US: Facilities transfer reduces Visteon sales, loss
Visteon Corporation on Tuesday reported third quarter 2006 results including a net loss of $177m, or $1.38 per share, an improvement over third quarter 2005's net loss of $207m, or $1.64 per share.
Sales were $2.48bn compared with $4.12bn a year ago.
This was due primarily to the 1 October 2005 transaction with Ford that transferred 23 Visteon facilities to Automotive Components Holdings, LLC (ACH), a Ford-managed business entity. Services sales for third quarter 2006 were $133m; no sales for services were recorded in third quarter 2005.
"Our third quarter results came under pressure due, in part, to significant reductions in vehicle production by a number of our customers. We are taking aggressive actions to resize the business in light of these declines, and we expect conditions to continue to be challenging for the remainder of the year and into 2007," said chairman and chief executive officer Michael Johnston.
For the first nine months of 2006, product sales were $8.16bn with more than half generated from customers other than Ford, suggesting continued progress in diversifying Visteon's customer base.
Sales for the same period a year ago totalled $14.11bn, of which non-Ford sales were 35%.
Product sales were lower by $5.95bn, primarily due to the transfer of certain plants to ACH in October 2005. Services sales for the first nine months of 2006 were $416m; no sales for services were recorded in the first nine months of 2005.
Visteon's net loss of $124m 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, both of which were recognised in the second quarter of 2006.
For the first nine months of 2005, Visteon reported a net loss of $1.61bn.
Visteon said the fourth quarter of 2006 "is expected to be challenged by low production volumes from several key customers globally".