Visteon Corp is reported to have swung to a loss in the latest first quarter from year-ago profit due to lower sales to former parent Ford, higher steel costs and price reductions.
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The Associated Press (AP) said the parts maker’s quarterly losses totalled $US188 million, or $1.49 per share, compared with net income of $20 million, or 16 cents per share, a year ago – sales edged up to $4.99 billion from $4.97 billion last year.
AP noted that analysts surveyed by Thomson Financial were looking for the company to post losses of 43 cents per share on sales of $4.79 billion in the latest quarter.
The company reportedly said 2005 results were hurt by lower sales to Ford; higher steel, aluminium, copper and resin costs; price reductions and increased post-retirement benefit costs – these adverse factors were partially offset by non-Ford sales growth, cost efficiencies and lower labour costs.
The Associated Press said Visteon’s Ford revenue for the quarter was $3.3 billion, down $383 million compared with a year ago, due to a 10% reduction in North American production as well as price reductions. The nearly $400 million increase in non-Ford revenue reportedly was due to new business and favourable currency, partially offset by price reductions.
According to the report, Visteon’s non-Ford sales reached $1.7 billion, an increase of 30% over the first quarter of 2004 while non-Ford revenue for the quarter represented 35% of total sales, an 8% increase from the same period in 2004.
