Visteon Drops After Reporting Quarterly Loss: Detroit Mover
Visteon Corp. (VC), the auto-parts maker shopping two of its four units to focus on faster-growing operations in Asia, slid as much as 3.6 percent after reporting a quarterly loss when analysts estimated a profit.
Visteon fell 0.6 percent to $53.23 at 10:35 a.m. New York time, after reaching $51.65, the biggest decline since Jan. 11. Before today, the shares gained 7.2 percent this year after falling 33 percent in 2011.
Visteon reported a fourth-quarter net loss of $26 million, or 51 cents a share, compared with a year-ago profit of $86 million, or $1.66 a share. The quarter included a $66 million noncash writedown of Visteon’s lighting unit, the company said in a regulatory filing. Excluding the writedown, the average estimate of four analysts surveyed by Bloomberg was for a profit of 79 cents a share.
Visteon is in talks with Varroc Group of India about a sale of the unit, three people familiar with the sales process said Feb. 17. The unit may sell for less than its net worth, the people said at that time. Visteon, which exited bankruptcy in 2010 after 16 months, wants to divest its lighting and interiors units to other suppliers, said the people, who asked not to be identified because the plans are private.
Sales fell 1.5 percent to $1.86 billion. The company, based in Van Buren Township, Michigan, on Oct. 31 sold a part of its stake in Duckyang Industry Co., an interiors joint venture, and it no longer had a controlling interest. That move decreased fourth-quarter sales by $83 million. The average estimate of three analysts was for sales of $1.89 billion.
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