This quarterly report represents an earnings surprise of 29.59%. A quarter ago, it was expected that this auto parts supplier would post earnings of $1.75 per share when it actually produced earnings of $1.61, delivering a surprise of -8%. Visteon, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $1.01 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate by 0.53%. This compares to year-ago revenues of $983 million. The company has not been able ...

Part I - Financial Information This section provides Visteon Corporation's interim financial statements and related disclosures [Item 1 - Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201%20-%20Condensed%20Consolidated%20Financial%20Statements) This section presents Visteon Corporation's unaudited condensed consolidated financial statements, including statements of comprehensive income (loss), balance sheets, cash flows, and changes in equity, along with detailed notes explaining significant accounting policies, investments, restructuring, and other financial details for the periods ended June 30, **2024**, and December 31, **2023** [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) This statement details Visteon Corporation's revenues, expenses, and net income (loss) over specified periods Condensed Consolidated Statements of Comprehensive Income (Loss) (In millions except per share amounts) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:------------------------------------------------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------| | Net sales | $1,014 | $983 | $1,947 | $1,950 | | Gross margin | $147 | $104 | $266 | $214 | | Income (loss) before income taxes | $100 | $36 | $163 | $88 | | Provision for income taxes | $(25) | $(13) | $(44) | $(27) | | Net income (loss) | $75 | $23 | $119 | $61 | | Net income (loss) attributable to Visteon Corporation | $71 | $20 | $113 | $54 | | Basic earnings (loss) per share | $2.57 | $0.71 | $4.09 | $1.91 | | Diluted earnings (loss) per share | $2.54 | $0.70 | $4.05 | $1.88 | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement presents Visteon Corporation's assets, liabilities, and equity at specific points in time Condensed Consolidated Balance Sheets (In millions) | Metric | June 30, 2024 | December 31, 2023 | |:----------------------------------------|:--------------|:------------------| | **ASSETS** | | | | Cash and equivalents | $505 | $515 | | Total current assets | $1,641 | $1,616 | | Total assets | $2,731 | $2,727 | | **LIABILITIES AND EQUITY** | | | | Short-term debt | $18 | $18 | | Total current liabilities | $887 | $931 | | Long-term debt, net | $309 | $318 | | Total Visteon Corporation stockholders' equity | $1,113 | $1,038 | | Total equity | $1,198 | $1,123 | | Total liabilities and equity | $2,731 | $2,727 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement outlines Visteon Corporation's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (In millions) | Metric | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:------------------------------------------------|:-------------------------------|:-------------------------------| | Net income (loss) | $119 | $61 | | Net cash provided from (used by) operating activities | $126 | $42 | | Net cash used by investing activities | $(72) | $(49) | | Net cash used by financing activities | $(36) | $(57) | | Net decrease in cash, equivalents, and restricted cash | $(10) | $(64) | | Cash, equivalents, and restricted cash at end of the period | $508 | $459 | [Condensed Consolidated Statements of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) This statement tracks changes in Visteon Corporation's equity components, including common stock, retained earnings, and treasury stock Condensed Consolidated Statements of Changes in Equity (In millions) | Metric | December 31, 2023 | March 31, 2024 | June 30, 2024 | |:----------------------------------------|:------------------|:---------------|:--------------| | Common Stock | $1 | $1 | $1 | | Additional Paid-In Capital | $1,356 | $1,350 | $1,360 | | Retained Earnings | $2,274 | $2,316 | $2,387 | | Accumulated Other Comprehensive Income (Loss) | $(254) | $(268) | $(286) | | Treasury Stock | $(2,339) | $(2,350) | $(2,349) | | Total Visteon Corporation Stockholders' Equity | $1,038 | $1,049 | $1,113 | | NonControlling Interests | $85 | $85 | $85 | | Total Equity | $1,123 | $1,134 | $1,198 | - The company repurchased **$20 million** of common stock during the six months ended **June 30, 2024**[41](index=41&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [NOTE 1. Summary of Significant Accounting Policies](index=7&type=section&id=NOTE%201.