Visteon Falls After Reducing 2012 Sales Forecast
Visteon Corp. (VC), the auto-parts maker focusing on growing Asian operations, fell the most since emerging from bankruptcy in 2010 after lowering its annual forecasts for sales and profit.
Visteon fell 12 percent to $28.61 at the close in New York, its biggest drop since leaving bankruptcy in September 2010. The shares have plunged 43 percent this year after dropping 33 percent in 2011.
The company today lowered its annual forecasts, citing currency and declining vehicle production in Europe and other regions. Sales this year will be $6.6 billion to $6.8 billion, compared with a May forecast of as much as $7 billion. The average estimate of five analysts in a Bloomberg survey was for 2012 sales of $6.86 billion.
Visteon, since exiting bankruptcy, has been shedding lower- margin revenue in vehicle interiors and lighting to focus on faster-growing operations in Asia. Visteon’s $29.12 closing price on July 24 was its previous post-bankruptcy low after its efforts to buy the remaining 30 percent of Halla Climate Control Corp. (018880) were blocked by South Korea’s biggest institutional investor, the National Pension Service.
Visteon said it expects full-year adjusted earnings before interest, taxes, depreciation and amortization of as much as $620 million. In May, it forecast as much as $660 million.
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