DETROIT (Reuters) -- Visteon Corp. reported a slump in sales and cut its earnings forecast for the year, citing lower vehicle production in Europe, South America and China.
The company said Thursday it expects EBITDA (earnings before interest, taxes, depreciation and amortization) of $580 million to $620 million for the year, down from its earlier view of $620 million to $660 million.
It also lowered the top end of its sales forecast and expects $6.6 billion and $6.8 billion for the year. It had earlier forecast sales of $6.6 billion to $7.0 billion.
Visteon, which plans to buy back $100 million in shares over the next two years, said it sold its stake in its interiors joint venture in the UK, R-TEK Ltd, for about $30 million.
The former Ford Motor Co. subsidiary has been exploring the sale of non-core assets to streamline its corporate structure and boost profit margins. It has been facing breakup pressure from some board members and shareholders, who believe the company is worth more in parts than as a whole.
The company has since turned its focus to two core product lines -- climate control and electronics.
Visteon last month made an unsuccessful attempt to take full control of its South Korean unit Halla Climate Control Corp. after facing opposition from other Halla shareholders.
Its second-quarter net income rose to $75 million, or $1.40 per share, from $26 million, or 50 cents per share, a year ago.
Excluding items, Visteon earned 80 cents per share, below analysts' estimates of 84 cents per share, according to Thomson Reuters I/B/E/S.
Revenue fell 17 percent to $1.69 billion, below analysts' consensus view of $1.75 billion.
Visteon shares have plunged 43 percent this year after dropping 33 percent in 2011.
Visteon ranks No. 22 on the Automotive News Europe list of the top 100 global suppliers with worldwide sales to automakers of about $8 billion in 2011. Europe accounted for 36 percent of that total.