Visteon Q3 Profit More Than Doubles, Revises Full-year View - Update

(RTTNews) - Automotive supplier Visteon Corp. (VC) Thursday said its third-quarter profit more than doubled from last year, as sales increased by improvement in core climate and electronics businesses. The result was also benefited by lower income tax provisions. The company revised its outlook for full year 2013.

Tim Leuliette, president and CEO of the firm said, "Fueled by strong technology, we achieved year-over-year improvement in our core climate and electronics businesses. We continue to effectively manage fixed costs, including focusing engineering expenses on technology areas that will drive growth in those businesses."

Climate segment sales were $1.13 billion, up $107 million from last year, driven by higher production volumes and new business. Electronics sales improved $36 million to $340 million, as higher production volumes increased sales year-over-year in all regions. Meanwhile, Interiors sales decreased $14 million to $293 million.

In the third quarter, net income attributable to the Michigan-based Visteon increased to $43 million or $0.85 per share from $15 million or $0.28 per share in the previous year.

On an adjusted basis, earnings were $1.17 per share, while the company posted $0.33 per share last year.

On average, four analysts polled by Thomson Reuters expected the company to report earnings of $1.16 per share for the quarter. Analysts' estimates typically exclude special items.

Provision for income taxes declined to $20 million from $33 million in the third quarter of 2012.

Quarterly sales improved to $1.73 billion from $1.62 billion in the preceding year, while analysts estimated revenues of $1.78 billion for the quarter.

On a regional basis, Asia accounted for 45 percent of sales, Europe represented 30 percent, North America 20 percent and South America 5 percent.

For full-year 2013, the company now expects adjusted earnings per share to be in range of $5.00 to $6.26, on sales of $7.4 billion.

Visteon now project adjusted EBITDA in the range of $680 million to $700 million, and adjusted free cash flow in the range of $145 million to $185 million.

The company said in August that it expected sales to be $7.3 billion to $7.5 billion and adjusted EBITDA in the range of $660 million to $690 million.

Street currently is looking for full-year 2013 earnings of $6.17 per share, on annual revenues of $7.43 billion.

VC closed Wednesday's regular trading at $76.88 on the NYSE.