• Sales up $139m to $1.86bn 
  • Net income rises $98m to $69m
  • Adjusted EBITDA up$27m to $170m

Visteon booked first quarter net income of US$69m, or $1.33 per share, compared with a net loss of $29m, (-$0.56) in the first quarter of 2012.

Sales rose $129m to $1.86bn due to increased vehicle production and new business in Asia and North America, offset somewhat by lower volumes in Europe.

First-quarter adjusted EBITDA was $170m, up from $143m a year ago.

"We are pleased with our first-quarter performance, which represents a significant year-over-year improvement and validates that our strategic plan to deliver value for customers and shareholders continues to gain momentum," said Tim Leuliette, president and CEO.

"The benefits of our value-creating strategy are beginning to be recognised - in the recent all-time high share trading price of Halla Visteon Climate Control, for example. We continue to aggressively move forward with our plan and are committed to having our progress recognized appropriately in Visteon's share trading price."

On 31 January, Visteon and its 70%-owned Korean affiliate Halla Climate Control Corporation completed a deal combining the majority of Visteon's automotive climate business under Halla Visteon Climate Control. The transaction was divided into two phases, with the second phase now largely complete and on track to be finished in the first half.

Visteon reaffirmed full-year guidance, projecting 2013 sales ranging from $7.3bn to $7.5bn, and adjusted EBITDA in the range of $620m to $660m. It updated guidance for adjusted earnings per share to $4.04 to $5.52.

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Visteon Announces First-Quarter 2013 Results; Accelerates Value Creation

 

VAN BUREN TOWNSHIP, Mich., May 9, 2013 /PRNewswire/ --

 

   --  Achieved significant year-over-year financial improvement

       --  Sales of $1.86 billion, up $139 million

       --  Net income attributable to Visteon of $69 million, up $98 million

       --  Adjusted EBITDA of $170 million, up $27 million

   --  Sustained strong cash position while creating value

       --  Cash from operations of $122 million, up $103 million year-over-year

       --  Adjusted free cash flow of $95 million, up $69 million

       --  Cash balances of $995 million, of which $384 million at U.S. parent;

           total debt of $777 million

   --  Repurchased 2.2 million shares ($125 million) year-to-date, representing

       4 percent of outstanding shares

   --  Integrated majority of global climate business into Halla Visteon

       Climate Control (HVCC); HVCC shares repeatedly setting all-time highs in

       April/May

   --  2013 full-year EPS outlook increased to reflect impact of updated income

       tax projections

Visteon Corporation (NYSE: VC) today announced first-quarter 2013 results, reporting net income attributable to Visteon of $69 million, or $1.33 per diluted share, compared with a net loss of $29 million, or $0.56 per diluted share, in the first quarter of 2012.

 

(Logo: http://photos.prnewswire.com/prnh/20001201/DEF008LOGO )

 

Visteon reported first-quarter sales of $1.86 billion, an increase of $139 million compared with the same quarter a year earlier. Sales were higher due to increased vehicle production and new business in Asia and North America, partially offset by lower production volumes in Europe. First-quarter adjusted EBITDA, a non-GAAP financial measure as defined below, was $170 million, increasing from $143 million for the same period last year.

 

"We are pleased with our first-quarter performance, which represents a significant year-over-year improvement and validates that our strategic plan to deliver value for customers and shareholders continues to gain momentum," said Tim Leuliette, president and CEO. "The benefits of our value-creating strategy are beginning to be recognized - in the recent all-time high share trading price of Halla Visteon Climate Control, for example. We continue to aggressively move forward with our plan and are committed to having our progress recognized appropriately in Visteon's share trading price."

 

Cash from operating activities totaled $122 million, an increase of $103 million compared with the same period in 2012. Adjusted free cash flow, a non-GAAP financial measure as defined below, of $95 million for the first quarter of 2013 improved by $69 million compared with the first quarter of 2012.

