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US: Visteon reduces Q3 loss

By just-auto.com editorial team | 28 October 2009

Visteon Corporation has reported a net loss of US$38m, or 29 cents per share, on total sales of $1.73bn, an improvement on the Q3 2008 net loss of $188m, $1.45 a share, on sales of $2.12bn.

Adjusted EBITDA was $125m versus $5m in third quarter 2008.

"For the third straight quarter, Visteon's product sales, gross margin and adjusted EBITDA improved sequentially, reflecting continued benefits from restructuring and cost-saving actions along with increases in OEM vehicle production," the partsmaker said in a statement.

Third quarter product sales to Ford and Hyundai-Kia each accounted for 27% of total product sales. Renault-Nissan and PSA Peugeot Citroen accounted for about 10% and 6% of sales, respectively. On a regional basis, Asia accounted for about 36% of total product sales, with Europe representing 35%, North America 22% and the balance in South America.

Product sales decreased by about $340m, or 17%, year on year to $1.67bn as the impact of foreign currency and divestitures and facility closures reduced sales by about $130m and $90m, respectively. Lower production, net of new business, further reduced sales by about $90m. Aside from the Asian region where sales were largely unchanged from the prior year, Visteon experienced lower sales in all the other major regions in which it operates, reflecting decreased customer production volumes in response to weak global economic conditions.

Gross margin for third quarter 2009 was $116m, or 6.7% of sales, an increase of $73m compared with $43m, or 2.0% of sales, for the same period a year ago.

For the first nine months of 2009, total sales of $4.65bn were lower by $3.2bn, or 41%, compared with the same period a year earlier. For the first nine months of 2009, Visteon booked a net loss of $148m, or $1.14 per share, compared with a net loss of $335m, or $2.59 per share during the first nine months of 2008. Adjusted EBITDA for the first nine months of 2009 was $220m, compared with $359m in the same period last year.