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the key accounting principles and methods used in preparing the financial statements - The allowance for doubtful accounts was **$8 million** as of **June 30, 2024**, an increase from **$7 million** as of **December 31, 2023**[45](index=45&type=chunk) - The company is evaluating the impacts of new accounting pronouncements: ASU **2023**-05 (Joint Venture Formation), ASU **2023**-06 (Disclosure Improvements), ASU **2023**-07 (Segment Reporting), and ASU **2023**-09 (Enhanced Income Tax Disclosures)[46](index=46&type=chunk)[19](index=19&type=chunk)[47](index=47&type=chunk)[103](index=103&type=chunk) [NOTE 2. Non-Consolidated Affiliates](index=9&type=section&id=NOTE%202.%20Non-Consolidated%20Affiliates) This note details the Company's investments in and financial relationships with non-consolidated entities Investments in Non-Consolidated Affiliates (In millions) | Affiliate | June 30, 2024 | December 31, 2023 | |:----------------------------------------|:--------------|:------------------| | Yanfeng Visteon Investment Co., Ltd. ("YFVIC") | $1 | $8 | | Limited partnerships | $15 | $15 | | Other | $9 | $12 | | Total investments | $25 | $35 | Exposure to Loss in YFVIC (In millions) | Metric | June 30, 2024 | December 31, 2023 | |:----------------------------------------|:--------------|:------------------| | Payables due to YFVIC | $18 | $24 | | Investment in YFVIC | $1 | $8 | | Receivables due from YFVIC, net | $13 | $19 | | Loan receivable from YFVIC | $5 | $0 | | Maximum exposure to loss in YFVIC | $19 | $27 | - The Company extended a **$5 million** loan to YFVIC during the **second quarter of 2024**[49](index=49&type=chunk) - As of **June 30, 2024**, the Company has contributed approximately **$12 million** towards a **$15 million** commitment in two limited partnerships focused on the automotive sector[50](index=50&type=chunk) [NOTE 3. Restructuring](index=10&type=section&id=NOTE%203.%20Restructuring) This note provides information on restructuring activities, including expenses and reserve balances Restructuring Reserves (In millions) | Metric | Amount | |:--------------------|:-------| | December 31, 2023 | $8 | | Expense (Q1 2024) | $2 | | Utilization (Q1 2024) | $(2) | | March 31, 2024 | $8 | | Expense (Q2 2024) | $1 | | Utilization (Q2 2024) | $(2) | | June 30, 2024 | $7 | - During the six months ended **June 30, 2024**, the Company recorded **$3 million** of net restructuring expense, primarily related to employee severance, compared to **$2 million** in the same period of **2023**[52](index=52&type=chunk) - Current restructuring actions include **$3 million** of net expense globally to improve efficiencies and rationalize the Company's footprint, with **$2 million** remaining accrued as of **June 30, 2024**[53](index=53&type=chunk) [NOTE 5. Goodwill and Other Intangible Assets](index=11&type=section&id=NOTE%205.%20Goodwill%20and%20Other%20Intangible%20Assets) This note details the Company's goodwill and other intangible assets, including their carrying values Intangible Assets, Net (In millions) | Category | June 30, 2024 Net Intangibles | December 31, 2023 Net Intangibles | |:-------------------------|:------------------------------|:----------------------------------| | **Definite-Lived:** | | | | Developed technology | $1 | $1 | | Customer related | $2 | $3 | | Capitalized software development | $26 | $28 | | Other | $12 | $14 | | Subtotal | $41 | $46 | | **Indefinite-Lived:** | | | | Goodwill | $43 | $44 | | **Total** | $84 | $90 | [NOTE 6. Other Assets](index=11&type=section&id=NOTE%206.