Visteon Announces Third-Quarter 2009 Results

VAN BUREN TOWNSHIP, Mich., Oct. 28, 2009 /PRNewswire-FirstCall/ --

Third Quarter Summary

    --  Product sales of $1.67 billion

        --  Up 13 percent  from second quarter 2009
        --  Down 17 percent from third quarter 2008
    --  Operating performance continues to improve

        --  Third straight quarterly improvement
        --  Gross margin of $116 million, up 170 percent from third quarter 2008
    --  Net loss of $38 million vs. net loss of $188 million in 2008
    --  Cash remains strong

        --  Quarter-end cash balance of $814 million
        --  Operating cash flow of $84 million

Visteon Corporation (OTC: VSTN) today announced its third-quarter 2009 results, reporting a net loss of $38 million, or 29 cents per share, on total sales of $1.73 billion. For the third quarter of 2008, Visteon reported a net loss of $188 million, or $1.45 per share, on total sales of $2.12 billion. Adjusted EBITDA, as defined below, for third quarter 2009 was $125 million, compared with $5 million in third quarter 2008.

(Logo: http://www.newscom.com/cgi-bin/prnh/20001201/DEF008LOGO )

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.

"Despite the difficult operating environment, our third-quarter results reflect the continued efforts of our employees to build a global framework for business success which is focused on serving our customers with innovative products and technologies," said Donald J. Stebbins, chairman and chief executive officer. "While we believe the global auto industry is recovering from historically low levels of production, there remain challenges as the industry stabilizes."

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

Third Quarter 2009 Results

For third quarter 2009, total sales were $1.73 billion, including product sales of $1.67 billion and services revenue of $61 million. Product sales decreased by about $340 million, or 17 percent, year-over-year as the impact of foreign currency and divestitures and facility closures reduced sales by about $130 million and $90 million, respectively. Lower production, net of new business, further reduced sales by about $90 million. 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 $116 million, or 6.7 percent of sales, an increase of $73 million compared with $43 million, or 2.0 percent of sales, for the same period a year ago. Favorable cost performance, reflecting ongoing operational efficiencies as well as recently implemented restructuring actions, and foreign currency more than offset the impact of lower production levels.

Selling, general and administrative expense for third quarter 2009 totaled $95 million, a decrease of $43 million, or 31 percent, compared with the same period a year ago, reflecting the benefit of significant headcount and other cost-reduction actions.

For third quarter 2009, the company reported a net loss of $38 million, or 29 cents per share. This compares with a net loss of $188 million, or $1.45 per share, in the same quarter a year ago. Restructuring and reorganization costs of $27 million and $23 million, respectively, were incurred during the quarter while reimbursement from customers totaled $4 million. Third-quarter 2008 results included $42 million of restructuring costs and $19 million of asset impairments and loss on divestiture, along with $39 million of escrow reimbursement.

Equity in net income of non-consolidated affiliates increased $21 million to $26 million in third quarter 2009 as compared to the same period in 2008, largely reflecting continued customer production increases in Asia Pacific. Income tax expense for third quarter 2009 was $18 million compared with $31 million in the same period a year ago. Adjusted EBITDA for third quarter 2009 was $125 million, compared with $5 million for third quarter 2008.

First Nine Months 2009

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

Cash Flow and Liquidity

As of September 30, 2009, Visteon had cash balances totaling $814 million, $72 million higher than June 30, 2009 levels.

Cash generated by operating activities totaled $84 million for third quarter 2009, a $244 million improvement over the cash use of $160 million during the same period a year ago. The improvement was attributable to lower net losses, as adjusted for non-cash items, and lower trade working capital outflows. Trade working capital in the third quarter 2009 reflected, among other items, the impact of pre-petition payables that have not been settled. Capital expenditures were $29 million for third quarter 2009, compared with $76 million in third quarter 2008, reflecting the company's continued management of program investment. Free cash flow, as defined below, was $55 million for third quarter 2009, or $291 million better than 2008, which was a use of $236 million.

