DETROIT -- Auto-parts supplier Visteon Corp. narrowed losses and bolstered cash reserves during its first full quarter of bankruptcy protection.
The third-quarter net loss of $38 million compares with deficits of $188 million in the same period in 2008 and $112 million in the second quarter of this year.
Visteon said it had $814 million in cash, $72 million more than it had halfway through 2009.
Revenue totaled $1.73 billion, down from $2.12 billion in the year-earlier quarter. About $130 million of the decrease came from less favorable currency exchange rates, $90 million from divestitures and facility closures and $90 million from lower production levels.
Visteon, which never posted an annual profit since being spun off by Ford Motor Co. in 2000, filed for Chapter 11 bankruptcy on May 28. The company makes electronic, climate control and lighting products.
Sales to former parent Ford and Hyundai-Kia made up 27 percent each of third-quarter revenue. Renault-Nissan made up 10 percent and PSA Peugeot Citroen accounted for 6 percent.
Sales to North America made up 22 percent of last quarter's sales, down from 34 percent for all of 2008. After Visteon restructures, about 15 percent of Visteon's global revenue going forward will come from North America, the company has said.
Asian sales represented 36 percent of revenue, European 35 percent and South American 7 percent. Sales declined in every region except Asia.
Through September, 41 percent of the $400 million in new business Visteon has won this year came from Asia and 41 percent from North America. European business made up the additional 18 percent.
Exiting some Nissan business
Last week, Visteon said it will receive more than $33 million in exchange for exiting its interiors business with Nissan North America Inc.
Visteon plans to sell its four U.S. plants that supply the Nissan Motor Co. unit with cockpit modules, front-end modules and other interiors products to a holding company created by Nissan, according to documents filed Friday in U.S. Bankruptcy Court in Wilmington, Del. The sale also includes the plants' tooling and inventory.
Visteon is seeking to exit its interiors and module business in North America because the business is not profitable and pegged as a nonessential part of the company to be pared off during the bankruptcy process.
The supplier, of Van Buren Township, Mich., expects 2009 sales to total $191 million with a $2 million plant level loss at the four plants, according to court documents describing the sale.
Visteon will retain contracts to supply climate control and lighting products to Nissan, Visteon spokesman Jim Fisher said.
The sale and exit of the U.S. interiors business marks Visteon's third such move since its bankruptcy. Visteon struck deals to wind-down or transfer U.S.-based supply work for General Motors Co. and Chrysler Group to other suppliers in recent months.
Ryan Beene is a reporter for Crain's Detroit Business