%20Other%20Assets) This note provides a breakdown of various current and non-current assets not separately classified Other Current Assets (In millions) | Component | June 30, 2024 | December 31, 2023 | |:----------------------------------------|:--------------|:------------------| | Recoverable taxes | $50 | $51 | | Contractually reimbursable engineering costs | $30 | $33 | | Joint venture receivables | $18 | $19 | | Prepaid assets and deposits | $18 | $24 | | Joint venture loan receivable | $5 | $0 | | Contractual payments | $2 | $3 | | Other | $4 | $4 | | **Total** | $127 | $134 | Other Non-Current Assets (In millions) | Component | June 30, 2024 | December 31, 2023 | |:----------------------------------------|:--------------|:------------------| | Contractual payments | $25 | $22 | | Contractually reimbursable engineering costs | $18 | $21 | | Recoverable taxes | $9 | $10 | | Derivative financial instruments | $9 | $1 | | Other | $22 | $21 | | **Total** | $83 | $75 | - The Company expects to receive cash reimbursement payments of **$19 million** during the remainder of **2024**, **$19 million** in **2025**, **$8 million** in **2026**, **$1 million** in **2027**, and **$1 million** in **2028** and beyond for contractually reimbursable engineering costs[29](index=29&type=chunk) [NOTE 7. Other Liabilities](index=12&type=section&id=NOTE%207.%20Other%20Liabilities) This note details various current and non-current liabilities not separately classified Other Current Liabilities (In millions) | Component | June 30, 2024 | December 31, 2023 | |:----------------------------------------|:--------------|:------------------| | Deferred income | $49 | $57 | | Product warranty and recall accruals | $47 | $48 | | Non-income taxes payable | $29 | $25 | | Income taxes payable | $27 | $25 | | Joint venture payable | $18 | $25 | | Royalty reserves | $16 | $16 | | Restructuring reserves | $4 | $5 | | Other | $38 | $32 | | **Total** | $228 | $233 | Other Non-Current Liabilities (In millions) | Component | June 30, 2024 | December 31, 2023 | |:----------------------------------------|:--------------|:------------------| | Product warranty and recall accruals | $23 | $23 | | Deferred income | $12 | $12 | | Income tax reserves | $12 | $12 | | Derivative financial instruments | $9 | $9 | | Restructuring reserves | $3 | $3 | | Other | $26 | $26 | | **Total** | $85 | $85 | [NOTE 8. Debt](index=12&type=section&id=NOTE%208.%20Debt) This note outlines the Company's short-term and long-term debt obligations and credit facilities Company's Debt (In millions) | Category | June 30, 2024 | December 31, 2023 | |:----------------------|:--------------|:------------------| | **Short-Term Debt:** | | | | Current Portion of long-term debt | $18 | $18 | | **Long-Term Debt:** | | | | Term debt facility, net | $309 | $318 | - The Company has a **$400 million** Revolving Credit Facility with no outstanding borrowings as of **June 30, 2024**, and **$147 million** capacity under short-term credit facilities for its subsidiaries[195](index=195&type=chunk)[62](index=62&type=chunk)[33](index=33&type=chunk) - The Credit Agreement requires compliance with a total net leverage ratio no greater than **3.50:1.00** and includes a sustainability-linked pricing provision for a **5 basis point** decrease to the applicable margin based on GHG emissions reduction[34](index=34&type=chunk)[82](index=82&type=chunk) [NOTE 9. Employee Benefit Plans](index=14&type=section&id=NOTE%209.%20Employee%20Benefit%20Plans) This note provides details on the Company's defined benefit pension plans and related costs Net Pension Benefit (Cost) (In millions) | Metric | Six Months Ended June 30, 2024 (U.S. Plans) | Six Months Ended June 30, 2023 (U.S. Plans) | Six Months Ended June 30, 2024 (Non-U.S. Plans) | Six Months Ended June 30, 2023 (Non-U.S. Plans) | |:----------------------------------------|:--------------------------------------------|:--------------------------------------------|:------------------------------------------------|:------------------------------------------------| | Service cost | $0 | $0 | $(1) | $(1) | | Total pension financing benefits | $6 | $5 | $0 | $0 | | Net pension benefit (cost) | $6 | $5 | $(1) | $(1) | - The Company estimates total cash contributions to its U.S. and non-U.S. defined benefit pension plans during **2024** will be **$9 million** and **$7 million**, respectively[85](index=85&type=chunk) [NOTE 10. Income Taxes](index=15&type=section&id=NOTE%2010.