Visteon Corp. on Wednesday said it swung to a loss in the first quarter as increased demand in Europe and Asia for its parts was offset by lower production volumes from former parent Ford.
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Visteon reported a Q1 loss of US$153m, or US$1.19 a share, reversing a year-ago profit of US$3m, or 2 cents a share. Analysts polled by Thomson Financial had forecast a loss of 51 cents a share.
Total sales slipped to US$2.93bn from US$2.96bn a year earlier.
Visteon said that Ford sales slipped 12% to US$1.18bn as the former parent cut production in North America.
Visteon said it has completed its salaried reduction program that was first disclosed in October, eliminating roughly 900 positions.
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By GlobalDataThe company said it now projects a 2007 loss, excluding restructuring costs and other items, in a range of US$35m to US$135m on anticipated product sales of about US$10.7bn.
Visteon said it is looking for production volumes for the second quarter to come in “significantly lower” than a year ago for a number of its key customers.
Citigroup analyst Jon Rogers said in a note to clients: “We remain optimistic that restructuring should build the foundation for a more competitive Visteon.”
“However, lower Ford production, more aggressive OEM sourcing strategies, and cash burn poses risk.”
