Visteon has announced a strong set of results for the first quarter buoyed by rising demand for its infotainment products in China.
Visteon Corporation reported sales of USD810m compared with USD802m in 2016. First quarter net income attributable to Visteon was USD63m or USD1.91 per diluted share for 2017, compared with USD19m or USD0.49 per diluted share for Q1 2016. The sales increase is primarily related to higher electronics production volumes and new product launches, partially offset by unfavourable currency and the exit of other operations.
Electronics first quarter net income was USD55m compared with USD38m for Q1 2016.
Visteon said that during the first quarter, global vehicle manufacturers awarded Visteon new business of USD1.5bn in lifetime revenue. The ongoing backlog, defined as cumulative remaining life-of-program booked sales, was approximately USD16.7bn as of March 31, 2017, up from USD16.5bn at the end of 2016.
“We had a strong first quarter, highlighted by record Electronics sales and adjusted EBITDA,” said Visteon President and CEO Sachin Lawande. “We won significant new business that raised our order backlog to an all-time high, with noteworthy wins in infotainment and in Asia – including our third SmartCore cockpit domain controller win and our first in China. We also benefited from key product launches at the end of 2016 and in early 2017. Our continued focus on operational improvements helped drive adjusted EBITDA as a percent of sales to 12.5 percent.”
On a regional basis, Asia accounted for 37% of sales, Europe 33%, North America 28% and South America 2%.
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By the end of 2016, Visteon exited its other operations, consisting of climate operations in South America and South Africa.
Visteon affirmed its full-year 2017 guidance for its key financial metrics. The company projects 2017 sales of USD3.1bn to USD3.2bn. Adjusted EBITDA is projected in the range of USD355m to USD370m.