Contact Us

Home> International News> News detail

US: Visteon posts quarterly and full-year losses

From| February 17,2007

Visteon Corporation has reported a net loss of $39m, or $0.30 per share, on total sales of $2.84bn in the fourth quarter of 2006. For the full year, the components maker reported a $163m net loss, or $1.28 per share, on total sales of $11.4bn.

For fourth quarter 2005, Visteon reported net income of $1.3bn, or $10.25 per diluted share, which included a gain of $1.8bn related to the transfer of two Automotive Components Holdings (ACH) manufacturing facilities to Ford in early 2006, $335m of non-cash asset impairments, $34m of restructuring expenses and other costs.

Visteon's net loss of $163m for full year 2006 was an improvement of $107m over 2005's net loss of $270m, or $2.14 per share, despite lower sales levels.

Fourth 2006 quarter product sales were $2.7bn, essentially unchanged from fourth quarter 2005, as favourable currency and increased sales in Asia were offset by lower production volumes, principally in North America.

Product sales to non-Ford customers of $1.62bn rose 13%, or $188m, over fourth quarter 2005 and represented 60% of total product sales. Services sales of $131m decreased $33m from the same period in 2005, reflecting the transfer of about 1,000 Visteon salaried employees associated with transferring the two ACH facilities to Ford.

The Q4 net loss of $39m included reimbursable restructuring expenses and other costs of $71m and a net tax benefit of $32m.

Sales for full year 2006 included product sales of $10.9bn and services sales of $547m.

Product sales to non-Ford customers totalled $6.0bn, or 55% of total product sales. Sales for the same period a year ago totaled $17.0bn, including product sales of $16.8bn and services sales of $164m. Of the total product sales for 2005, 62% were to Ford and 38% were to non-Ford customers.

The transfer of 23 North American facilities on 1 October, 2005 as part of the ACH transactions decreased year-over-year product sales by $6.1bn.

The net loss for full year 2006 included $22m of non-cash asset impairments related to the company's restructuring actions and an extraordinary gain of $8m associated with the acquisition of a lighting facility in Mexico.

Restructuring expenses for full year 2006 were $95m.

The net loss of $270m for full year 2005 included asset impairments of $1.5bn, a $1.8bn gain on the ACH transactions, and $26m of restructuring expenses, partially offset by $51m of reimbursements.

In connection with the company's salaried reduction programme announced in October 2006, about 800 posts had been identified for axing by 31 December. Restructuring expenses in the fourth quarter of 2006 for these salaried reductions were $19m. Visteon expects to complete the programme by the end of March and anticipates achieving annual savings of about $65m.

Visteon also booked $20m of restructuring expenses and $8m of pension curtailment losses during the fourth quarter of 2006 related to the company's plan to close a US climate control manufacturing facility in 2007 in response to lower sales volumes and cost pressures.

The company said 2007 is expected to be a challenging period for the automotive industry with anticipated production declines at some key customers.

Visteon currently estimates that its 2007 full year EBIT-R will be in the range of breakeven to a loss of $100m on anticipated 2007 product sales of $11.1bn.

All Rights Reserved. Do not reproduce, copy and use the editorial content without permission. Contact us:

Install Gasgoo APP

Anytime and anywhere to know the dynamics of China's auto industry

Hot Auto Products| e-Catalog| Auto Products Directory| Auto Parts Manufacturers|

Gasgoo Site: Automotive News| 中文站| 汽车资讯| 出口供应商| 汽车社区|

Copyright Notice © 2016 Corporation and its licensors. All rights reserved.