New Business Wins

Visteon continues to win new business despite the difficult economic environment. During the first nine months of 2009, Visteon won more than $400 million in incremental new business. On a regional basis, Asia and North America each accounted for 41 percent of the total, with Europe accounting for the remaining 18 percent.

Visteon is a leading global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. With corporate offices in Van Buren Township, Mich. (U.S.); Shanghai, China; and Chelmsford, UK; the company has facilities in 26 countries and employs approximately 30,000 people.

Forward-looking Information

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various factors, risks and uncertainties that could cause our actual results to differ materially from those expressed in these forward-looking statements, including, but not limited to,

    --  the potential adverse impact of the Chapter 11 proceedings on our
        business, financial condition or results of operations, including our
        ability to maintain contracts and other customer and vendor
        relationships that are critical to our business and the actions and
        decisions of our creditors and other third parties with interests in our
        Chapter 11 proceedings;
    --  our ability to maintain adequate liquidity to fund our operations during
        the Chapter 11 proceedings and to fund a plan of reorganization and
            thereafter,  including  obtaining  sufficient  debtor-in-possession  and
                "exit"  financing;  maintaining  normal  terms  with  our  vendors  and  service
                providers  during  the  Chapter  11  proceedings  and  complying  with  the
                covenants  and  other  terms  of  our  financing  agreements;
        --    our  ability  to  obtain  court  approval  with  respect  to  motions  in  the
                Chapter  11  proceedings  prosecuted  from  time  to  time  and  to  develop,
                prosecute,  confirm  and  consummate  one  or  more  plans  of  reorganization
                with  respect  to  the  Chapter  11  proceedings  and  to  consummate  all  of  the
                transactions  contemplated  by  one  or  more  such  plans  of  reorganization  or
                upon  which  consummation  of  such  plans  may  be  conditioned;
        --    conditions  within  the  automotive  industry,  including  (i)  the  automotive
                vehicle  production  volumes  and  schedules  of  our  customers,  and  in
                particular  Ford's  and  Hyundai/Kia's  vehicle  production  volumes,  (ii)  the
                financial  condition  of  our  customers  or  suppliers  and  the  effects  of  any
                restructuring  or  reorganization  plans  that  may  be  undertaken  by  our
                customers  or  suppliers  or  work  stoppages  at  our  customers  or  suppliers,
                and  (iii)  possible  disruptions  in  the  supply  of  commodities  to  us  or  our
                customers  due  to  financial  distress  or  work  stoppages;
        --    general  economic  conditions,  including  changes  in  interest  rates  and
                fuel  prices;  the  timing  and  expenses  related  to  internal  restructurings,
                employee  reductions,  acquisitions  or  dispositions  and  the  effect  of
                pension  and  other  post-employment  benefit  obligations;
        --    increases  in  raw  material  and  energy  costs  and  our  ability  to  offset  or
                recover  these  costs,  increases  in  our  warranty,  product  liability  and
                recall  costs  or  the  outcome  of  legal  or  regulatory  proceedings  to  which
                we  are  or  may  become  a  party;  and
        --    those  factors  identified  in  our  filings  with  the  SEC  (including  our
                Annual  Report  on  Form  10-K  for  the  fiscal  year  ended  Dec.  31,  2008).
 

1 | 2 | 3  Next Page »

Rating:


Review Article Be the first to review this article

Featured Video
Editorial
Jeff RoweJeff's MCAD Blogging
by Jeff Rowe
Re-Use Your CAD: The ModelCHECK Handbook
Jobs
Senior Structural Engineer for Design Everest at San Francisco, CA
GIS Analyst II for Air Worldwide at Boston, MA
Business Partner Manager for Cityworks - Azteca Systems, LLC at Sandy, UT
Upcoming Events
Design & Manufacturing, Feb 7 - 9, 2017 Anaheim Convention Center, Anaheim, CA at Anaheim Convention Center Anaheim CA - Feb 7 - 9, 2017
Innorobo 2017 at Docks de Paris Paris France - May 16 - 18, 2017
Display Week 2017 at Los Angeles Convention Center 1201 S Figueroa St Los Angeles CA - May 21 - 26, 2017
SolidCAM: Program your CNCs directly inside your existing CAD system.



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy Advertise