UPDATE 3Visteon posts wider loss restructuring continues
(Adds analyst’s remarks, byline)
By David Bailey
DETROIT, Feb 14 (Reuters) - Auto parts maker Visteon Corp
(VC.N: Quote, Profile, Research) posted a wider quarterly net loss on Thursday due to
pressure on its business in North America and costs for a
restructuring the company said remains on track.
Visteon, which has been in a three-year restructuring that
it launched shortly after a bailout by former parent Ford Motor
Co (F.N: Quote, Profile, Research) in 2005, said it expects to fix, sell or close eight
facilities in 2008.
“It is a relatively small first step and, given Visteon’s
track record and continued need for further restructuring,
there is more to be done, but we see the fourth quarter
performance as an important move in the right direction,”
Calyon Securities analyst Mark Warnsman said in a note.
The net loss widened to $43 million, or 33 cents per share,
in the fourth quarter, from $39 million, or 30 cents per share,
a year earlier.
The loss included $30 million of non-cash asset impairments
and $32 million of restructuring expenses that could not be
covered by an escrow account established under the bailout by
Ford.
Revenue from continuing operations rose 1.9 percent to
$2.86 billion due to favorable foreign exchange rates.
Product sales to Ford fell 10 percent to $960 million in
the quarter due to lower North American production volume,
divestitures and other actions, representing about 35 percent
of the company’s product sales overall. Continued…
