Visteon Profits Whacked By Loss From Discontinued Operations

VAN BUREN TWP. — Visteon Corp. reported a loss for the quarter and 12 months ended Dec. 31 thanks to losses from businesses that have been sold off.

Revenue was up 18 percent for the yaer to $7.51 billion from $6.37 billion a year earlier. Fourth quarter revenue was $2.04 billion, up from $1.69 billion in the fourth quarter of 2013.

The loss for the year was $295 million or $6.93 a share, compared to net income of $690 million or $13.50 a share a year earlier. For the quarter, the loss was $138 million or $3.12 a share, compared to net income of $513 million or $10.32 a share in the fourth quarter of 2013.

The culprit in both cases was losses from discontinued operations — $343 million for the year, vs. $10 million a year ago, for the full year, and $143 million for the quarter, vs. $12 million in the fourth quarter of 2013.

“We delivered a strong finish to an excellent year highlighted by several key achievements, including announcing the sale of our Halla Visteon Climate Control business, acquiring the electronics business of Johnson Controls, and completing the majority of our divestiture of the non-core interiors business,” said Timothy D. Leuliette, president and CEO. “With our singular focus on the vehicle cockpit electronics ecosystem; outstanding technology; and a balanced footprint across Asia, Europe and the Americas; Visteon is winning significant new business and is well-positioned to continue delivering value for our customers and shareholders.”

Hyundai-Kia accounted for approximately 34 percent of Visteon’s fourth-quarter sales, with Ford Motor Company representing 23 percent, and Renault-Nissan accounting for 6 percent. On a regional basis, Asia accounted for 49 percent of total product sales for the fourth quarter of 2014, while Europe represented 28 percent. North America and South America represented 21 percent and 2 percent, respectively.

Climate sales were $1.28 billion for the fourth quarter of 2014, $16 million higher than the same quarter last year. Higher vehicle production volumes, primarily in Asia and Europe, and net new business increased climate sales by $64 million.

Electronics sales were $744 million for the fourth quarter, $348 million higher than the fourth quarter of 2013. The increase is primarily attributable to the acquisition of the global automotive electronics business of Johnson Controls Inc., effective July 1, 2014, and the acquisition of a controlling interest in Yanfeng Visteon Automotive Electronics Co., Ltd. (YFVE) effective Nov. 7, 2013.

Adjusted earnings before interest, taxes, deducation and amortization for the quarter was $200 million, up from $138 million a year ago.

To listen to a conference call discussing these results, call (855) 859-2056 in the United States or Canada and (404) 537-3406 elsewhere. The conference ID for the phone replay is 21376213.

More at www.visteon.com.

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