Visteon Corp., which supplies automotive cockpit electronics globally, reported a boost in fourth-quarter net income along with a marginal decrease in revenue.
Net income in the quarter rose 72 percent to $43 million, in part because the company took a one-time charge of $33 million for divestitures during the previous year. The company's income tax provision for was quarter was $1 million, compared with $14 million a year earlier.
Adjusted earnings during the quarter fell 27 percent to $74 million.
Visteon reported revenue of $731 million in the quarter, a decrease of 9 percent from a year earlier. Much of the decrease was the result of unfavorable vehicle production volumes, customer pricing and unfavorable currency impacts.
Despite the headwinds, Visteon's shares climbed after its earning report, closing up 8.7 percent to $90.07.
For 2018, the company's revenue fell 5 percent to $2.98 billion. Full-year net income slipped 7.3 percent to $164 million.
Global vehicle manufacturers in 2018 awarded Visteon new business of $6.9 billion, driven by new digital products, primarily all-digital clusters and audio infotainment.
"We launched the industry's first production cockpit domain controller with Daimler and secured significant new business wins in the fast-growing digital cluster and infotainment segments," CEO Sachin Lawande said in a statement. "By winning approximately $7 billion in new business for the second consecutive year — and adding five new customers in the process — we strengthened Visteon's position toward achieving our long-term growth targets."
Visteon's 2019 outlook includes:
- Sales target: $2.9 billion-$3 billion
- Adjusted earnings: $280 million-$310 million
- Adjusted free cash flow: $80 million-$100 million
Visteon, the onetime Ford Motor Co. parts unit based in suburban Detroit, ranks No. 69 on Automotive News' list of the top global parts suppliers, with global sales to automakers of $3.15 billion in 2017.