Visteon Launches Restructuring After Profit Falls 63%

Visteon Corp. posted net income of $15 million for July-September, down from $41 million in the same period last year.

Revenue dropped 15% to $1.6 billion because of the strong dollar and deconsolidation of its Duckyang unit in China, according to the company.

Visteon, which has cut cost by $35 million, or 7% this year, now plans a new restructuring initiative. The program includes closing a factory in the Philippines and other unidentified facilities, shrinking European operations and cutting overhead expenses.

Savings from the restructuring will result in year-over-year earnings improvements in 2013 and 2014, the company says. It expects to incur $100 million in restructuring charges, starting in the current quarter.

Visteon's third-quarter earnings before interest, taxes, depreciation, amortization and one-time items fell 22% to $131 million.

Adjusted EBITDA by business segment dropped 9% to $75 million for climate control, 32% to $23 million for electronics and 46% to $43 million for interiors. Revenue edged up 1% to $1.1 billion for climate control but declined 15% to $299 million for electronics and 47% to $357 million for interiors.

The company now expects full-year sales of about $6.8 billion, the top end of its previous range. Visteon narrowed its earlier forecast range for adjusted EBITDA to between $590 million and $610 million.