By By Dustin Walsh, Crain's Detroit Business
Global auto supplier Visteon posted a loss of $201m for Q2 2010, up from a loss of $112 million during the same quarter in 2009, even though revenues and earnings both increased.
The company blamed the loss on post-pertition interest expenses and a net $75 million charge related to post-retirement employee benefit plans.
Total sales were approximately $1950 million, including product sales of $1890 million and services revenue of $56 million. Gross margin totalled $104 million, compared to $80 million a year earlier, while adjusted earnings went up by $93 million to $166 million.
In terms of region, Europe accounted for 36 percent of Visteon's total sales. The company's biggest customer during the quarter was Hyundai-Kia.
The company also announced that its shareholders have accepted its fourth amended joint plan of reorganisation. This year, the company resisted a $1250 million (€1000 million) buy-out offer from JCI, opting instead to pursue its current plan to exit Chapter 11 bankruptcy protection.
The company also said bondholders have indicated they are willing to purchase $950 million of stock in the reorganised company.
Visteon, spun off by Ford Motor in 2000, makes automotive electronics, lighting systems, and climate control products. It struggled last year under a heavy debt load during a time when automotive production volumes were at the lowest levels in decades, dragging down revenue.