Losses increased at Visteon Corporation in the second quarter as industry challenges continue to dog sales.
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The supplier booked a net loss of US$112m on sales of $1.57bn in Q2 2009 versus a net loss of $42m on sales of $2.91bn a year ago.
Adjusted EBITDA was $73m compared with $188m in 2008.
However, it wasn’t all bad news with the second quarter showing improvements in sales, gross margin and adjusted EBITDA compared with the first three months of 2009.
The company said this reflected continued benefits from restructuring and cost saving along with modest increases in vehicle production.
“While we have seen signs of sequential improvement in vehicle production, the industry remains extremely challenged in the near-term,” said chairman and CEO Donald Stebbins. “Despite the difficult operating environment, our second-quarter results demonstrate that we have been able to take the necessary actions to serve our customers, preserve capital and position our global business for future success.”
The company said about 29% of second quarter product sales were to one time parent Ford while Hyundai-Kia accounted for 28%, Renault-Nissan 9% and PSA/Peugeot-Citroen 7%.
Europe accounted for about 39% of total product sales, with Asia representing 35%, North America 20% and the balance in South America.
Total first half sales of $2.92 billion were lower by $2.85 billion, or 49% compared with the same period a year earlier. The first half net loss was $110m, compared with a net loss of $147m during H1 2008. Adjusted EBITDA was $95m compared with $354m.
