Visteon Corp

VC

Equity

ISIN US92839U2069 / Valor 11811243

NASDAQ (2024-09-17)

USD 93.57+3.06%

Visteon Corp
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About company

Visteon Corp is a leading global technology company specializing in the automotive industry, particularly focusing on the development of advanced energy and power management solutions for electric vehicles (EVs). The company's offerings include innovative wired and wireless Battery Management Systems (BMS) that aim to improve battery performance and longevity through real-time monitoring and optimization of charging and discharging patterns. Visteon is at the forefront of creating flexible hardware and software for power electronics converters and distribution components, facilitating the adoption of next-generation high-voltage EV architectures. Additionally, Visteon has made significant strides in digital cockpit technologies since launching the industry's first domain controller in 2018. Its SmartCore™ technology integrates various cockpit functions such as the instrument cluster, infotainment, and connectivity into a single system, supporting over-the-air updates and compatibility with the Android Automotive OS-based AllGo Automotive App Store. With its headquarters in Van Buren Township, Michigan, Visteon operates across 17 countries, achieving approximately $3.95 billion in annual sales and securing $7.2 billion in new business in 2023, underscoring its pivotal role in the transition towards more connected and software-defined vehicles.

Summarized from source with an LLMView SourceSector: Consumer Cyclicals

Fourth Quarter Financial Results

Visteon Corp reported net sales of $990 million in the fourth quarter of 2023, a decrease from $1,064 million in the same quarter of the previous year. The decline was primarily due to lower recoveries resulting from improved semiconductor supply. Excluding these recoveries, base sales grew by 1% year-over-year. The gross margin for the quarter was $130 million, and net income attributable to Visteon was $366 million, or $12.98 per diluted share, including a significant non-cash tax benefit.

Full-Year Financial Results

For the full year 2023, Visteon Corp achieved record net sales of $3,954 million, marking a 5% increase from the previous year. Excluding the impact of supply chain recoveries, base sales grew by 12%. The company reported a gross margin of $487 million and net income of $486 million, or $17.05 per diluted share. Adjusted EBITDA reached a record $434 million, reflecting a year-over-year increase of $86 million, driven by higher sales and an efficient cost structure.

Cash Flow and Share Repurchase

Visteon Corp generated $267 million in operating cash flow and $150 million in adjusted free cash flow for the full year 2023. The company also repurchased $106 million worth of shares under its $300 million share repurchase authorization announced in March 2023. The strong cash flow performance was attributed to improved adjusted EBITDA and working capital management, despite higher capital expenditures to support growth.

New Business Wins and Product Launches

In 2023, Visteon Corp secured $7.2 billion in new business, leveraging its diversified product portfolio focused on digitalization and electrification. The company launched 129 new products during the year, including significant wins in infotainment systems and digital clusters. Key fourth-quarter product launches included the SmartCore™ cockpit domain controller and displays for various global OEMs, reinforcing Visteon's market position.

Outlook for 2024

Visteon Corp's guidance for 2024 anticipates sales between $4.0 billion and $4.2 billion, with adjusted EBITDA ranging from $470 million to $500 million. The company also expects adjusted free cash flow to be between $155 million and $185 million. CEO Sachin Lawande highlighted the strong performance in 2023 and the foundation laid for continued growth, driven by new business wins and product launches.

Summarized from source with an LLMView Source

Key figures

-32.3%1Y

-1.98%3Y

20.1%5Y

Performance

31.3%1Y

40.3%3Y

45.6%5Y

Volatility