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— Auto parts supplier Visteon Corp., which is working its way through bankruptcy, said Monday that its second-quarter loss widened due to charges for interest expenses and retirement benefits.
The company also said preliminary voting results show all of its creditor and shareholders classes have approved its latest reorganization plan, a development Visteon said was a key part of its efforts to emerge from Chapter 11 proceedings.
For the second quarter, Visteon reported a net loss of $201 million, or $1.55 per share, larger than the $112 million, or 87-cent per share loss it had in the year-ago quarter.
Visteon said the 2010 second quarter included a $122 million charge for interest expenses and a $75 million charge connected to retiree benefit plans.
Sales rose 24 percent to $1.95 billion from $1.57 billion, helped by the improving global market for auto sales. Visteon sold most of its products to Hyundai-Kia and Ford Motor Co. during the quarter. Asia was its largest regional market.
Despite the better sales results, Visteon CEO Donald J. Stebbins said the company does not expect vehicle production in the second half of 2010 to match the pace set during the first six months of the year.
Visteon also said that it plans to go ahead with a planned Aug. 31 court date to confirm its reorganization plan.
The company reached a settlement with a group of objecting shareholders by offering the right to take part in the direct purchase commitment for 144,456 shares on the date of Visteon's exit from bankruptcy. Visteon will also provide $4.25 million to cover costs and expenses of the shareholders.
"This marks an important milestone in Visteon's successful emergence from our Chapter 11 process," Stebbins said.
