VAN BUREN TOWNSHIP, Mich. – Visteon Corp. has announced its first quarter 2012 results, reporting a net loss of $29 million, or 56 cents per diluted share, which includes $63 million of restructuring and related costs, on sales of $1.72 billion, compared with $1.85 billion in the first quarter of 2011.
Visteon said Hyundai-Kia accounted for approximately 32 percent of the company’s first quarter product sales, with Ford Motor Co. accounting for 26 percent, Renault-Nissan 10 percent and PSA Peugeot-Citroen 5 percent. On a regional basis, Asia accounted for 43 percent of total product sales – up from 42 percent a year earlier – while Europe represented 36 percent, North America 16 percent and South America 5 percent.
"To deliver improving returns, we are investing in and winning new business in our climate and electronics businesses," said Donald Stebbins, chairman, CEO and president. "We are committed to increasing customer and shareholder value in the growing worldwide automotive industry. We will do so with a strong balance sheet, innovative Visteon technology and with one of the strongest global manufacturing and engineering footprints in the automotive supplier industry."
The deconsolidation of a Korean Interiors joint venture from the company’s financial statements lowered sales on a year-over-year basis by $114 million. Unfavorable currency of $33 million and customer pricing were partially offset by higher production volumes and new business.
During the first quarter of 2012, Visteon recognized $42 million of equity in the net income of non-consolidated affiliates, compared with $44 million in the first quarter of 2011. Visteon’s 50 percent-owned affiliate, Yanfeng Visteon Automotive Trim Systems Ltd. (YFV), and related affiliate interests contributed $40 million in equity income. On a U.S. GAAP basis, YFV’s first-quarter 2012 sales totaled $793 million, compared with $720 million a year earlier – a 10 percent increase.
As of March 31, Visteon had global cash balances of $721 million, including $25 million of restricted cash. Total debt was $596 million as of March 31.
Visteon generated $19 million in cash from operations in the first quarter of 2012, an improvement of $69 million over the same period a year earlier, when $50 million in cash was used. Free cash flow improved $71 million in the first quarter of 2012 compared with the same quarter in 2011.
Visteon adjusted its sales and earnings guidance for full year 2012 to reflect discontinued operations associated with the company’s lighting business and to give full effect to the sale of Grace Lake Corporate Center in Van Buren Township, Mich. Based on these adjustments, the company currently expects full-year 2012 product sales in the range of $6.6 billion to $7 billion and adjusted EBITDA in the range of $620 million to $660 million. Free cash flow is expected to be in the range of $5 million to $30 million.
