Automotive parts maker and one-time Ford unit Visteon Corp. moved back into profit in the first quarter of 2004 and raised its earnings forecast for the year on expectations of stronger sales and cost cuts, the company said on Thursday.
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According to Reuters, Visteon posted a net profit of $US30 million, or 23 cents per share, compared with a loss of $15 million, or 12 cents per share, a year earlier.
Visteon said in January it expected earnings of 5 cents to 15 cents per share, below what Wall Street analysts had expected, the report noted.
Reuters said the results included after-tax charges of $7 million in the first quarter this year, and $20 million in the first quarter for 2003.
Excluding the charges, Visteon earned $56 million, or 28 cents per share, in the quarter, the company said, according to the news agency. Wall Street analysts had expected Visteon to post a profit of between 7 cents and 25 cents per share, with an average of 13 cents per share, according to Reuters Research.
Reuters said Visteon raised its earnings estimate for 2004 to a profit in the range of $90 million to $140 million, or 70 cents to $1.10 per share, up from its forecast in January of earnings between 50 cents to $1.00 per share. The company also said its forecast includes anticipated charges of up to $50 million for further restructuring, if necessary.
Visteon expects revenues for the year in the range of $18.6 billion and $18.8 billion, including sales to customers other than former parent Ford of more than $5 billion, the report added.
Analysts expect Visteon’s 2004 earnings to range between 20 cents and 80 cents per share, with an average of 51 cents per share, according to Reuters Research.
For the second quarter, Visteon reportedly said it expects net profits in the range of $13 million to $25 million, or 10 cents to 20 cents per share, with revenues in the range of $4.7 billion to $4.8 billion, up from $4.6 billion in 2003.
Analysts expect Visteon to post second-quarter profits between 8 cents and 35 cents per share, with an average of 21 cents per share, according to Reuters Research.
The report said revenues in the first quarter grew to $4.97 billion from $4.70 billion previously, due to growth in sales to carmakers other than Ford, and a favourable impact from exchange rates.
Sales to non-Ford customers grew by $352 million to $1.34 billion, offsetting a drop of $84 million in sales to Ford, Visteon said, according to Reuters. Non-Ford sales represented 37% of total revenues in the quarter.
