Auto supplier Visteon Corp. said Thursday that fourth-quarter net income dropped nearly 50 percent as production at the company's top customers fell 2 percent, though overall revenue rose.
The company said the ongoing microchip shortage could hit global auto production by about 10-15 percent in the first half of 2021 and likely lead to additional plant closures. Visteon said it now expects industry production volumes to increase about 8 percent to 80 million units in 2021, compared with earlier expectations of 14 percent global growth.
Visteon said it expects the supply situation to improve in the second half of 2021.
For the fourth quarter Visteon reported net income of $18 million compared with $35 million in the year-ago period. Revenue rose 5.8 percent during the quarter to $787 million.
Gross margins fell to 11.3 percent in the quarter from 14 percent in the year-earlier period.