VAN BUREN TOWNSHIP (WWJ) — Visteon Corp. Thursday announced net income of $65 million or $1.29 a share in the second quarter ended June 30, down from $75 million or $1.40 a share a year earlier.
Revenue was $1.89 billion, up from $1.69 billion a year earlier.
For the six months, net income was $134 million or $2.61 a share, up from $46 million or 86 cents a share a year earlier. Revenue was $3.75 billion for the first half, up from $3.41 billion a year earlier.
Last year’s second quarter included a one-time gain of $63 million on an equity investment.
What Visteon calls “Adjusted EBITDA” for the second quarter was $187 million, up from $147 million in the second quarter of 2012. Visteon defines adjusted EBITDA as “net income attributable to Visteon, plus net interest expense, provision for income taxes and depreciation and amortization, as further adjusted to eliminate the impact of asset impairments, gains or losses on divestitures, discontinued operations, net restructuring expenses and other reimbursable costs, stock-based compensation expense, certain non-recurring employee charges and benefits, reorganization items, and other non-operating gains and losses.”
Visteon also increased its 2013 full-year outlook for several key financial metrics, based on improved business conditions compared with earlier planning expectations.
“We had a very strong quarter and continue to benefit from the momentum of our value-creating strategic plan,” said Tim Leuliette, president and CEO. “I am pleased that key performance metrics of sales, gross margin and adjusted EBITDA improved year-over-year in all regions, including Europe, where the overall economy remains weak. We are raising full-year guidance in view of our positive performance and generally favorable business conditions in key markets. Our strong technology is positively impacting our results, as key new vehicle programs with Visteon content — particularly in climate and electronics — launch around the world. We remain focused on implementing strategic actions to further drive value for customers and shareholders.”
Hyundai-Kia accounted for approximately 33 percent of Visteon’s second-quarter sales, with Ford Motor Co. accounting for 31 percent, Renault-Nissan 7 percent and PSA Peugeot-Citroën 4 percent. On a regional basis, Asia accounted for 43 percent of sales, Europe represented 31 percent, North America 20 percent and South America 6 percent.
Gross margin for the second quarter of 2013 was $185 million, compared with $128 million a year earlier. Gross margin increased $57 million year-over-year, reflecting higher sales volume and new business impacts. Selling, general and administrative expenses were $91 million, or 4.8 percent of sales, for the second quarter of 2013 compared to $87 million, or 5.1 percent of sales, a year earlier.
Climate sales totaled $1.247 billion during the second quarter of 2013, an increase of $182 million compared with the same quarter last year. Higher production volumes and new business, increased sales in all regions, with the largest increase in the Asia Pacific region.
Electronics sales were $354 million during the second quarter of 2013, an increase of $50 million compared with the same period in 2012. Higher production volumes increased sales year-over-year in all regions, with the largest increases in North America and Europe.
Interiors sales were $334 million during the second quarter of 2013, a decrease of $18 million, compared with the second quarter of 2012. The sales decrease was primarily in Europe and South America in connection with weakened economic conditions.
As of June 30, Visteon had global cash balances totaling $1 billion, including restricted cash of $25 million. Total debt as of June 30, 2013 was $799 million.
Visteon raised full-year guidance for most financial metrics. The company now projects 2013 sales ranging from $7.3 billion to $7.5 billion, adjusted EBITDA in the range of $660 million to $690 million, and adjusted free cash flow, as defined below, of $135 million to $170 million.
To listen to a replay of the conference call discussing these results, call (855) 859-2056 in the United States and Canada and (404) 537-3406 elsewhere, using the pass code 19016762. The phone replay will be available until Aug. 15.
More at http://www.visteon.com.