VAN BUREN TOWNSHIP, Mich. -- Visteon has announced its first quarter 2009 results, reporting net income of $2 million, or 2 cents per share, on sales of $1.35 billion. The first-quarter 2009 profit includes a one-time, non-cash gain of $95 million related to the deconsolidation of the net assets associated with Visteon UK Ltd. For first quarter 2008, Visteon reported a net loss of $105 million, or 81 cents per share, on sales of $2.86 billion. Adjusted EBITDA for first quarter 2009 was $22 million, compared with $166 million in first quarter 2008.
"Our first-quarter results were significantly affected by the global reduction in vehicle production," said Donald Stebbins, chairman and chief executive officer. "Visteon is taking the necessary steps to protect capital, maintain viable operations and position our global business for future success."
Visteon continues to execute cost-reduction actions in response to the current market conditions beyond those associated with the recently completed three-year improvement plan. These additional cost-reduction actions include previously announced global salaried and hourly workforce reductions, shortened work weeks, temporary reductions in pay and elimination of 401(k) matching contributions and merit increases and other measures. Additionally, Visteon successfully completed the salaried employee reduction plan initiated in third quarter 2008. Savings from this program are expected to be about $90 million annually.
Visteon's first-quarter product sales remain diversified among customers and across regions. Approximately 31 percent of first quarter product sales were to Ford Motor Co., while Hyundai-Kia accounted for 25 percent. Renault-Nissan and PSA/Peugeot-Citroen accounted for about 7 percent and 6 percent of sales, respectively. On a regional basis, Europe accounted for about 38 percent of total product sales, with Asia representing 32 percent, North America representing 24 percent and the balance in South America.
As announced on March 31, administrators were appointed for an affiliate of Visteon Corp., Visteon UK Ltd., in accordance with the United Kingdom Insolvency Act 1986. This decision to place this subsidiary into administration was reached after all options were exhausted to address the continued substantial loss-making operations of the three Visteon UK Ltd. facilities. The effect of the administration of Visteon UK Ltd. was to place the management, affairs, business and property under the direct control of representatives from KPMG as administrators. Consequently, the net assets of Visteon UK Ltd. have been deconsolidated from those of Visteon Corporation. Visteon UK Ltd. had liabilities in excess of assets, and a negative net worth. The administration proceedings do not include Visteon Corp. or any of its other subsidiaries.
"The actions undertaken with respect to our UK operations were a difficult, but necessary step to address a history of losses in these operations, and to support our goal of positioning Visteon as a competitive and viable company in this challenging environment," added Stebbins.
