Visteon Corp. has reported first quarter financial results.
Highlights include:
- Sales of $967 million, up 22%1 from prior year
- 16th consecutive quarter of growth-over-market
- Net income of $34 million
- Adjusted EBITDA of $99 million or 10.2% of sales
- $1.5 billion in new business wins
- $135 million in net cash at quarter end
Visteon reported net sales of $967 million, representing a year-over-year increase of 22% excluding the negative currency impact of 4%. Total industry vehicle production increased 6%, while vehicle production at Visteon’s top customers increased 9%. Visteon’s sales outperformed customer vehicle production volumes for the 16th consecutive quarter driven by the continued high demand for Visteon’s digital cockpit products.
Gross margin in the first quarter was $110 million, and net income attributable to Visteon was $34 million. Adjusted EBITDA, a non-GAAP measure as defined below, was $99 million for the first quarter or 10.2% of sales, an increase of $28 million compared to the prior year. The increase in adjusted EBITDA reflects the favorable impact of higher sales volumes and timing of customer recoveries, partially offset by higher engineering and SG&A expenses supporting business growth, as well as an unfavorable foreign exchange impact.
The company won $1.5 billion in new business in the first quarter, demonstrating its ongoing success in electrification and continued leadership in digital cockpit technologies. First quarter wins included a follow-on win with a global OEM for a previously announced wireless battery management system program. This follow-on win adds incremental electric vehicle models to the program, including electric versions of the OEM’s flagship truck and full-size SUV. Additional wins in the quarter included an infotainment and display system for an Indian OEM as well as a follow-on SmartCore program win with a Chinese OEM for their luxury electric brand.
Visteon’s products launched on 34 vehicle models in the first quarter of the year which will directly contribute to the company’s near-term sales growth. Key new launches include a 12.3-inch digital cluster on General Motors’ Silverado and Sierra Heavy Duty trucks, a SmartCore program on Geely’s Zeekr X crossover CUV, and a digital cluster and audio system on the Ford Ranger for South America.
For the first three months, cash used by operations was $19 million and capital expenditures were $21 million. Adjusted free cash flow, a non-GAAP financial measure as defined below, for the first three months of 2023 was a use of cash of $37 million. The company ended the first quarter with cash of $487 million and debt of $352 million, representing a net cash position of $135 million.
“I am proud of Visteon’s performance to start the year,” said President and CEO Sachin Lawande. “Our continued strong performance is driven by our best-in-class product portfolio and focus on operational and commercial discipline.”
Visteon is maintaining its full-year 2023 guidance and anticipates sales in the range of $3.95 million-$4.15 billion; Adjusted EBITDA in the range of $405million-$445 million; and Adjusted Free Cash Flow in the range of $115 million-$165 million.
