VAN BUREN TOWNSHIP, Mich. — Visteon Corp. today announced second quarter 2011 results, reporting net income of $26 million, or 50 cents per diluted share, on product sales of $2.18 billion, compared with a net loss of $201 million on product sales of $1.89 billion for the second quarter of 2010.
Second quarter 2011 net income included a loss on debt extinguishment of $24 million associated with the successful debt refinancing completed in April and $19 million of net restructuring charges principally related to the announced closure of an electronics plant in Spain.
“Visteon’s sales and profitability continue to improve, reflecting both increased production volume from our customers and the actions we have taken to competitively position the company for success,” said Donald Stebbins, chairman, CEO and president. “Our customers continue to recognize the value of our products, technology and global footprint in meeting their needs around the world.”
Product sales increased by $289 million, or 15 percent, compared with the second quarter of 2010. The impact of divestitures and closures from prior actions lowered sales on a year-over-year basis by $37 million. Excluding the impact of divestitures and closures, sales increased $326 million, or about 18 percent, compared with a year earlier, reflecting higher production volumes across all major customers and favorable currency.
For the second quarter of 2011, Visteon reported net income of $26 million, or 50 cents per diluted share, which included $43 million of costs associated with refinancing and operational restructuring activities. This compares with a net loss of $201 million in the same period in 2010, which included a $75 million net charge related to changes in OPEB plans and reorganization-related expenses totaling $161 million, including a $122 million charge for certain post-petition interest.
For the first six months of 2011, total product sales of $4.15 billion were higher by $416 million, or 11 percent, compared with the same period a year earlier. For the first six months, Visteon reported net income of $65 million, or $1.25 per diluted share, compared with net income of $32 million, or 25 cents per diluted share, during the first six months of 2010.
Visteon’s higher sales for the first six months reflected increased production volumes and favorable currency, partially offset by the impact of plant divestitures and closures. For the first six months of 2011, Visteon won future new business expected to generate annual sales of approximately $550 million, with more than 80 percent of these wins launching in 2012 and 2013.
Visteon now expects full-year 2011 sales to be in the range of $8 billion to $8.2 billion.
