While Verrier acknowledged that North American light-vehicle sales are reaching the peak of a cyclical cycle, he said he remains confident in the company's growth over the next year. The turbocharger and emissions systems supplier won additional hybrid and electrical vehicle work in the quarter, positioning itself for a future of decreasing vehicle emissions.
Visteon Corp.'s year-over-year net income soared from $19 million to $63 million for the quarter, the electronics supplier said last week. Removing the $8 million attributable to discontinued operations, the $55 million in net earnings represented a 45 percent improvement from the previous year.
Visteon reported last week that it won $1.5 billion in new business during the first quarter, 44 percent of it in infotainment systems. Despite the wave of positive results, Wall Street still may not be convinced of auto suppliers as an investment opportunity.
Looking at Lear's results, Barclays wrote that "While we think [Lear] stock deserves to be rewarded, we are yet again faced with another quarter where despite strong results, investors may fade the results."
Barclays also said it expects Lear's solid organic growth to continue through 2017, but then soften in 2018 and 2019.
Germany's Continental said Friday, April 28, that its first quarter also delivered strong gains. Although its official numbers will not be out until May 9, the diversified supplier said sales were up 12 percent, due mostly to organic growth, with increases in before-tax income.
"Continental made a very good start to the new fiscal year in a volatile environment," CEO Elmar Degenhart said at the annual shareholders' meeting in Hanover on Friday, according to a company statement. "Despite increased raw material costs, all indications are that we will comfortably achieve the ambitious targets we set ourselves for 2017."