* Raises full-year EBITDA forecast to $680 mln-$700 mln
* 3rd-quarter net income nearly triples to $43 mln
* Revenue rises 6.8 pct
Nov 7 Auto parts maker Visteon Corp
raised its full-year earnings forecast after third-quarter
profit nearly tripled due to cost cutting and higher sales of
climate control systems.
Visteon and peers BorgWarner Inc and Lear Corp
are benefiting from strong vehicles sales in the United
States. Auto makers are also expected to report some of their
highest sales since 2006 in the coming year.
Visteon, formerly a unit of Ford Motor Co, raised its
full-year forecast for adjusted EBITDA to $680 million-$700
million from $660 million-$690 million.
"Our revised guidance primarily reflects an improved outlook
for our climate electronics business," Chief Financial Officer
Jeffrey Stafeil said on a post-earnings conference call.
The company's climate and electronics businesses accounted
for 80 percent of its total sales in 2012.
The climate business comprises heating, ventilation, air
conditioning and powertrain cooling systems, while the
electronics business include infotainment and driver information
However, Visteon's shares fell 2 percent to $75.25 in early
trading as its earnings barely beat analysts' estimates. The
company handily beat estimates in the three previous quarters.
"Given the track record of significantly beating in recent
quarters on execution related margin upside, we think these
results are likely softer than most investors' expectations," JP
Morgan analyst Ryan Brinkman wrote in a note to clients.
Visteon's shares had gained 54 percent in the past 12 months
to Wednesday's close, outperforming the S&P 500 index.
Visteon said in December it would close plants around the
world to cut costs.
The company's gross margins rose 11 percent to $143 million
in the quarter ended Sept. 30. Selling, general and
administrative expenses fell 2 percent.
Hyundai-Kia, Visteon's largest customer, accounted for about
34 percent of the company's overall third-quarter revenue, which
rose 6.8 percent to $1.73 billion. Ford made up about 28
Net income attributable to the company nearly tripled to $43
million, or 85 cents per share.
The company reported adjusted earnings of $1.17 per share.
Analysts on average had expected earnings of $1.16 per share,
according to Thomson Reuters I/B/E/S.