US: Visteon net profit up 25% in 2012
By Dave Leggett | 28 February 2013
Visteon has announced that it earned US$100m in 2012, up from USD80m the pevious year, as it benefited from higher volumes in North America and Asia.
Visteon said that it had new business wins of USD1.2bn for 2012, including USD750m of incremental new wins and USD450m of rewin business.
However, Visteon reported a dip to full-year sales due to the divestment of Duckyang Industry Co. Ltd. and unfavourable currency. Visteon reported full-year sales of USD6.86bn, 9% off 2011's total.
For the fourth quarter of 2012, Visteon reported net income of USD39m compared with a net loss of USD26m the previous year.
"We delivered a strong finish to a solid year that was highlighted by operational improvements, an impressive level of new business wins, and completion of the majority of the Halla-Visteon climate consolidation that has long been desired by our customers," said Tim Leuliette, president and CEO.
"Visteon is a stronger company than a year ago - with a global, low-cost manufacturing footprint; a solid cash position, a conservative debt profile; and a strong business backlog. We continue to drive down administrative costs, improve our operational structure and execute all facets of our strategy to maximize value for customers and shareholders."
Sales of USD1.82bn for the fourth quarter of 2012 increased from USD1.73bn for the same quarter a year earlier. Hyundai-Kia accounted for approximately 34 percent of Visteon's fourth-quarter sales, with Ford Motor Company representing 27 percent, Renault-Nissan 7 percent and PSA Peugeot-Citroen 4 percent. On a regional basis, Asia accounted for 46 percent of total product sales, up slightly from 44 percent for the same period last year, while Europe represented 30 percent - down from 35 percent a year earlier. North America represented 18 percent of total product sales for the fourth quarter of 2012, compared with 15 percent during the same quarter last year, and South America accounted for 6 percent, about even with the fourth quarter of 2011.
Q4 results by segment
Climate sales increased by USD161m during the fourth quarter of 2012, compared with the same quarter last year. Higher production volumes and net new business increased sales by USD$162m, primarily attributable to volume increases in Asia and North America, Visteon said.
Electronics sales increased USD11m during the fourth quarter, compared with the same period in 2011. Vehicle production volume increases in North America, partially offset by the impact of weakened economic conditions in Europe that reduced production volumes, resulted in a USD25m sales increase. Unfavourable currency, driven by the weakening of the euro, decreased sales by US10m.
Interiors sales decreased during the quarter by USD89m, compared with the fourth quarter of 2011. Sales decreased USD74m due to the deconsolidation of Duckyang. Sales were further decreased by lower vehicle production volumes, primarily in Europe, of USD17m. Unfavourable currency, primarily related to the euro, decreased sales by an additional USD17m, Visteon said.
2013 Outlook
Visteon said it expects to post 2013 sales of USD7.3bn to USD7.5bn (USD 6.86bn in 2012).
Sectors: Components, Financial
Companies: Visteon, Hyundai, Kia, Ford, Renault, Nissan, PSA, Peugeot, Citroen
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