Visteon Corp. said Thursday that cost management and product launches helped the company post higher adjusted profits and sales in the third quarter.
The cockpit electronics supplier reported third-quarter net income of $6 million, a 57 percent drop from the same period last year but up from a loss of $45 million in the second quarter, when many auto plants were shuttered because of the COVID-19 pandemic. Net income included restructuring charges of $32 million.
Adjusted net income more than doubled to $38 million in the quarter, while adjusted earnings before interest, taxes, depreciation and amortization rose 40 percent to $87 million.
Sales were up 2.2 percent to $747 million compared with the year-ago period.
Visteon CEO Sachin Lawande said in a call with media and analysts that resilient employees and product launches helped the company outperform the overall market.
The supplier said it launched a record 23 products in the third quarter, totaling 44 for the year to date. Launches include components on the Ford F-150, Mercedes-Benz S-Class, Mazda CX-5, Buick Envision and Peugeot 308.
"The combined projected lifetime revenue of these 23 launches is more than $2.5 billion, and will help Visteon continue our market outperformance in the coming quarters," Lawande said a statement. He said the company showed its ability to launch products during a challenging time while keeping costs down.
Visteon said it won $1.5 billion in new contracts in the third quarter including a 12-inch display for a Japanese OEM.
The company said it repaid in full $400 million of the revolving credit facility it drew at the end of the first quarter and ended the third quarter with cash of $435 million and debt of $348 million, representing a net cash position of $87 million.
Shares of Visteon closed Thursday's trading up 7.3 percent to $88.41.
Visteon, of Van Buren Township, Mich., ranks No. 69 on the Automotive News list of the top 100 global suppliers, with worldwide parts sales to automakers of $2.94 billion in 2019.
