VAN BUREN TOWNSHIP, Mich. -- Visteon has announced first quarter 2011 results, reporting net income of $39 million, or 75 cents per diluted share, on product sales of $1.97 billion, compared with net income of $233 million on product sales of $1.85 billion for the first quarter of 2010.

Net income of $233 million for first quarter 2010 included a $237 million net gain related to the termination of company-paid medical, prescription drug and life insurance coverage benefits under certain U.S. other post-retirement employee benefit (OPEB) plans. Adjusted EBITDA, as defined below, for first quarter 2011 was $159 million, compared with $161 million in first quarter 2010.  

“Our first-quarter results reflect higher sales resulting from increased vehicle production volumes across all products, regions and major customers,” said Donald Stebbins, chairman, CEO and president. “Visteon’s global footprint, strong product and technology portfolio and customer focus continue to drive our new business wins, as our customers awarded Visteon more than $300 million in new business in the first quarter.”

Hyundai-Kia and Ford Motor Co. each accounted for approximately 28 percent of Visteon’s first-quarter product sales of $1.97 billion, with Renault-Nissan accounting for 8 percent and PSA Peugeot-Citroen 7 percent. On a regional basis, Asia accounted for 40 percent of total product sales − up from 35 percent a year earlier − while Europe represented 39 percent, North America 16 percent and South America 5 percent.

As of March 31, 2011, Visteon had global cash balances of $901 million, including $70 million of restricted cash, compared with $979 million and $74 million, respectively, at the end of 2010. Total debt was $566 million as of March 31, 2011.

Visteon increased its sales and earnings guidance for full year 2011. The company expects full-year 2011 product sales in the range of $7.75 billion to $7.85 billion and adjusted EBITDA in the range of $640 million to $680 million. Free cash flow is expected to be a use of approximately $175 million.

Visteon operates two manufacturing facilities and three customer service centers in Japan. The company noted that while the effects of the earthquakes and tsunami in Japan did not materially impact Visteon’s first quarter results, customer production schedules remain fluid and subject to change. Additionally, the ability of vehicle manufacturers to compensate for lost production depends on the availability of components to supply increased output and the ability of labor structures to handle overtime, with the most significantly impacted commodities including semiconductors, electronics components and displays. Visteon anticipates production disruptions to continue through the second and into the third quarter of 2011 and is working closely with its customers and suppliers to minimize the impact of such disruptions. As events in Japan continue to evolve, the company’s full-year 2011 outlook remains subject to change.