Visteon Announces Second-Quarter 2019 Results
• Sales of $733 million
• Net income of $7 million
• Adjusted EBITDA of $46 million
• Awarded $3.2 billion in new business YTD
- Driven by digital clusters, displays and SmartCore™
- One-third for electric vehicles
VAN BUREN TOWNSHIP, Mich., July 25, 2019 — Visteon Corporation (NASDAQ: VC) today announced second-quarter 2019 results, reporting net income attributable to Visteon of $7 million or $0.25 per diluted share, compared with $35 million or $1.17 per diluted share in the second quarter of 2018.
Second-quarter 2019 sales were $733 million, compared with $758 million in the second quarter of 2018. The decrease of $25 million is primarily due to unfavorable vehicle production volumes, customer pricing and unfavorable currency, partially offset by new business and the consolidation of a previously non-consolidated affiliate. Gross margin for the second quarter of 2019 was $70 million, compared with $104 million in the same quarter in 2018. The decrease is primarily due to lower OEM volumes and unfavorable mix, pricing, currency, and timing of engineering expenses.
During the first half of 2019, global vehicle manufacturers awarded Visteon new business of $3.2 billion in lifetime sales, with more than 60 percent from next-generation digital products -- including three wins powered by Visteon's industry-first SmartCore™ domain controller. More than one third of the wins are on electric vehicle platforms.
Despite the challenging vehicle production environment, our second-quarter sales outperformed the industry, particularly in China. We continued to gain momentum in winning next-generation digital platforms, including an Android-based display audio system with a European automaker, a multi-display module with a Korean vehicle manufacturer, and a cross-platform SmartCore™ award with a China-based automaker. Our pipeline of new business opportunities remains robust despite the near-term uncertainty, which reinforces our confidence in the long-term prospects of the business.
Second Quarter in Review
Sales in the second quarter totaled $733 million, compared with $758 million in the second quarter of 2018. On a regional basis, in the second quarter of 2019, Europe accounted for 31 percent of sales, the Americas 27 percent, China Domestic 16 percent, China Export 8 percent and Other Asia-Pacific 18 percent.
Adjusted EBITDA, a non-GAAP measure as defined below, was $46 million for the second quarter of 2019, compared with $81 million for the same quarter last year. Adjusted EBITDA margin was 6.3 percent for the second quarter of 2019.
For the second quarter of 2019, net income attributable to Visteon was $7 million or $0.25 per diluted share, compared with $35 million or $1.17 per diluted share for the same period in 2018. Adjusted net income, which excludes restructuring charges and discontinued operations, was $8 million or $0.28 per diluted share for the second quarter of 2019, compared with $41 million or $1.37 per diluted share for the same period in 2018.
The company had 28.1 million diluted shares of common stock outstanding as of June 30, 2019.
Cash and Debt Balances
As of June 30, 2019, Visteon remained in a net positive cash position with cash of $438 million and debt of $402 million.
For the second quarter of 2019, cash provided from operations was $57 million and capital expenditures were $34 million. Total Visteon adjusted free cash flow, a non-GAAP financial measure as defined below, for the second quarter was $28 million, compared with $29 million during the second quarter of 2018.
During the second quarter of 2019, the company repurchased 322,120 shares at an average price of $62.06 for a total of $20 million. Visteon has a remaining share repurchase authorization of $380 million.
Full-Year 2019 Outlook
Visteon updated its full-year 2019 guidance, with sales in the range of $2.9 billion to $3.0 billion, adjusted EBITDA in the range of $230 million to $250 million, and adjusted free cash flow in the range of $30 million to $50 million.
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, 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 $3 billion in 2018. Learn more at www.visteon.com.
Conference Call and Presentation
Today, Thursday, July 25, 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:
Outside U.S./Canada: 970-297-2404
(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. A news release on Visteon’s first-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 7892819. The phone replay will be available for one week following the conference call.