Visteon posts weaker earnings, takes charge

Visteon Corp., the No. 2 US automotive parts supplier, on 20 July reported second-quarter loss of US$ 40 million after a charge of US$ 100 million to cover a restructuring that included job cuts.
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Visteon Corp., the No. 2 US automotive parts supplier, on 20 July reported second-quarter loss of US$ 40 million after a charge of US$ 100 million to cover a restructuring that included job cuts. Dearborn, Michigan-based Visteon, hit by the slowdown in auto sales this year, said its operating earnings fell to US$ 60 million, or 46 cents per share, from US$ 162 million, or US$ 1.25 per share, a year earlier. Including the one-time charge, Visteon lost US$ 40 million, or 31 cents per share, in the second quarter this year. Wall Street analysts had expected earnings, before the charge, of 20 to 53 cents per share, with a consensus forecast of 35 cents, according to Thomson Financial/First Call. Visteon shares closed at US$ 19.10 on the New York Stock Exchange on 19 July. Since it was spun off from Ford Motor Co. in June last year, the stock has outperformed the Standard & Poor“s Auto Parts index, rising about 37% while the index has climbed about 25%.