Automotive electronic supplier Visteon Corp.'s net income continued its upward trajectory in the third quarter, owing to new product launches and redesigns aimed at coping with the semiconductor shortage.
The Van Buren Township, Mich.-based company, which primarily makes cockpit electronics products, reported a 780 percent increase in net income to $44 million, up from $5 million in 2021. Net sales rose a more tempered 63 percent to $1.026 billion from $631 million.
Gross margin in the third quarter was $104 million, up 121 percent from $47 million.
Visteon's third-quarter success, as well as its 2022 success as a whole, can be attributed to the company's new releases and ability to cope with the semiconductor shortage plaguing the automotive industry, said the company.
The supplier launched five new programs this quarter, including a digital cluster for the Nissan Serena and Mercedes-Benz EQS SUV. About a quarter of its new launches this year have been for electric vehicles.
In a Thursday earnings call, Visteon said the ongoing semiconductor shortage has caused trouble, but that the company has redesigned more than 20 products to cope with the problem.
"Semiconductor supply remains inherently unpredictable, with many critical chips having no buffer in the supply chain," Sachin Lawande, CEO of Visteon, said during his remarks.
Visteon shares rose about 1.3 percent to $129.90 in Thursday mid-morning trading.
Visteon ranks No. 66 on the Automotive News' 2022 list of the top 100 global suppliers with worldwide sales to automakers of $2.73 billion in 2021.