CHICAGO -- Auto parts maker Visteon Corp. on Tuesday posted a bigger-than-expected third-quarter loss of $200 million, pressured by North America vehicle production cuts and high raw materials prices.
The company said it expects to recognize a gain of up to $1.8 billion in the fourth quarter from former parent Ford Motor Co.'s bailout, but forecast an operating loss and negative cash flow because of commodity and customer pricing pressures.
The third-quarter net loss narrowed to $200 million, or $1.58 per share, from $1.44 billion, or $11.48 per share, in the year earlier quarter when Visteon took $1.3 billion in charges, mainly for deferred tax asset valuation allowances and asset impairments.
Excluding 9 cents per share of charges for non-U.S. actions, Visteon's latest loss was $1.49 per share, while analysts on average expected a loss of $1.33 per share, according to Reuters Estimates.
Results are preliminary pending the completion of an accounting review.
Sales dipped by $15 million to $4.12 billion.
Visteon on Oct. 1 returned 23 facilities to Ford under a massive bailout to avoid bankruptcy. The move slashed annual revenue by about 40 percent to $11.4 billion, but reduced the company's reliance on Ford business.
After the transition, Visteon has about 50,000 employees and 170 facilities in 24 countries. It plans to focus on products where it has generated the most new business: interiors, climate control and electronics, including lighting.
Visteon has provided 5,000 salaried employees to support the divested facilities, which were arranged in a holding company. It expects significant restructuring over the next several years.
Visteon Corp. ranks No. 6 on the Automotive News list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $17.7 billion in 2004.
Most large U.S. auto parts makers have suffered under North American market share losses by Ford and General Motors and rising raw materials costs in 2005. Industry leader Delphi Corp. declared bankruptcy in October.