Costs Hit Visteon's Bottom Line
Visteon
(VC) - Get Visteon Corporation Report
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 Ford Motor Company 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.
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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
(GM) - Get General Motors Company 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.
