Visteon has posted a fourth quarter net loss of US$328m on product sales of $1.55bn.
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The fourth quarter 2008 net loss included a non-cash asset impairment charge of $200m for long-lived assets used in the interiors business.
Visteon reported a net loss of $43m on sales of $2.9bn in Q4, 2007.
For full year 2008, Visteon posted a net loss of $663m on sales of $9.5bn compared with a net loss of $372m on sales of $11.3bn for full year 2007.
“Visteon’s financial results for the fourth quarter 2008 were significantly affected by the global economic slowdown as automakers quickly reduced production levels in nearly every market,” said chairman and CEO Donald Stebbins.
Visteon said Q4 sales were more diversified than in any previous quarter. Approximately 30% were to former owner Ford while Hyundai-Kia accounted for 28%. Renault-Nissan and PSA/Peugeot-Citroen each accounted for about 6%. On a regional basis, Europe and Asia Pacific each accounted for about 35% with North America accounting for 22% and the balance in South America.
Product gross margin for fourth quarter 2008 was negative $10m, compared with $201m a year earlier.
“In view of volatile macro-economic and industry conditions, Visteon is not providing guidance for future periods,” the supplier said.
“The continued downturn in the global automotive industry, combined with restrictive credit markets, has had and is expected to have an adverse impact on the company’s financial results, cash flows, and liquidity.
“As a result, Visteon cannot assure that it will remain in compliance with the terms of its outstanding debt instruments [and] continues to explore options to address future liquidity needs, including administrative reductions, delaying capital expenditures, curtailing, eliminating or disposing of substantial assets or operations, or undertaking other significant restructuring measures.”
