Visteon Corp. said today it posted a small but improved profit during the third quarter -- its first quarter as a supplier focused solely on cockpit electronics.
The suburban Detroit supplier said it posted net income of $5 million, or 12 cents per share, on revenue of $808 million. That’s compared with a loss of $21 million, or 48 cents, on revenue of $793 million during the same quarter last year.
Adjusted net income was at $23 million in the quarter, or 56 cents per share, beating Wall Street analysts’ expectations. A Wells Fargo note said analysts expected 30 cents per share.
Visteon, which spun off from Ford Motor Co. in 2000, once made a variety of products from climate control units to headlights. It is now focused on cockpit electronics such as infortainment displays.
“Visteon is focused on creating value for customers and shareholders by improving the cockpit electronics user experience across product lines that are expected to grow faster than the overall automotive market,” CEO Sachin Lawande said in a statement.
Visteon said 37 percent of its sales came from Asia, compared with 31 percent from Europe, 30 percent in North America and 2 percent in South America. Ford accounted for 31 percent of Visteon’s electronics business, while Mazda, Nissan and General Motors accounted for 18 percent, 9 percent and 6 percent, respectively.
Visteon’s emphasis on electronics began in 2014, when Visteon sold its interiors unit, soon followed by the sale of its climate control division for $3.6 billion this year. Visteon also bought Johnson Controls Inc.’s electronics unit in 2014 in a $265 million deal.
The company said it began a stock buyback program on June 16 to purchase shares for an initial $500 million payout. It is expected to be completed by the end of the year and is part of a larger plan to return up to $2.75 billion to shareholders by June.
“As such, possible acquisitions will likely be funded by free cash flow and debt,” Wells Fargo senior analyst David Lim said in a note following Visteon’s conference call. “CEO Lawande mentioned that [Visteon] is looking for technology and tuck-in buys.”