Feb 25 Visteon Corp, the auto parts
maker, posted a stronger-than-expected quarterly profit on
Tuesday and reaffirmed its forecasts for 2014, sending its
shares up in morning trading.
Net income surged to $513 million, or $10.32 a share, in the
fourth quarter, compared with $39 million, or 74 cents a share,
in the year earlier period. The most recent period included $465
million in gains related to the sale of the company's stake in a
Chinese joint venture.
Excluding the gain from the divestiture and one-time costs,
the company earned $1.93 a share. Analysts polled by Thomson
Reuters I/B/E/S expected $1.45 a share.
Sales rose 7.4 percent from the previous year to $1.96
billion, driven by stronger demand in the company's climate
business in Asia and North America. Analysts expected $1.93
In the quarter, South Korean automaker Hyundai Motor Co
and its Kia affiliate accounted for
about 35 percent of sales, while Ford Motor Co represented
Asia accounted for half of all sales, up four percentage
points from the prior year, while Europe was down 1 point to 29
percent. North and South America represented 17 percent and 4
Visteon said it expects 2014 sales at a midpoint of $7.8
billion and adjusted earnings at a midpoint of $680 million,
repeating its forecast from last month. Analysts expect 2014
sales of $7.99 billion and adjusted earnings of $697 million.
In the fourth quarter, Visteon sold its 50 percent stake in
China's Yanfeng Visteon Automotive Trim Systems Co (YFV) to
Huayu Automotive Systems Co for $928 million before taxes.
Visteon also received about $180 million in dividend
distributions from YFV and related entities based on previously
undistributed earnings for 2012 and 2013.
Visteon said it expects to receive more than $1 billion in
total after-tax proceeds as a result of the series of
The company's shares were up 14 cents, or less than 1
percent, at $85.75 in trading on the New York Stock Exchange.