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Visteon profit falls short, but raises 2011 outlook

Visteon profit falls short, but raises 2011 outlook
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First Published: Thu, May 05 2011. 06 02 PM IST
Updated: Thu, May 05 2011. 06 02 PM IST
Detroit: Auto-parts maker Visteon Corp, which emerged from bankruptcy in 2010, reported a lower-than-expected quarterly profit on Thursday, but raised its full-year outlook due to rising global vehicle production.
The Van Buren Township, Michigan-based company reported first-quarter earnings of $39 million, or 75 cents per share, compared with $233 million or $1.79 per share, a year earlier.
Visteon’s net profit in the first quarter of 2010 had been boosted by a one-time net gain of $237 million.
Analysts had expected earnings per share for the quarter of 79 cents.
Revenue at the company, which makes air conditioning and electronics systems, rose in the quarter to $1.97 billion from $1.85 billion.
Visteon raised its full-year revenue outlook to between $7.75 billion and $7.85 billion and said it expected earnings before interest, taxes, depreciation and amortization (EBITDA) of $640 million to $680 million.
Previously, the company had said it expected revenue for the year of $7.3 billion to $7.5 billion and EBITDA in a range of $620 million to $660 million.
During the first quarter, Ford Motor Co and Hyundai Motor Co were Visteon’s largest customers, each accounting for 28% of sales.
The auto supplier said that while the 11 March earthquake and tsunami in Japan did not affect its first-quarter results, due to uncertainty over supply chain disruptions stemming from that natural disaster its new outlook “remains subject to change.”
Visteon was spun off from Ford in 2000 and filed for Chapter 11 bankruptcy in May 2009, a casualty of the global financial crisis, which sent auto sales to a 27-year low and pushed General Motors and Chrysler into bankruptcy.
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First Published: Thu, May 05 2011. 06 02 PM IST