Visteon Reports Second-Consecutive Quarterly Loss
Stock Chart for Visteon Corp (VC)
Visteon Corp. (VC), the auto-parts maker paring units to focus on faster-growing operations in Asia, reported its second consecutive quarterly loss as it revamps operations.
Visteon reported a first-quarter net loss of $29 million, or 56 cents a share, compared with a year-earlier profit of $39 million, or 75 cents. The quarter included $63 million in restructuring costs, including expenses from closing an electronics plant in Spain, Jim Fisher, a company spokesman, said in an e-mail.
The results follow a fourth-quarter deficit of $26 million. Prior to that, the company had recorded four straight profitable quarters after it exited a 16-month bankruptcy in 2010.
Visteon, based in Van Buren Township, Michigan, has been plagued by losses since it was spun off in 2000 by Ford Motor Co. (F) The supplier has expanded business with automakers other than Ford and has narrowed its product offerings.
The company agreed to sell its lighting unit to Varroc Group of India in March for $92 million. The unit, which supplies automotive exterior lights, had revenue of $531 million last year. Visteon Oct. 31 sold a part of its stake in Duckyang Industry Co., an interiors joint venture, and it no longer had a controlling interest.
The Duckyang transaction decreased first-quarter sales by $114 million, Visteon said in today’s statement. Total sales for the quarter slid 7.2 percent to $1.72 billion. The average estimate of two analysts surveyed by Bloomberg was for sales of $1.77 billion.
Visteon also lowered its full-year sales forecast because of paring units and divesting holdings.
Sales this year will be $6.6 billion to $7 billion, Visteon said today in a statement. In February, the company forecast sales of as much as $7.5 billion for the year. Free cash flow will be $5 million to $30 million, compared with a February forecast of $25 million to $50 million, Visteon said today.
Visteon slid 2.8 percent to $48.83 at the close in New York, the biggest drop since April 13. The shares have dropped 2.2 percent this year after falling 33 percent in 2011.
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