Visteon Corporation recently reported third quarter 2022 financial results.
Visteon reported net sales of $1,026 million representing a year-over-year increase of 63%, or 69%, excluding the impact of currency, driven by new product launches and positive pricing due to incremental costs recoveries primarily related to semiconductor shortages. The company’s sales performance represents the 14th consecutive quarter of market out-performance.
Gross margin in the third quarter was $104 million, and net income attributable to Visteon was $44 million or $1.54 per diluted share. Adjusted EBITDA, a non-GAAP measure as defined below, was $95 million for the third quarter or 9.3% of sales, an increase of $53 million compared to the prior year. The increase in adjusted EBITDA primarily reflects the favorable impact of higher sales volumes and the ongoing benefits from the restructuring actions initiated in 2020.
For the first nine months, Visteon reported cash provided by operations was $2 million and cash used for capital expenditures was $54 million. Adjusted free cash flow, a non-GAAP financial measure as defined below, was a use of cash of $40 million primarily driven by an outflow in working capital related to the timing of customer pricing recoveries and higher inventory levels due to uneven supply of semiconductors and higher sales levels. The company ended the third quarter with cash of $365 million and debt of $349 million equating to a net cash position of $16 million.
New Business Wins and Product Launch Highlights
Visteon also reported it continued its robust new program launch cadence in the quarter with five new programs bringing the total to 32 new program launches through the first nine months of the year. In addition, the Company is increasingly seeing the benefit of its platform approach with additional model launches on prior programs.
The company said it won $5.0 billion in new business through the first nine months of the year. Third quarter wins included incremental awards for a previously won wireless battery management system program with a North American OEM, demonstrating our continued momentum in electrification. Visteon also won a multi-display module with a luxury German OEM, representing our first multi-display program with a passenger display and our first multi-display program win with this OEM. Additionally, Visteon won digital cluster and center display programs for an electric vehicle-line with a North American OEM.
Outlook and Updated Guidance
“Our 14th consecutive growth-over-market quarter speaks to the sustained demand for our digital products,” said President and CEO Sachin Lawande. “Looking ahead, we’re well positioned to deliver further growth and will continue to expand and execute on our technology roadmap that reflects industry trends towards digital, connected and electric mobility technology solutions.”
Visteon reported it is increasing its full-year 2022 guidance for sales and Adjusted EBITDA as it now anticipates sales in the range of approximately $3.6 – $3.7 billion and Adjusted EBITDA in the range of $325-$345 million. In addition, Visteon is now anticipating Adjusted Free Cash Flow in the range of $30-$70 million.