 

First-quarter 2013 net income included a benefit of $54 million related to the outcome of certain tax proceedings, partially offset by $36 million of restructuring and other transformational costs.

 

Other Developments

 

Since Jan. 1, 2013, the company has repurchased $125 million in common shares under its $300 million repurchase program. Shares repurchased since the program began total $175 million.

 

On Jan. 31, Visteon and its 70 percent-owned Korean affiliate Halla Climate Control Corporation completed a transaction combining the majority of Visteon's automotive climate business under Halla Visteon Climate Control. The transaction was divided into two phases, with the second phase now largely complete and on track to be finished in the first half of 2013.

 

First Quarter in Review

 

Hyundai-Kia accounted for approximately 33 percent of Visteon's first-quarter product sales, with Ford Motor Company accounting for 28 percent, Renault-Nissan 7 percent and PSA Peugeot-Citroen 4 percent. On a regional basis, Asia accounted for 46 percent of total product sales -- up from 43 percent a year earlier -- while Europe represented 30 percent, North America 19 percent and South America 5 percent.

 

Gross margin for the first quarter of 2013 was $154 million, compared with $134 million a year earlier. Gross margin increased $20 million year-over-year, reflecting volume and new business impacts, partially offset by increased product development costs incurred to support future growth. Selling, general and administrative (SG&A) expenses of $86 million for the first quarter of 2013 decreased $5 million, to 4.6 percent of product sales.

 

During the first quarter of 2013, Visteon recognized $44 million of equity in the net income of non-consolidated affiliates, compared with $42 million in the first quarter of 2012. Visteon's 50 percent-owned affiliate, Yanfeng Visteon Automotive Trim Systems Co., Ltd., and related affiliate interests contributed $41 million in equity income.

 

For the first quarter of 2013, the company reported net income of $69 million, or $1.33 per diluted share, which included a $54 million benefit related to the outcome of certain tax proceedings and $36 million of costs associated with restructuring and related activities. This compares with a net loss of $29 million for the same period in 2012, which included $63 million in restructuring and related costs. Adjusted EBITDA for the first quarter of 2013 was $170 million, compared with $143 million for the same period a year earlier. On a year-over-year basis, increases in adjusted EBITDA reflect favorable volume and new business, partially offset by net cost performance.

 

First Quarter Results by Segment

 

Climate sales increased by $205 million during the first quarter of 2013, compared with the same quarter last year. Higher production volumes and new business, primarily in Asia and North America, increased sales by $199 million.

 

Electronics sales increased $36 million during the first quarter, compared with the same period in 2012. Vehicle production volume increases in North America, partially offset by European volume declines, resulted in a $38 million sales increase.

 

Interiors sales decreased during the quarter by $76 million, compared with the first quarter of 2012. Sales decreased $62 million due to volume declines, primarily in Europe, in connection with weakened economic conditions. Unfavorable currency, primarily related to the euro, decreased sales by an additional $7 million.

 

Cash and Debt Balances

 

As of March 31, 2013, Visteon had global cash balances totaling $995 million, including restricted cash of $15 million, and total debt of $777 million.

 

For the first quarter of 2013, Visteon generated $122 million of cash from operations, compared with $19 million in the same period a year earlier, primarily driven by higher earnings and trade working capital. Capital expenditures in the quarter were $63 million, up from $53 million in the first quarter of 2012. Adjusted free cash flow was positive $95 million in the quarter, compared with $26 million in the first quarter of 2012.

 

Full-Year 2013 Outlook


Visteon reaffirmed full-year guidance for most financial metrics. The company projects 2013 sales ranging from $7.3 billion to $7.5 billion, adjusted EBITDA in the range of $620 million to $660 million, and adjusted free cash flow, as defined below, of $100 million to $150 million. To reflect the impact of updated income tax projections, Visteon updated its full-year guidance for adjusted earnings per share, a non-GAAP measure as defined below, to a range of $4.04 to $5.52.

 

Original source: PRN