Visteon Triples Net Profit, But Operating Profit Lags

Visteon Corp. boosted net income to $75 million in the April-June period from $26 million in the same period of last year, thanks in part to $26 million in one-time gains and a 13% year-over-year reduction in overhead costs.

Second-quarter revenue fell 18% to $1.7 billion in the second quarter. Visteon blames unfavorable exchange rates, lower vehicle output in Europe and South America and the deconsolidation of a Chinese interiors venture. The same factors contributed to a 26% drop to $203 million earnings before interest, taxes, depreciation, amortization and one-time items in the three-month period, the company says.

Second-quarter sales increased 1% to $1.1 billion at the company's climate control unit, but EBITDA declined 9%. Revenue fell 15% to $351 million at its electronics business and plunged 25% to $357 million at its interiors unit. Adjusted EBITDA for those two units plummeted 32% and 46%, respectively.

Visteon lowered its full-year outlook because of slowing vehicle production in Europe, South America and China. The company cut its outlook for adjusted EBITDA by $40 million to a range of $580 million-$620 million. Visteon now expects 2012 revenue of as much as $6.8 billion, down from the previous estimate of $7 billion.

The company also announced it will buy back $100 million of its common shares over the next two years.

Separately, Visteon on Wednesday completed the previously announced sale of its automotive lighting unit to India's Varroc Group for $72 million, subject to price adjustments.