Visteon 3Q net income falls 63 pct
VAN BUREN TOWNSHIP, Mich. (AP) — Auto supplier Visteon Corp. said Thursday that its third-quarter net income dropped 63 percent and announced plans for a $100 million restructuring..
Visteon earned $15 million, or 28 cents per share, down from $41 million, or 79 cents per share, in the same quarter last year. Excluding discontinued operations, the company made 37 cents per share in the recent quarter.
Analysts, on average, expected 48 cents per share, according to FactSet.
Revenue fell 15 percent to $1.62 billion, slightly below analysts' predictions of $1.63 billion.
Sales at the company's climate division rose on higher production volume, but that was offset by sales drops in the electronics and interiors businesses.
The effects of unfavorable currency exchange rates reduced sales at all three of the divisions. Visteon, like other companies that do significant business outside the U.S., can be hurt by a rising dollar because income earned in foreign currencies shrinks when it's converted to the dollar.
Visteon also said Thursday that it plans to restructure itself, closing underperforming facilities and slashing other costs. So far this year, the company said it has reduced its targeted costs by 7 percent.
As part of the program, Visteon expects to incur costs of about $100 million starting in the fourth quarter of 2012, with year-over-year improvements in 2013 and 2014.
Visteon was spun off from Ford Motor Co. in 2000. It filed for bankruptcy protection in 2009 and emerged in 2010 after shedding billions in debt and pension costs.
The company now expects 2012 product sales to total about $6.8 billion. Visteon previously predicted sales of $6.6 billion to $6.8 billion. Analysts expect $6.67 billion.