VAN BUREN TOWNSHIP, Mich., Oct. 24, 2024 (GLOBE NEWSWIRE) -- Visteon Corporation (NASDAQ: VC) today reported third quarter financial results. Highlights include:
- Sales of $980 million with Growth-over-Market of 6%1
- Net income of $39 million and adjusted net income of $63 million
- Adjusted EBITDA of $119 million
- Launched 30 new products in the quarter and 71 year-to-date
- New business wins of $4.9 billion year-to-date
- Net cash of $229 million at quarter end
Gross margin in the third quarter was $131 million. Net income attributable to Visteon was $39 million or $1.40 per diluted share and adjusted net income, a non-GAAP measure defined below, was $63 million or $2.26 per diluted share. Net income, as compared to the prior year, includes the favorable impact of strong operational performance and lower net engineering, partially offset by restructuring expense incurred in the third quarter of 2024. Adjusted EBITDA, a non-GAAP measure defined below, was $119 million in the third quarter and reflects the Company's strong focus on operational execution, commercial excellence, and cost discipline.
For the first nine months, cash from operations was $224 million, capital expenditures were $96 million and adjusted free cash flow, a non-GAAP measure defined below, was $135 million. The company ended the third quarter with cash of $553 million and debt of $324 million. Our strong balance sheet, with a net cash position of $229 million, provides the flexibility to deliver on our capital allocation priorities.
Visteon launched 30 new products in the third quarter, with launches across each of its product lines. Key third quarter launches include an infotainment display system on the Tata Punch, highlighting our continued momentum in India; SmartCore(TM) on an electric SUV for Lynk & Co for the European market and the Renault Grand Koleos hybrid for the Korean market; a digital cluster on the Nissan Qashqai, a popular SUV in Europe; and a wireless BMS for the all-electric Jeep Wagoneer.
Visteon secured $4.9 billion in new business through the first nine months of the year, including $2.5 billion of wins with OEMs in Asia excluding China. Our success in diversifying into adjacent end-markets also continued, with further momentum with two-wheeler and commercial vehicle OEMs. Third quarter wins included a large, curved display for multiple mass market vehicles in Europe for a global OEM, SmartCore™ and display wins for a SUV model for an Indian OEM and for an electric vehicle for a domestic China OEM. We also had a follow-on win for a digital cluster with a two-wheeler OEM in India.
"Visteon delivered solid sales and growth-over-market in the third quarter, demonstrating our ability to navigate a challenging customer production environment,” said President and CEO Sachin Lawande. "Demand from our customers remains robust for our diverse product portfolio targeting automotive megatrends of digitalization and electrification. Our continued success in securing new business wins and our momentum with two-wheeler and commercial vehicle OEMs provide a strong foundation for future growth."
Based on our year-to-date performance and outlook for the fourth quarter, Visteon is updating its full-year 2024 guidance and anticipates sales in the range of $3.85 - $3.90 billion, adjusted EBITDA in the range of $465 - $480 million, and adjusted free cash flow in the range of $165 - $185 million.
About Visteon
Visteon is advancing mobility through innovative technology solutions that enable a software-defined and electric future. With next-generation digital cockpit and electrification products, Visteon leverages the strength and agility of its global network with a local footprint to deliver a cleaner, safer and more connected vehicle experience. Headquartered in Van Buren Township, Michigan, Visteon operates in 17 countries worldwide, recorded approximately $3.95 billion in annual sales and booked $7.2 billion of new business in 2023. Learn more at investors.visteon.com/.
Conference Call and Presentation
Today, Thursday, October 24, at 9 a.m. ET, the company will host a conference call for the investment community to discuss the quarter's results and other related items. The conference call is available to the general public via a live audio webcast.
The dial-in numbers to participate in the call are:
U.S./Canada: 1-888-330-2508
Outside U.S./Canada: 1-240-789-2735
Conference ID: 8897485
(Call approximately 10 minutes before the start of the conference.)
The conference call and live audio webcast, related presentation materials and other supplemental information will be accessible in the Investors section of Visteon's website.
Use of Non-GAAP Financial Information
Because not all companies use identical calculations, adjusted EBITDA, adjusted net income, adjusted EPS, free cash flow and adjusted free cash flow used throughout this press release may not be comparable to other similarly titled measures of other companies.
In order to provide the forward-looking non-GAAP financial measures for full-year 2024, the company provides reconciliations to the most directly comparable GAAP financial measures on the subsequent slides. The provision of these comparable GAAP financial measures is not intended to indicate that the company is explicitly or implicitly providing projections on those GAAP financial measures, and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the company at the date of this press release and the adjustments that management can reasonably predict.
