Visteon first-quarter operating income improves to $246 million

By Caroline Salls

Pittsburgh, April 30 - Visteon Corp. reported $246 million of operating income for the quarter ended March 31 on $1.904 billion in sales, according to a company news release.

The figures showed improvement over the $67 million operating income posted for the quarter ended March 31, 2009 on $1.352 billion in sales.

According to the release, the sales numbers included $1.85 billion of product sales and $58 million in service revenue. Visteon said product sales increased by $551 million year-over-year as higher production and new business wins increased sales.

The net income for the first quarter of 2010 was $248 million, up from $9 million of net income for the same period of 2009.

The company said its first-quarter results included a $237 million net gain related to another post-retirement employee benefit termination.

Visteon had $964 million in cash and cash equivalents at March 31, up from $962 million at Dec. 31.

"Increased global vehicle production, combined with our ongoing operational improvements and cost-reduction efforts, drove our year-over-year financial improvement," chairman, chief executive officer and president Donald J. Stebbins said in the release.

"We benefited from aggressive actions taken over the past year to keep our cost structure in line with significantly reduced global volumes.

"Although in the near term we remain concerned about European production volumes, we're confident that our worldwide engineering and manufacturing footprint positions Visteon to support new global vehicle programs and grow with our customers around the world."

Visteon, a Van Buren Township, Mich., global automotive supplier, filed for bankruptcy on May 28, 2009 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-11786.

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