Visteon reported net sales of US$1,026 mln 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 US$104 mln, and net income attributable to Visteon was US$44 mln or US$1.54 per diluted share. Adjusted EBITDA, a non-GAAP measure as defined below, was $95 mln for the third quarter or 9.3% of sales, an increase of $53 mln 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, cash provided by operations was $2 mln and cash used for capital expenditures was $54 mln. Adjusted free cash flow, a non-GAAP financial measure as defined below, was a use of cash of $40 mln 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 mln and debt of US$349 mln equating to a net cash position of US$16 mln.
Visteon continued its robust new programme launch cadence in the quarter with five new programmes bringing the total to 32 new programme 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 programmes.
The company has won US$5.0 bln 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 programme 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 programme with a passenger display and our first multi-display programme win with this OEM. Additionally, Visteon won digital cluster and centre display programmes for an electric vehicle-line with a North American OEM.
“Our 14th consecutive growth-over-market quarter speaks to the sustained demand for our digital products. 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.”
says Sachin Lawande, President and CEO, Visteon.
Visteon is increasing its full-year 2022 guidance for sales and Adjusted EBITDA as it now anticipates sales in the range of approximately US$3.6 – US$3.7 bln and Adjusted EBITDA in the range of US$325 – US$345 mln. Additionally, Visteon is now anticipating Adjusted Free Cash Flow in the range of US$30 – US$70 mln.