GO
Loading...

UPDATE 1-Visteon raises forecast as auto sales improve

Thursday, 7 Nov 2013 | 8:03 AM ET

* Raises FY forecast to $680 mln-$700 mln from $660 mln-$690 mln

* Net income nearly triples to $43 mln

* Revenue rises 6.8 pct

Nov 7 (Reuters) - Auto parts maker Visteon Corp raised its full-year earnings forecast after third-quarter profit nearly tripled due to cost cutting and higher sales of climate control systems.

Visteon and peers BorgWarner Inc and Lear Corp are benefiting from strong vehicles sales in the United States. Auto makers are set to report some of their highest sales in 2014.

Visteon, formerly a Ford Motor Co unit, raised its full-year forecast for adjusted EBITDA to $680 million-$700 million from $660 million-$690 million.

The company, which also makes in-vehicle entertainment and driver information systems, said in December it would close plants around the world to cut costs.

Gross margins rose 11 percent to $143 million in the third quarter ended Sept. 30. Selling, general and administrative expenses fell 2 percent.

Hyundai-Kia, Visteon's largest customer, accounted for about 34 percent of the company's overall third-quarter revenue, which rose 6.8 percent to $1.73 billion. Ford made up about 28 percent.

Sales of heating, ventilation, air conditioning and powertrain cooling systems rose by $107 million to $1.13 billion.

Net income attributable to the company rose to $43 million, or 85 cents per share, in the quarter ended Sept. 30, from $15 million, or 28 cents per share, a year earlier.

Shares of the company closed at $76.88 on the New York Stock Exchange on Wednesday.