Visteon Corporation on Wednesday reported a second quarter net loss of $US67m or $0.52 per share, which included non-cash asset impairments of $13m, on sales of $2.97bn. The supplier made net income of $50m, or $0.39 per share, a year ago.
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Sales to Ford fell 16% to $1.11bn, reflecting lower North American production volumes, pricing, sourcing and product mix. Sales to other customers increased 15% to $1.72bn and took 61% of the mix.
The first half-year saw a net loss of $220m, or $1.70 per share versus net income of $53m, or $0.41 a share, last year ago. Half year results for 2006 included $22m of non-cash asset impairments and an extraordinary gain of $8m and Visteon also booked a cumulative benefit of $72m related to the relief of post-employment benefits for Visteon salaried employees associated with two ACH manufacturing facilities transferred to Ford.
First half sales were $5.86bn vs $5.87bn in 2007. Ford sales declined 14%, to $2.25bn and, despite lower sales to Nissan in North America due to production volumes, product sales to other customers increased 12% to $3.34bn accounted for 60%.
“At the mid-point of our three-year improvement plan, we have demonstrated progress across each pillar of the plan,” said chairman and chief executive officer Michael Johnston. “More than half of the restructuring actions are complete, and several others are well on their way to completion. Even with significant reductions in customer volumes in North America, we are making solid progress on improving our base operations through improved quality and safety and significantly reduced administrative costs. We are also diversifying our sales and growing the business, particularly outside of North America.”
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By GlobalDataVisteon has now completed 16 of the 30 targeted restructuring activities and now has over half its manufacturing personnel and a third of engineering staff in lower cost countries. The company is on track to have 75% of its manufacturing and 50% of engineers there by 2009.
“The second half of 2007 will continue to be a challenge as we face low production on a number of important platforms, particularly in North America,” Johnston said. “However we expect to show significant year-over-year improvement in our financial performance compared to the back half of 2006 as we benefit from the restructuring actions we have taken and other cost- reduction efforts.”
