Costs Hit Visteon's Bottom Line

Revenue is $5 billion for the second quarter.

Author:: TSC Staff
Publish date:: Aug 8, 2005 3:40 PM EDT

Visteon

posted second-quarter sales of $5 billion, but lost more than $1 billion, largely because of asset impairment charges the company recorded.

The auto-parts supplier had a loss of $1.2 billion, or $9.49 a share, in the quarter, including a charge of $1.1 billion, or $9.01 a share.

Sales to companies other than

Ford

(F) - Get Report

, its biggest customer, rose 29% to $1.8 billion and represented 36% of total sales. Shares of Visteon were up $1.43, or 17%, to $9.94 Monday.

Visteon ended the second quarter with $823 million of cash and $1.9 billion in debt. During the quarter, Visteon signed a new $300 million secured short-term credit facility and revised the terms of its existing $775 million, five-year facility and the $250 million delayed-draw term loan. In May, Visteon and Ford reached a memorandum of understanding to transfer 24 North American facilities to a Ford-managed entity.

Both companies are still targeting closing the transaction by the end of the third quarter.

The same day Visteon reported its results, parts maker

Delphi

( DPH) said if talks with its unions and former parent

(GM) - Get Report

don't lead to an agreement to address its liabilities and the cost of its U.S. operations, the company will consider options that could include filing for bankruptcy.