Tier one supplier Visteon was back in the black in the third quarter of 2011, reporting net income of US$41m, or 79 cents a share, on sales of up about 20% to $2.04bn. That contrasted with the net loss of $140m on sales of $1.70bn booked in the third quarter of 2010. Adjusted Q3 EBITDAwas $166m versus $149m in 2010.

“In each of our four product lines and in every region where we operate, our third-quarter sales were higher than a year ago,” said chairman, CEO and president Donald Stebbins.

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“In addition, our year-over-year profitability continues to strengthen as we generate solid new business wins in both developed and emerging markets.”

Visteon said it had won substantial new business during the first nine months of 2011, with nearly half to be manufactured in Asia. The new contracts are expected to generate annual sales of $865m in future years, a significant increase when compared with full-year 2010 new business of $606m.

The supplier said the 20% boost in Q3 product sales was due to higher production volumes at all major customers plus favourable exchange rates. Hyundai Motor accounted for 32% of third quarter sales, with Ford representing 26%, Renault-Nissan 8% and PSA Peugeot-Citroen about 5%.

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By region, Asia accounted for 44% of total product sales, while Europe represented 33%, North America 17% and South America 6%.

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Product gross margin for the third quarter of 2011 was $148m, up $109m compared with $39m in the third quarter 2010, which included a $111m one-off charge related to employee benefit plans. Benefits from higher production volumes and favourable currency rates were more than offset by the impact of higher depreciation and amortisation resulting from fresh-start accounting and higher costs, including $7m of employee-related costs associated with a plant closure in Europe.

Third quarter non-consolidated affiliate profit contribution was $43m compared with $35m in 2010, up 23%. Yanfeng Visteon Automotive Trim Systems and related affiliates contributed $40m, an increase of $8m.

Visteon also wrote its nine-month results in black. Net income of $106m, or $2.04 per share, compared with the net loss of $108m in 2010 and the 2011 result included a loss on debt extinguishment of $24m associated with the successful debt refinancing completed in April, and $18m of net restructuring charges related mostly to the European plant closure. Adjusted EBITDA was $526m versus $476m and total product sales of $6.19 billion were up $751m, or 14%.

Visteon expects full-year 2011 sales of $8.0bn-$8.2bn and adjusted EBITDA of $660m-$680m.

“We are reaffirming our sales and EBITDA guidance for the year,” added Stebbins. “We believe global vehicle production will continue its upward momentum and we’re confident in our ability to keep winning profitable new business. Auto manufacturers are showing they value our ability to bring differentiating technology to vehicles and to support them in all regions.”