Visteon shares fell after reporting a quarterly loss

Article by Christian A., on March 2, 2012

Amid reports of Visteon Corp. recently posting a quarterly loss, the Auto parts supplier said that it is studying the sale of "non-core" assets in order to reorganize its corporate structure and boost margins. Visteon has shown interest in owning 100% of South Korea's Halla Climate Control Corp. Presently, Visteon owns 70%.

CEO Don Stebbins said that for the Halla stake, it would be the perfect timing to achieve 100%. Visteon predicts that it would face pressure from several board members and shareholders.

Visteon is actually looking for whoever wants to buy Grace Lake Corporate Center, a support center in Michigan that Stebbins claims to have a book value of $75 million to $80 million.

He said that it will continue to divest what appears to be non-core assets to really get down to just operating the business. For last quarter, Visteon posted a net loss of $26 million, or 51 cents per share.

The previous year, it posted a net income of $1.13 billion, which includes $1.06 billion in reorganization gains. Its quarterly revenue fell to $1.86 billion from $1.9 billion.

The company's shares fell $1, or almost 2%, to $52.56 in morning trade on the New York Stock Exchange. The former affiliate of Ford Motor Co has four businesses: climate control, interiors, electronics and lighting.

Among its most valuable assets are its stakes in Halla and Yanfeng Visteon Automotive Trim Systems, its joint venture in China with Huayu Automotive Systems. Last November, Visteon inked a non-binding pact for the sale of the majority of its interiors business to Yanfeng Visteon.

Topics: visteon

If you liked the article, share on:

Comments

Recommended

Mazda seems too far ahead in Safety technology for having four of its vehicles chosen as the safest on the road. Very recently, the Insurance Institute for Highway Safety has...
by - June 22, 2017
The automotive world is intensely competitive given the growing number of players, but the British car manufacturer is adamantly holding on to its spot. The 2018 Jaguar XF Sportbrake, priced...
by - June 22, 2017
Audi’s all-electric supercar, the R8 e-tron, had been discontinued last October after being in the market for under two years. The electric vehicle was then exclusive to the European market...
by - June 22, 2017
Dodge has made it clear to everyone, including its potential buyers, that the Challenger SRT Demon is a street-legal drag car - that it is unlike any of your ordinary...
by - June 22, 2017
After a number of failed attempts, Tesla finally gets an Arizona dealership license by winning a court battle that allows them to sell directly to consumers. The automotive dealer license...
by - June 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries