Visteon Corp is reported to have swung to a loss in the latest first quarter from year-ago profit due to lower sales to former parent Ford, higher steel costs and price reductions.
Go deeper with GlobalData
The Associated Press (AP) said the parts maker’s quarterly losses totalled $US188 million, or $1.49 per share, compared with net income of $20 million, or 16 cents per share, a year ago – sales edged up to $4.99 billion from $4.97 billion last year.
AP noted that analysts surveyed by Thomson Financial were looking for the company to post losses of 43 cents per share on sales of $4.79 billion in the latest quarter.
The company reportedly said 2005 results were hurt by lower sales to Ford; higher steel, aluminium, copper and resin costs; price reductions and increased post-retirement benefit costs – these adverse factors were partially offset by non-Ford sales growth, cost efficiencies and lower labour costs.
The Associated Press said Visteon’s Ford revenue for the quarter was $3.3 billion, down $383 million compared with a year ago, due to a 10% reduction in North American production as well as price reductions. The nearly $400 million increase in non-Ford revenue reportedly was due to new business and favourable currency, partially offset by price reductions.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAccording to the report, Visteon’s non-Ford sales reached $1.7 billion, an increase of 30% over the first quarter of 2004 while non-Ford revenue for the quarter represented 35% of total sales, an 8% increase from the same period in 2004.
