VAN BUREN TOWNSHIP, Mich. (AP) -- Auto parts maker Visteon Corp. reported fourth-quarter net income of $86 million in its first quarter after emerging from bankruptcy protection.
Including restructuring gains of $1.06 billion, the net profit came to $1.13 billion, combining the earnings of the company after it emerged from bankruptcy with results from the full company prior to bankruptcy.
The former Ford Motor Co. parts unit said Wednesday that by itself, the successor company that left bankruptcy earned $86 million, or $1.66 per share, for the quarter ended in December, compared with $276 million, or $2.12 per share, in the same period a year earlier. But Visteon cautioned against year-ago comparisons because of financial statement adjustments from fresh start accounting after it emerged from bankruptcy on Oct. 1.
Fourth-quarter revenue was $1.89 billion, down 7 percent from $2.03 billion the company took in during the same period in 2009. Visteon said divestitures and plant closures cut revenue by $128 million and it was hurt by unfavorable currency exchanges, partially offset by higher car and truck production.
Visteon, Ford Motor Co.'s parts unit before being spun off in 2000, said 31 percent of its fourth-quarter product sales came from Korean automakers Hyundai and Kia, while 23 percent came from Ford. By region, about 43 percent of its business came from the Asia Pacific unit, compared with only 15 percent in North America. Visteon had been heavily reliant on Ford and North America for its business. As recently as 2007, Ford accounted for 37 percent of Visteon's sales.
The company, based in Van Buren Township, Mich., near Detroit, said in a statement that it finished the year with a global cash balance of $979 million and total debt of $561 million.
For the full year, the company reported net income of just over $1 billion, compared with $128 million in 2009.
Visteon gave no earnings-per-share figures for 2010 but said it made 98 cents per share in 2009. The 2010 earnings included $933 million in reorganization gains, the company said.
"Our full-year results significantly improved from last year, reflecting our ongoing operational actions, benefits from our restructuring initiatives and an upswing in global vehicle production volumes," Chairman and CEO Donald Stebbins said in a statement. "We capitalized on sales growth in China and other emerging markets."
The company said it expects product sales for 2011 to range from $7.3 billion to $7.5 billion. Last year, product sales were $7.32 billion.
Shares of Visteon slid $7.89, or nearly 11 percent, to $65.80 in midday trading.