Visteon has recorded third-quarter net sales down 17% to US$631m, excluding the impact of currency.
Total industry production decreased 20% while vehicle production at Visteon’s top customers decreased 25% in the same period, reflecting supply chain constraints and the worldwide semiconductor shortage.
Gross margin in the third quarter was US$47m and net income attributable to Visteon was US$5m.
Adjusted EBITDA was US$42m for the third quarter or 6.7% of sales, a decrease of US$45m compared to the prior year.
The decrease in adjusted EBITDA reflects the impact of lower vehicle volumes, supply chain and material costs increases and the non-recurrence of temporary austerity measures implemented in 2020, partially offset by the year-over-year savings related to 2020 structural costs reductions.
Visteon launched 26 new products through the third quarter with more than 20 planned for the fourth quarter.
The company won US$3.8bn in new business through the first three quarters of the year, around 30% of which were for electric vehicle programmes.
Third quarter wins include a SmartCore programme and a 15-inch OLED display for infotainment.
Visteon’s full-year 2021 guidance is being updated to reflect the latest supply chain environment. The company now projects full-year sales in the range of US$2.6bn to US$2.65bn, adjusted EBITDA in the range of US$165m to US$175m and adjusted free cash flow to be break-even.
“I am proud of Visteon’s resilient third quarter performance that delivered improved results versus the second quarter and better-than-market sales performance despite the semiconductor shortages,” said Visteon president and CEO, Sachin Lawande.
“The structural costs actions we implemented last year have allowed us to navigate the ongoing challenges this year while also positioning us to expand margins as industry volumes eventually increase.”