US: Visteon unveils $233m Q1 profit
- Net income of $233 million
- Product sales of $1.85 billion, up 43%
- Adjusted EBITDA of $161 million
Former Ford parts unit Visteon has announced first quarter net income of US$233m on product sales of US$1.85bn.
"Increased global vehicle production, combined with our ongoing operational improvements and cost-reduction efforts, drove our year-over-year financial improvement," said chairman, CEO and president Donald Stebbins.
"We benefited from aggressive actions taken over the past year to keep our cost structure in line with significantly reduced global volumes. Although in the near term we remain concerned about European production volumes, we're confident that our worldwide engineering and manufacturing footprint positions Visteon to support new global vehicle programs and grow with our customers around the world."
Around 27% of Visteon's first quarter product sales were to Ford and 24% to Hyundai-Kia, with Renault-Nissan and PSA Peugeot-Citroen each accounting for around 7% of product sales.
Europe accounted for 39% of total product sales with Asia representing 35%, North America 20% and South America 6%.
For the first quarter of 2010, total sales were US$1.9bn, including product sales of US$1.85 billion and services revenue of US$58m.
Product sales increased by US$551m, or 43% year-over-year as higher production and new business wins, net of plant divestitures and closures, increased sales by around US$414m.
Foreign currency further increased sales by around US$146m. The company experienced higher sales in each of the major regions in which it operates, reflecting increased production volumes by all customers as vehicle sales rebounded in response to stronger global economic conditions.
Gross margin for the first quarter was US$418m, compared with $45m a year earlier.
Adjusted EBITDA for the first quarter was US$161m, compared to US$22m for the same period a year ago. During the first quarter, Visteon won approximately $141m of business, with more than half generated in Asia.
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