Visteon first-quarter profits rise on higher sales, cost-cutting from retiree benefits

Visteon 1Q up on sales, cost-cutting

VAN BUREN TOWNSHIP, Mich. — Auto parts supplier Visteon Corp. said Friday that its first-quarter earnings rose sharply on higher sales and a gain from the company’s termination of its retirees health and life insurance benefits.

Visteon, which filed for bankruptcy protection in May, said it earned $233 million, or $1.79 per share, much higher than its $2 million, or 2 cent-per share profit a year ago.

Sales rose to $1.9 billion, up 41 percent from $1.35 billion in the 2009 first quarter.

Sales were higher in all the regions where Visteon operates, which the company said reflected higher production from its automaker customers. Visteon is a former subsidiary of Ford Motor Co. and remains a major supplier of parts to the company.

Visteon was helped by a $251 million gain connected to the end of company-paid medical, prescription drug, and life insurance benefits to its retirees. A Delaware bankruptcy judge approved the plan that will affect roughly 8,000 Visteon retirees.