VAN BUREN TOWNSHIP, Mich. — Visteon Corp. has announced improved year-over-year fourth quarter and full year 2009 financial performance, reflecting ongoing operational improvements, cost reductions and restructuring benefits, and some slight recovery of global vehicle production volumes. 
"Our restructuring, ongoing cost-reduction initiatives and ability to keep overhead costs aligned with reduced sales helped drive significant year-over-year improvements in cash flow and earnings, despite significantly lower vehicle production volumes and challenging industry conditions," said Visteon Chairman and CEO Donald Stebbins.
For the fourth quarter of 2009, Visteon reported net income of $276 million, or $2.12 per share, on sales of $2.03 billion. For the fourth quarter of 2008, Visteon reported a net loss of $346 million, or $2.67 per share, on sales of $1.65 billion. Adjusted EBITDA, as defined below, for the fourth quarter of 2009 was $230 million, compared with negative $1 million in the fourth quarter of 2008.
For the full year 2009, Visteon reported net income of $128 million (98 cents per share) on sales of $6.68 billion, compared with a net loss of $681 million, or $5.26 per share, on sales of $9.54 billion for the full year 2008. Adjusted EBITDA for the full year 2009 was $454 million, compared with $358 million in 2008.
Visteon said its fourth quarter product sales were more diversified than ever before. Approximately 27 percent of fourth quarter product sales were to Hyundai-Kia, with Ford Motor Co. also accounting for 27 percent. Renault-Nissan and PSA Peugeot-Citroen collectively accounted for about 16 percent of sales. On a regional basis, Europe and Asia Pacific accounted for 37 percent and 34 percent of total product sales, respectively. North America accounted for 22 percent and South America 7 percent. In 2010, Visteon expects Asia Pacific to be its largest sales region.
For the fourth quarter of 2009, total sales were $2.03 billion, including product sales of $1.97 billion. Product sales increased by approximately $420 million year-over-year, including $180 million of foreign currency. Divestitures and plant closures reduced sales by about $66 million. Fourth quarter sales increased in every major region in which Visteon operates, compared with the same period a year earlier, reflecting increased production volumes by customers as global economic and industry conditions showed some improvement.
For the fourth quarter of 2009, the company reported net income of $276 million, or $2.12 per share. This compares with a net loss of $346 million, or $2.67 per share, for the same period a year earlier. Fourth quarter results for 2008 included a non-cash asset impairment charge of $200 million for long-lived assets utilized in the interiors business. Adjusted EBITDA for the fourth quarter of 2009 was $230 million, an increase of $231 million from the same quarter a year earlier.
For the full year 2009, Visteon’s sales were $6.68 billion, including product sales of $6.42 billion. Product sales were down $2.66 billion, or nearly 30 percent, from 2008, primarily related to lower production volumes, the impact of plant divestitures and closures, and unfavorable currency. Services revenue of $265 million decreased $202 million from 2008, as fewer leased Visteon employees supported Automotive Components Holdings LLC.
"Through many aggressive and very difficult actions, Visteon’s overhead cost structure was essentially flat as a percentage of sales in 2009, despite a nearly 30 percent decline in product sales," Stebbins said. "We are focused on providing a competitive cost structure for our customers and will continue to aggressively look for opportunities in this area."
Visteon reported net income of $128 million, or 98 cents per share for 2009, representing its first annual profit. This is an improvement of $809 million when compared with a loss of $681 million, or $5.26 per share, for 2008. Adjusted EBITDA increased $96 million from 2008 to $454 million.
During 2009, Visteon won approximately $562 million of incremental new business and $593 million in gross re-win business. The Asia Pacific region accounted for 58 percent of the new business wins; North America represented about 25 percent and Europe 17 percent. Visteon’s product quality, as measured in defective parts per million, reached record levels for the company in 2009 and contributed to Visteon’s ability to win new business. Additionally, Visteon’s employee safety performance, based on lost-time case rate, also was its best ever in 2009.
"During 2009, we began to see certain automakers sourcing product programs previously deferred due to the economic conditions affecting their markets," Stebbins said. "As vehicle volumes increase and the macro-economic environment improves, we are well-positioned to win and retain business from customers around the world who recognize the benefits of Visteon’s product quality, innovative technologies, and strong global engineering and manufacturing footprint."
