Visteon Corp. (VC), a maker of climate, interior and electronics products for vehicles, on Thursday reported a turnaround to profit in the fourth quarter on higher sales. Looking ahead, the company forecast revenues for fiscal 2013 above analysts' estimates.
Climate sales for the fourth quarter increased by $161 million from the year-ago period, reflecting higher production volumes and net new business that were primarily attributable to volume increases in Asia and North America.
Electronics sales increased $11 million during the quarter from last year. The increase reflects vehicle production volume increases in North America, partly offset by the impact of weakened economic conditions in Europe that reduced production volumes. Unfavorable currency negatively impacted sales.
Meanwhile, Interiors sales decreased by $89 million from the year-ago period. Sales decreased $74 million due to the deconsolidation of Duckyang Industry Co. Ltd. Sales were further decreased by lower vehicle production volumes, primarily in Europe, in addition to unfavorable currency.
Michigan-based Visteon's net income for the fourth quarter was $39 million or $0.74 per share, compared to net loss of $26 million or $0.51 per share in the same period last year. On average, four analysts polled by Thomson Reuters expected the company to earn $0.88 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter rose 5 percent to $1.82 billion from $1.73 billion in the same period last year. Analysts had a consensus revenue estimate of $1.72 billion.
Visteon noted that Hyundai-Kia accounted for about 34 percent of its fourth-quarter sales, with Ford Motor Co. (F) representing 27 percent, Renault-Nissan 7 percent and PSA Peugeot-Citroen 4 percent.
For fiscal 2012, Visteon's net income rose to $100 million or $1.88 per share from $80 million or $1.54 per share in the previous year. However, sales for the year declined 9 percent to $6.86 billion from $7.53 billion last year, reflecting the October 2011 deconsolidation of Duckyang and unfavorable currency.
Analysts expected the company to earn $3.08 per share for the year on revenues of $6.78 billion.
Visteon reported new business wins of $1.20 billion for 2012, including $750 million of incremental new wins and $450 million of rewin business. The company has an expected backlog of about $800 million of consolidated net new business for the period 2013-2015.
Looking ahead to fiscal year 2013, Visteon forecast revenues in a range of $7.3 billion to $7.5 billion. Analysts currently expect revenues of $7.20 billion for the year.
The company said that the consolidation of its climate business with Halla Climate Control was largely complete.
In Thursday's regular session, VC is trading at $56.76, down $0.34 or 0.60 percent on a volume of 71,750 shares.
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