Visteon reduced its second quarter net loss by US$25m and improved operating income in the second quarter of 2008.
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Nonetheless, it posted a net loss of $42m, or $0.32 a share, on total sales of $2.905bn, 76% of which now come from outside North America. This compared with net loss of $67m, $0.52 a share, on sales of $2.974bn a year ago.
The Q2 2008 results included $18m of unreimbursed restructuring and other qualifying costs, $11m of asset impairments and $49m of income tax; a year ago there was $11m of asset impairments and $28m of income tax .
“Our second quarter and first half results demonstrate Visteon’s geographic diversification, as we improved our financial performance despite a difficult North American market,” said president and CEO Donald Stebbins.
“We expanded gross margins by almost 50% and increased operating income nearly five-fold due to steady progress on our restructuring plan, our focus on reducing overhead costs and our drive to improve operational efficiency. We have also addressed our UK manufacturing losses through divestitures and commercial arrangements.”
Divestitures and plant closures decreased product sales by $222m, which was partially offset by favourable currency of $163m. Lower production volumes in North America were offset by increases in Europe and Asia, reflecting Visteon’s wider geographic diversification.
Second quarter operating income of $53m was an improvement of $44m from the same period in 2007.
For the first six months of 2008, Visteon reduced its net loss by $73m, $0.56 a share, to $147m, $1.14 a share. Total sales for first half 2008 of $5.765bn were lower by $97m.
Visteon has adjusted its full year sales expecation down $100m to $10.0bn.
