On October 26, 2023, Visteon Corp (VC, Financial) released its third-quarter 2023 financial results. The company reported net sales of $1,014 million, a slight decrease from $1,026 million in the same quarter of the previous year. However, when excluding the impact of currency and pricing from supply chain recoveries, Visteon's base sales grew 9% from the prior year. This growth was driven by the ongoing ramp-up of recent product launches.
Financial Performance
The company's gross margin in the third quarter was $143 million, and net income attributable to Visteon was $66 million or $2.32 per diluted share. Adjusted EBITDA, a non-GAAP measure, was $128 million for the third quarter or 12.6% of sales, an increase of $33 million compared to the prior year. The increase in adjusted EBITDA primarily reflects the favorable impact of higher sales volumes and strong operating performance combined with the timing of favorable commercial items.
For the first nine months, cash provided by operations was $169 million, capital expenditures were $82 million, and adjusted free cash flow was $93 million. The company ended the third quarter with cash of $485 million and debt of $341 million.
New Business Wins and Product Launches
Visteon's products launched on 33 vehicle models in the third quarter. Key product launches included a follow-on digital cluster launch on the Mercedes EQE, a new hybrid cluster program on the Ford Transit Custom and Transit Courier in Europe, and follow-on digital cluster launches on three high volume vehicle lines for Tata in India. Visteon has secured $5.8 billion in new business through the first nine months of the year.
Updated Guidance
Visteon is updating its full-year 2023 guidance and anticipates sales in the range of $3.950 – $4.025 billion, adjusted EBITDA in the range of $415 – $445 million, and adjusted free cash flow in the range of $115 – $165 million.
CEO's Commentary
“We delivered strong results in the third quarter and continued to strengthen our foundation for future growth,” said Sachin Lawande, President and CEO. “I am proud of our recent win for our AllGo™ App Store, which demonstrates that our product portfolio continues to anticipate market trends.”
For more detailed information, please refer to the official earnings release.
Explore the complete 8-K earnings release (here) from Visteon Corp for further details.
