Visteon estimates upped

On 27 March Merrill Lynch said it had raised its earnings estimates for auto parts maker Visteon Corp. but warned that the company“s margins were still lagging behind those of its peers. Merrill Lync…

On 27 March Merrill Lynch said it had raised its earnings estimates for auto parts maker Visteon Corp. but warned that the company“s margins were still lagging behind those of its peers. Merrill Lynch analyst John Casesa announced his higher estimates a day after Visteon, the world“s No. 2 auto parts maker, forecast that first-quarter earnings would “about break even,” excluding restructuring charges. Visteon also forecast full-year earnings between break-even and US$ 50 million, on revenues of US$ 17.5 billion to US$ 17.8 billion. Casesa said he was raising his first-quarter earnings estimate for Visteon from a loss of 7 cents a share to break-even, and lifting his full-year estimate to break-even from a loss of 7 cents. “We believe that Visteon“s slightly improved margin is more a function of better fixed cost absorption than cost-cutting efforts,” Casesa said. “Returning to break-even is certainly a step in the right direction for Visteon, but the company still has a great deal of work to do to bring margins in line with other suppliers.”