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DETROIT -- Visteon Corp. said Tuesday that it doesn't expect to hit financial targets outlined Aug. 1, as production cuts by U.S. auto makers continue to wreak havoc on suppliers. Van Buren Township, Mich.-based Visteon said it expects second-half product sales to be about 10 percent lower than first-half product sales of $5.7 billion.Visteon on Aug. 1 said for all of 2006, it expected earnings before interest, taxes and restructuring charges to be between $170 million and $200 million. It also expected free cash flow of $50 million.The company now says it won't meet its financial targets. It joins Lear Corp., TRW Automotive Holdings Corp. and BorgWarner Inc. in reducing 2006 financial estimates due to the deep Big Three production cuts.General Motors Corp., Ford Motor Co. and DaimlerChrysler AG's Chrysler Group all are cutting North American production significantly in the second half. High fuel prices have customers turning away from pickup trucks and sport-utility vehicles to cars and smaller crossover-utility vehicles.Top Visteon executives will make a presentation later Tuesday morning at the J.P. Morgan Paris Auto Show Investor Conference, which will be broadcast on the Web. In supporting materials on Visteon's Web site, the company said that "volume related layoffs" are under way and that nonrecurring expenses are expected in the second half of the year.Visteon will discuss actions to respond to lower customer volumes, its three-year improvement plan and an update to its outlook for 2006 when it releases third-quarter results in late October.The company is in the midst of a three-year restructuring plan that could affect as many as 23 unprofitable and noncore plants world-wide. Visteon also is moving more operations to countries with lower labor costs.Visteon fell 4 percent, or 34 cents, to $8.11 in morning trading on the New York Stock Exchange.
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