Visteon Corporation booked a net loss of $201m, or $1.55 per share, on product sales up 27% to $1.89bn in the second quarter of 2010. The net loss included a $122m charge for post bankruptcy protection interest expenses and a $75m charge for changes to US employee retirement plans. In Q2 2009 the supplier reported a net loss of $112m, (87 cents a share) on sales of $1.48bn.
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Adjusted EBITDA improved to $166m from $93m in Q2 2009.
First half sales rose 32% to $3.85bn and the company booked net income of $32m, or 25 cents per share, compared with a net loss of $110m, or 85 cents per share, during the first half of 2009. Adjusted EBITDA for the first half of 2010 was $327m, compared with $95m in H1 2009.
“The increase in global vehicle production volumes combined with our on-going actions to improve our operations and our cost structure continues to drive year over year financial improvement,” said chairman and CEO Donald Stebbins. He added that Visteon was not expecting global vehicle production in the second half “to approach first half levels”.
About 30% of Q2 product sales were to Hyundai-Kia and 27% to one time owner Ford with PSA Peugeot-Citroen and Renault-Nissan accounting for around 7% and 6%, respectively. Asia accounted for 39% of total product sales – up 35% year on year – with Europe taking 36%, North America 18% and South America 7%.
Visteon obtained US bankruptcy court approval of its restructuring plan on 28 June and put this to a stakeholder vote. Preliminary results indicated it has been accepted, the company said.
Stebbins said: “We are extremely pleased to have our plan supported by all [parties]. This marks an important milestone in Visteon’s successful emergence from our Chapter 11 [bankruptcy] process.”
