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Visteon reports drop in Q1 net income but gross margin rises

time:2016-04-29 source:未知 click: second
Visteon Corp., the former Ford parts unit that supplies various automotive electronics, on Thursday reported net income of $19 million on revenue of $802 million.
That was  down from income of $50 million on revenue of $816 million during the same quarter in 2015.
Adjusting for discontinued operations and restructuring costs, earnings totaled $1.22 per share, topping Wall Street projections of $0.95 share.
Visteon attributes the decline in revenue to the divestiture of its interiors plant in Berlin, Germany, that it sold in December to Automotive Plastic Components Holding GmbH.
However, gross margins are improving for Visteon, which reported first-quarter margins of $121 million, compared with $112 million a year earlier. The $9 million increase in margin is due to higher sales volume and new business impacts, partially offset by the impact of unfavorable currency, the company said in a press release.
"Our strong financial results reflect the increasing desire of vehicle manufacturers to include our cockpit electronics technology in their vehicles, as well as solid cost performance across our global operations," CEO Sachin Lawande said in a press release.
Last month, Visteon filed to take its former CEO Tim Leuliette to court over his retirement compensation package. The company requested a jury trial against Leuliette on March 31 in U.S. District Court for the Eastern District of Michigan after the retired CEO initiated an arbitration proceeding in February, according to court documents.
The case is currently sealed until reviewed by U.S. District Judge Terrence Berg, so details of the dispute remain unclear, though it is in reference to his employment agreement. Leuliette may be seeking arbitration to gain access to a more lucrative separation package, which had a discrepancy of nearly $43 million upon his retirement.