Visteon clocks strong performance in 2016

Visteon Corporation, which designs, engineers and manufactures innovative cockpit electronics products and connected car solutions for most of the world’s major vehicle manufacturers, has announced strong full-year 2016 results, reporting net income attributable to Visteon of $75 million, including $49 million of restructuring expense, $24 million of other net expense and $40 million of net loss associated with discontinued operations.

Full-year sales were $3,161 million, a decrease of $84 million compared with 2015, primarily attributable to the sale of an interiors European facility in 2015. Net cash provided from operating activities was $120 million for full year 2016.

In 2016, global vehicle manufacturers awarded Visteon new business of $5.4 billion in lifetime revenue. Fourth-quarter wins totaled $1.3 billion. The ongoing backlog, defined as cumulative remaining life-of-program booked sales, was approximately $16.5 billion as of December 31, 2016, up from $14.9 billion in 2015, an increase of 11 percent.

“We finished the year very strong and delivered exceptional financial results in 2016, a year in which we transformed Visteon into a leading player in the cockpit electronics segment,” said Visteon president and CEO Sachin Lawande. “We returned $2.2 billion in capital to investors during the year, while making significant progress on our strategic priorities, including winning $5.4 billion in new business – primarily in China and Western Europe – and executing a record 59 product launches.”

Lawande added: “As the shift toward the all-digital cockpit gains momentum, we are very well-positioned to capitalize on opportunities as the only pure-play automotive cockpit electronics supplier. Our focus, strong balance sheet and broad product and technology portfolio place us in a formidable position to deliver industry-leading performance for our shareholders, customers and employees. Our $16.5 billion business backlog provides a solid foundation to execute our five-year plan and grow sales to $4.7 billion by 2021.”

Full-year 2017 outlook
Visteon projects Electronics Product Group 2017 sales of $3.1 billion to $3.2 billion. Adjusted EBITDA for the Electronics Product Group is projected in the range of $355 million to $370 million. Adjusted free cash flow for the Electronics Product Group is projected in the range of $165 million to $180 million.