Forward-looking Information
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "will," "may," "designed to," "outlook," "believes," "should," "anticipates," "plans," "expects," "intends," "estimates," "forecasts" and similar expressions identify certain of these forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various factors, risks and uncertainties that could cause our actual results to differ materially from those expressed in these forward-looking statements, including, but not limited to:
- continued and future impacts of the geopolitical conflicts and related supply chain disruptions, including but not limited to the conflicts in the Middle East, Russia and East Asia and the possible imposition of sanctions;
- significant or prolonged shortage of critical components from our suppliers, including but not limited to semiconductors, and particularly those who are our sole or primary sources;
- failure of the Company's joint venture partners to comply with contractual obligations or to exert influence or pressure in China;
- conditions within the automotive industry, including (i) the automotive vehicle production volumes and schedules of our customers, (ii) the financial condition of our customers and the effects of any restructuring or reorganization plans that may be undertaken by our customers, including work stoppages at our customers, and (iii) possible disruptions in the supply of commodities to us or our customers due to financial distress, work stoppages, natural disasters or civil unrest;
- our ability to satisfy future capital and liquidity requirements; including our ability to access the credit and capital markets at the times and in the amounts needed and on terms acceptable to us; our ability to comply with financial and other covenants in our credit agreements; and the continuation of acceptable supplier payment terms;
- our ability to access funds generated by foreign subsidiaries and joint ventures on a timely and cost-effective basis;
- general economic conditions, including changes in interest rates and fuel prices; the timing and expenses related to internal restructurings, employee reductions, acquisitions or dispositions and the effect of pension and other post-employment benefit obligations;
- disruptions in information technology systems including, but not limited to, system failure, cyber-attack, malicious computer software (malware including ransomware), unauthorized physical or electronic access, or other natural or man-made incidents or disasters;
- increases in raw material and energy costs and our ability to offset or recover these costs; increases in our warranty, product liability and recall costs or the outcome of legal or regulatory proceedings to which we are or may become a party;
- changes in laws, regulations, policies or other activities of governments, agencies and similar organizations, domestic and foreign, that may tax or otherwise increase the cost of, or otherwise affect, the manufacture, licensing, distribution, sale, ownership or use of our products or assets; and
- those factors identified in our filings with the SEC (including our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as updated by our subsequent filings with the Securities and Exchange Commission).
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| VISTEON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In millions except per share amounts) (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net sales | $ | 980 | $ | 1,014 | $ | 2,927 | $ | 2,964 | |||||||
| Cost of sales | (849 | ) | (871 | ) | (2,530 | ) | (2,607 | ) | |||||||
| Gross margin | 131 | 143 | 397 | 357 | |||||||||||
| Selling, general and administrative expenses | (51 | ) | (52 | ) | (152 | ) | (156 | ) | |||||||
| Restructuring, net | (28 | ) | - | (31 | ) | (2 | ) | ||||||||
| Interest expense, net | - | (1 | ) | - | (7 | ) | |||||||||
| Equity in net income (loss) of non-consolidated affiliates | (3 | ) | (1 | ) | (7 | ) | (8 | ) | |||||||
| Other income (expense), net | 2 | 3 | 7 | (4 | ) | ||||||||||
| Income (loss) before income taxes | 51 | 92 | 214 | 180 | |||||||||||
| Provision for income taxes | (11 | ) | (21 | ) | (55 | ) | (48 | ) | |||||||
| Net income (loss) | 40 | 71 | 159 | 132 | |||||||||||
| Less: Net (income) loss attributable to non-controlling interests | (1 | ) | (5 | ) | (7 | ) | (12 | ) | |||||||
| Net income (loss) attributable to Visteon Corporation | $ | 39 | $ | 66 | $ | 152 | $ | 120 | |||||||
| Comprehensive income (loss) | $ | 69 | $ | 58 | $ | 153 | $ | 114 | |||||||
| Less: Comprehensive (income) loss attributable to non-controlling interests | (7 | ) | (4 | ) | (10 | ) | (6 | ) | |||||||
| Comprehensive income (loss) attributable to Visteon Corporation | $ | 62 | $ | 54 | $ | 143 | $ | 108 | |||||||
| Basic earnings (loss) per share attributable to Visteon Corporation | $ | 1.41 | $ | 2.35 | $ | 5.51 | $ | 4.26 | |||||||
| Diluted earnings (loss) per share attributable to Visteon Corporation | $ | 1.40 | $ | 2.32 | $ | 5.45 | $ | 4.20 | |||||||
| Average shares outstanding (in millions) | |||||||||||||||
| Basic | 27.6 | 28.1 | 27.6 | 28.2 | |||||||||||
| Diluted | 27.9 | 28.5 | 27.9 | 28.6 | |||||||||||
| VISTEON CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions) | |||||||
| (Unaudited) | |||||||
| September 30, | December 31, | ||||||
| 2024 | 2023 | ||||||
| ASSETS | |||||||
| Cash and equivalents | $ | 550 | $ | 515 | |||
| Restricted cash | 3 | 3 | |||||
| Accounts receivable, net | 719 | 666 | |||||
| Inventories, net | 321 | 298 | |||||
| Other current assets |
| ||||||