; Cuts 401(k) Contributions

   DOW JONES NEWSWIRES 
 

Visteon Corp. (VC) expects fourth-quarter product sales volume to fall from a year ago amid lower global vehicle production and said it would suspend its 401(k) matching contributions and salary increases.

The auto-parts supplier expects product sales for the quarter to be about $1.55 billion, a 43% drop from a year ago, amid lower vehicle production by Visteon's global customers.

Visteon said it is on track to complete its 800 global job cuts, which were first announced in October, by the end of the first quarter, with annual savings of $60 million expected upon completion.

For January, Visteon will adopt a four-day workweek for about 2,000 of its employees, along with a commensurate 20% reduction in salaries. Other cost-cutting efforts include suspending 401(k) matching contributions and salary increases for 2009.

Visteon is the latest company to cut its employee retirement contributions. FedEx Corp. (FDX), Starbucks Corp. (SBUX) and Motorola Inc. (MOT) also eliminated or suspended their 401(k) contribution offerings.

Last month, the company withdrew its 2008 guidance in light of bigger-than-expected declines in global vehicle production and industry uncertainty.

The quarter's results are expected on Feb. 25.

Shares were even in after-hours trading at 37 cents.

-By John Kell, Dow Jones Newswires; 201-938-5285; [e-mail]

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