Visteon Cuts Costs and Narrows Losses
Auto-parts maker Visteon posted a narrower quarterly loss on Wednesday, supported by cost cuts, and said a multiyear restructuring plan remains on track.
The net loss narrowed to $109 million, or 84 cents per share, in the third quarter, from $177 million, or $1.38 per share, a year earlier.
Excluding a $14 million asset impairment charge on the sale of a facility in India, Visteon posted a loss of 73 cents per share.
Analysts on average had expected a loss of $1.02 per share, according to Reuters Estimates.
Revenue fell 1.3 percent to $2.55 billion. Analysts had expected revenue of $2.58 billion.
Visteon sold nearly two dozen underperforming facilities back to former parent Ford Motor in 2005 and has been in a multiyear restructuring that includes plant closings, asset sales and shifting production to lower cost regions.
The company narrowed its 2007 outlook for earnings before net interest expense, income taxes and extraordinary items and excluding unreimbursed restructuring costs and noncash asset impairments.
The producer of vehicle interiors, climate controls and electronics said it now expects a full-year loss on that basis of $50 million to $80 million. In August it gave a forecast for a full-year loss of $35 million to $135 million.
The company expects product sales of $10.6 billion for the year, and free cash flow of negative $200 million to negative $260 million.
Shares of Visteon were 1 percent higher in Frankfurt trading.