Visteon has announced net income of $72 million for the second quarter or $0.56 per share – in line with consensus expectations. In the second quarter of 2001, Visteon posted a net loss of $40 million or $0.31 per share, including a $100 million after-tax restructuring charge. Excluding the restructuring charge Visteon earned $60 million or $0.46 per share in the Second Quarter of 2001.
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“Our results reflected stronger North American production volumes and continued solid cost performance,” said Pete Pestillo, Chairman and Chief Executive Officer. “We are particularly pleased with the $850 million in new business we’ve won this year from new customers.”
Visteon has also announced a restructuring of European manufacturing operations, which Pestillo said would significantly improve Visteon’s cost base and ability to win new business.
Second quarter 2002 sales totalled $5.0 billion, compared with $4.9 billion in the second quarter of 2001. The increase compared with a year ago mainly reflects new business and stronger production volumes in North America. That is offset partially by price reductions provided to Visteon customers and the divestiture of Visteon’s restraint electronics business. Non-Ford sales during the Second Quarter 2002 increased 9% to over $900 million and represent 18% of total sales.
Visteon sales for the first half of 2002 totalled $9.5 billion, down $120 million from the same period a year ago. The decline was down to a reduction in Ford revenue of $206 million, offset partially by an $86 million increase in Non-Ford sales.
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By GlobalDataVisteon said that it had won more than $650 million in net new Non-Ford business during the quarter, including substantial wins with Nissan, General Motors, DaimlerChrysler, Volkswagen, PSA Peugeot Citroen and Renault. During the first half of 2002, the company says it has won more than $850 million of net new Non-Ford business.
Visteon announced that it is implementing a comprehensive restructuring plan in Europe. Under the plan, Visteon and its unions in Europe have committed to restructuring actions concerning manufacturing operations in the UK, Germany and France. The plan seeks to improve the company’s cost base in Europe, allowing it to be more competitive and improve financial results in the future.
Implementation of the plan will begin in the second half of this year and Visteon forecasts that it will generate ongoing annual pre-tax savings of about $100 million by 2004.
Visteon also projected full year net income of $50-80 million, excluding special items. Full year net income, including previously announced and new restructuring actions as well as the Q1 $265 million writeoff of goodwill, is projected to be a loss of $310-350 million.
For the third quarter of this year, Visteon projected a net loss of $30-45 million excluding special items, based on seasonally lower Q3 volumes. Visteon’s biggest customer, Ford, has already warned that it will make a Q3 loss for the same reason.
