Visteon Announces Third-Quarter 2020 Results
Visteon Corporation (NASDAQ: VC) reported Q3 net sales of $747 million, reflecting a 3% year-over-year increase when excluding currency impact. The company achieved a net income of $6 million, or $0.21 per diluted share, and an adjusted net income of $38 million, or $1.36 per diluted share, after restructuring charges. With $1.5 billion in new business wins, Visteon launched a record 23 new products in the quarter. The firm repaid $400 million on its revolving credit facility, ending the quarter with a net cash position of $87 million.
- Net sales increased by 3% year-over-year, excluding currency effects.
- Adjusted EBITDA of $87 million, representing 11.6% of sales.
- Launched a record 23 new products in Q3, contributing to future revenue.
- New business wins totaled $1.5 billion in Q3, $3.2 billion YTD.
- Maintained a net cash position of $87 million after repaying $400 million.
- Net income of only $6 million, indicating limited profitability.
- Restructuring charges affecting adjusted net income metrics.
- Net sales of
$747 million ;3% increase Y/Y excluding currency - Net income of
$6 million or$0.21 per diluted share - Adjusted net income of
$38 million or$1.36 per diluted share, excluding restructuring charges - Adjusted EBITDA of
$87 million ,11.6% of sales $1.5 billion in new business wins and record 23 new product launches in Q3- Repaid
$400 million on revolving credit facility;$87 million net cash position
VAN BUREN TOWNSHIP, Mich., Oct. 29, 2020 (GLOBE NEWSWIRE) -- Visteon Corporation (NASDAQ: VC) today announced third-quarter net sales of
Gross margin in the third quarter was
During the third quarter, the company was awarded
Cash provided by the company's operations for the first nine months was
The company’s focus on cost controls is evident in the significant reductions in both engineering and adjusted SG&A, which are down
“The proactive measures we took earlier in the year to control costs also helped Visteon achieve record profitability for a third quarter,” said President and CEO Sachin Lawande. “We launched a record 23 new products in Q3, including products on flagship vehicles such as the new Ford F-150 and the Mercedes Benz S-Class. The combined projected lifetime revenue of these 23 launches is more than
The company advanced its growth strategy in the third quarter by launching a 12.4-inch digital cluster, telematics control unit and scalable audio solution for the all-new 2021 Ford F-150, and a digital instrument cluster for Daimler’s S-Class sedan. The rest of the year remains strong with multiple programs scheduled for launch during the fourth quarter.
New business wins were robust in the quarter. Key wins included a 12-inch display for a Japanese OEM, the success of Visteon’s Android-based VW Play infotainment system, which helped the company secure a similar Android infotainment award with a U.S.-based OEM, and an extension of its previously awarded battery management system.
About Visteon
Visteon is a global technology company that designs, engineers and manufactures innovative cockpit electronics and connected car solutions for the world’s major vehicle manufacturers. Visteon is driving the smart, learning, digital cockpit of the future, to improve safety and the user experience. Visteon is a global leader in cockpit electronic products including digital instrument clusters, information displays, infotainment, head-up displays, telematics, SmartCore™ cockpit domain controllers, and the DriveCore™ autonomous driving platform. Visteon also delivers artificial intelligence-based technologies, connected car, cybersecurity, interior sensing, and embedded multimedia and smartphone connectivity software solutions. Headquartered in Van Buren Township, Michigan, Visteon has approximately 10,000 employees at more than 40 facilities in 18 countries. Visteon had sales of approximately
Conference Call and Presentation
Today, Thursday, Oct. 29, 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: 866-411-5196
Outside U.S./Canada: 970-297-2404
Conference ID: 9459369
(Call approximately 15 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. A news release on Visteon’s third-quarter results will be available in the News section of the website.
A replay of the conference call will be available through the company’s website or by dialing
855-859-2056 (toll-free from the U.S. and Canada) or 404-537-3406 (international). The conference ID for the phone replay is 9459369. The phone replay will be available for one week following the conference call.
Use of Non-GAAP Financial Information
Because not all companies use identical calculations, adjusted gross margin, adjusted SG&A, 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.
The company has withdrawn its financial guidance and, due to the continued uncertainty of market conditions, will not be providing revised guidance until there is better clarity regarding the COVID-19 impact.
In order to provide the forward-looking non-GAAP financial measures for full-year 2020, the company is providing 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 coronavirus (COVID-19) pandemic on our financial condition and business operations including global supply chain disruptions, market downturns, reduced consumer demand and new government actions or restrictions;
- 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 execute on our transformational plans and cost-reduction initiatives in the amounts and on the timing contemplated;
- 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 satisfy pension and other post-employment benefit obligations;
- 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, and the timing and expenses related to internal restructurings, employee reductions, acquisitions or dispositions and the effect of pension and other post-employment benefit obligations;
- 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; 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, 2019, as updated by our subsequent filings with the Securities and Exchange Commission).
Caution should be taken not to place undue reliance on our forward-looking statements, which represent our view only as of the date of this press release, and which we assume no obligation to update. The financial results presented herein are preliminary and unaudited; final financial results will be included in the company's Quarterly Report on Form 10-Q for the fiscal quarter ended Sept. 30, 2020. New business wins, re-wins and backlog do not represent firm orders or firm commitments from customers, but are based on various assumptions, including the timing and duration of product launches, vehicle production levels, customer cancellations, installation rates, customer price reductions and currency exchange rates.
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Contacts:
Media:
Dave Barthmuss
805-660-1914
dave.barthmuss@visteon.com
Investors:
Kris Doyle
201-247-3050
kdoyle@visteon.com
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, | ||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
| Net sales | $ | 747 | $ | 731 | $ | 1,761 | $ | 2,201 | |||||||||||
| Cost of sales | (648 | ) | (647 | ) | (1,605 | ) | (1,981 | ) | |||||||||||
| Gross margin | 99 | 84 | 156 | 220 | |||||||||||||||
| Selling, general and administrative expenses | (45 | ) | (52 | ) | (140 | ) | (167 | ) | |||||||||||
| Restructuring expense, net | (32 | ) | (1 | ) | (69 | ) | (2 | ) | |||||||||||
| Interest expense, net | (5 | ) | (3 | ) | (10 | ) | (7 | ) | |||||||||||
| Equity in net income of non-consolidated affiliates | 2 | 1 | 4 | 7 | |||||||||||||||
| Other income, net | 3 | 2 | 10 |
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FAQ
What were Visteon's net sales in Q3 2020?
Visteon reported net sales of $747 million in Q3 2020.
How much new business did Visteon win in Q3 2020?
Visteon secured $1.5 billion in new business wins during Q3 2020.
What is Visteon's adjusted net income for Q3 2020?
The adjusted net income for Visteon in Q3 2020 was $38 million, or $1.36 per diluted share.
What was Visteon's cash position at the end of Q3 2020?
Visteon concluded Q3 2020 with a net cash position of $87 million.
How many new products did Visteon launch in Q3 2020?
Visteon launched a record 23 new products in Q3 2020.
VISTEON CORPORATION
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VAN BUREN TOWNSHIP
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