Visteon Corp. has announced third-quarter 2018 results, reporting sales of $681 million, compared with $765 million in the third quarter of 2017. Third-quarter net income attributable to Visteon was $21 million or 71 cents per diluted share for 2018, compared with $43 million or $1.35 per diluted share in 2017.
Adjusted EBITDA was $71 million for the third quarter, compared with $83 million in the same period last year. Adjusted net income was $33 million for the third quarter or $1.12 per diluted share, compared with $45 million or $1.42 per diluted share in the third quarter of 2017.
Global vehicle manufacturers awarded Visteon new business of $5.4 billion year-to-date through Sept. 30, 2018.
“The third quarter was very challenging, as vehicle production volumes were impacted in virtually every region,” said Visteon President and CEO Sachin Lawande. “Our new business wins remain strong, driven by our new technologies and products that address emerging trends in the industry. Despite near-term headwinds, we remain confident about our long-term growth.”
Third Quarter in Review
Sales totaled $681 million and $765 million during the third quarters of 2018 and 2017, respectively. On a regional basis, in the third quarter of 2018, Asia accounted for 42 percent of sales, Europe 32 percent, and the Americas 26 percent.
Adjusted EBITDA was $71 million for the third quarter of 2018, compared with $83 million for the same quarter last year. Adjusted EBITDA margin was 10.4 percent for the third quarter of 2018, 40 basis points lower than the prior year.
For the third quarter of 2018, net income was $21 million or 71 cents per diluted share, compared with $43 million or $1.35 per diluted share for the same period in 2017. Adjusted net income, which excludes restructuring charges and discontinued operations, was $33 million or $1.12 per diluted share for the third quarter of 2018, compared with $45 million or $1.42 per diluted share for the same period in 2017.
Cash and Debt Balances
Visteon’s balance sheet remains strong with total cash of $442 million as of Sept. 30, 2018. Total debt as of Sept. 30, 2018, was $380 million.
For the third quarter of 2018, cash used by operations was $19 million, and capital expenditures were $27 million. Year-to-date cash from operations was $107 million, and capital expenditures were $96 million. Total Visteon adjusted free cash flow, a non-GAAP financial measure as defined below, for the third quarter and first nine months of the year was $42 million and $35 million, respectively.
Share Repurchases
During the first nine months of the year, the company repurchased $250 million of shares, and as of Sept. 30, 2018, had 29.1 million of diluted shares of common stock outstanding.
Visteon is authorized to purchase an additional $450 million of shares through Dec. 31, 2020, under the board of directors’ Jan. 15, 2018, resolution.
Full-Year 2018 Outlook
Visteon updated its full-year 2018 guidance, with sales in the range of $2.95 billion to $3.00 billion, adjusted EBITDA in the range of $315 million to $335 million, and adjusted free cash flow in the range of $80 million to $100 million.
