Visteon posts loss, cuts FY revenue outlook
(Reuters) - Auto parts supplier Visteon Corp (VC.N) posted a first-quarter loss because of restructuring costs and lowered its full-year sales forecast to reflect discontinued operations.
Visteon, which previously said it was looking to divest non-core assets, agreed to sell its automotive lighting business to India-based Varroc Group in March.
For the full year, the former Ford Motor Co (F.N) subsidiary said it expects revenue of $6.6 billion to $7.0 billion, below its prior view of $7.1 billion to $7.5 billion.
Analysts on average had been expecting $7.3 billion, according to Thomson Reuters I/B/E/S.
Visteon said it adjusted its outlook to reflect its discontinued lighting business and the sale of its Grace Lake Corporate Center in Michigan. It expects full-year adjusted earnings before interest, taxes, depreciation and amortization of $620 million to $660 million.
Revenue in the first quarter fell 7 percent to $1.72 billion. The company, which makes climate, audio and driver control systems, said the deconsolidation of its Korean Interiors joint venture reduced sales by $114 million.
Hyundai (005380.KS) and its Kia (000270.KS) affiliate accounted for almost a third of Visteon's product sales in the quarter, followed by Ford (26 percent) and Renault (RENA.PA)-Nissan (7201.T) (10 percent).
Asia and Europe were Visteon's most important regions, accounting for 43 percent and 36 percent of sales, respectively. North America was 16 percent.
For the quarter, Visteon reported a net loss of $29 million, or 56 cents per share, compared with a profit of $39 million, or 75 cents per share, a year earlier.
The quarter included $63 million of restructuring and related costs.
The company's shares, up 30 percent since touching a year low in October, closed at $50.22 on Tuesday on the New York Stock Exchange.
(Reporting by Sagarika Jaisinghani in Bangalore, additional reporting by Ben Klayman in Detroit; Editing by Joyjeet Das and John Wallace)
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