UPDATE 3-Visteon posts wider loss, restructuring continues

(Adds analyst's remarks, byline)

By David Bailey

DETROIT, Feb 14 (Reuters) - Auto parts maker Visteon Corp VC.N 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) 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.

Product sales to other customers rose 10 percent to about $1.76 billion.

Visteon has been diversifying by both customer and region and expects significant restructuring in 2008 before delivering positive free cash flow in 2009 and profitability in 2010.

Visteon is bracing for expected production declines for key customer programs in North America and Europe in 2008 as well as its continuing divestitures and restructuring costs.

Most auto industry analysts expect U.S. light vehicle sales to decline in 2008, after a soft ending to 2007.

The company expects to fix, sell or close 30 facilities worldwide under the restructuring overall in narrowing its focus to climate controls, interiors and electronics. It has addressed 18 facilities so far.

Visteon expects to close plants in Bellignat, France, and Bedford, Indiana in 2008 and sell a chassis plant in Swansea, Wales. In January, Visteon announced plans to close a fuel tank assembly plant in Concordia, Missouri, in the third quarter.

The company left intact a 2008 forecast for sales, free cash flow and earnings before net interest expense, income taxes and extraordinary items and excluding unreimbursed restructuring costs and noncash asset impairments.