%20Income%20Taxes) This note explains the provision for income taxes, effective tax rates, and related tax positions - The provision for income taxes for the six months ended **June 30, 2024**, was **$44 million**, an increase of **$17 million** compared to **$27 million** in the same period of **2023**, primarily due to increased net income and changes in the mix of earnings[38](index=38&type=chunk)[171](index=171&type=chunk) - Pretax losses in jurisdictions with valuation allowances totaled **$18 million** for the six months ended **June 30, 2024**, contributing to an increase in the effective tax rate[68](index=68&type=chunk) - The estimated annual effect of the **OECD Pillar Two initiative** (**15% global minimum tax**) on the Company's effective tax rate is not material[87](index=87&type=chunk) [NOTE 11. Stockholders' Equity and Non-controlling Interests](index=16&type=section&id=NOTE%2011.%20Stockholders%27%20Equity%20and%20Non-controlling%20Interests) This note details changes in stockholders' equity, non-controlling interests, and share repurchase programs Non-Controlling Interests (In millions) | Entity | June 30, 2024 | December 31, 2023 | |:----------------------------------------|:--------------|:------------------| | Shanghai Visteon Automotive Electronics, Co., Ltd. | $51 | $51 | | Yanfeng Visteon Automotive Electronics Co., Ltd. | $20 | $18 | | Changchun Visteon FAWAY Automotive Electronics, Co., Ltd. | $13 | $14 | | Other | $1 | $2 | | **Total** | $85 | $85 | Changes in Accumulated Other Comprehensive Income (Loss) (AOCI) (In millions) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:----------------------------------------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------| | Beginning balance | $(268) | $(197) | $(254) | $(213) | | Other comprehensive income (loss) before reclassification, net of tax | $(21) | $(19) | $(38) | $(4) | | Amounts reclassified from AOCI | $3 | $3 | $6 | $4 | | Ending balance | $(286) | $(213) | $(286) | $(213) | - The Company's board authorized a **$300 million** share repurchase program through **December 31, 2026**. As of **June 30, 2024**, **953,840 shares** have been repurchased at an average price of **$132.01**, with no purchases made during the three months ended **June 30, 2024**[73](index=73&type=chunk)[213](index=213&type=chunk)[222](index=222&type=chunk) [NOTE 12. Earnings Per Share](index=18&type=section&id=NOTE%2012.%20Earnings%20Per%20Share) This note presents the calculation of basic and diluted earnings per share for the Company Basic and Diluted Earnings Per Share Data (In millions, except per share amounts) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:----------------------------------------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------| | Net income (loss) attributable to Visteon | $71 | $20 | $113 | $54 | | Average common stock outstanding - basic | 27.6 | 28.3 | 27.6 | 28.3 | | Diluted shares | 27.9 | 28.7 | 27.9 | 28.7 | | Basic earnings (loss) per share | $2.57 | $0.71 | $4.09 | $1.91 | | Diluted earnings (loss) per share | $2.54 | $0.70 | $4.05 | $1.88 | [NOTE 13. Fair Value Measurements and Financial Instruments](index=18&type=section&id=NOTE%2013.%20Fair%20Value%20Measurements%20and%20Financial%20Instruments) This note describes the fair value of financial instruments and the Company's hedging activities - The fair value of the Company's debt was **$327 million** as of **June 30, 2024**, classified as **Level 2** in the fair value hierarchy[110](index=110&type=chunk) - The Company uses cross-currency swaps (**$200 million** notional) as net investment hedges and interest rate swaps (**$250 million** notional) as cash flow hedges to manage market risks[248](index=248&type=chunk)[249](index=249&type=chunk) - A gain of approximately **$4 million** from net investment hedges and a loss of approximately **$7 million** from interest rate swaps are expected to be reclassified out of accumulated other comprehensive income into earnings within the next **12 months**[248](index=248&type=chunk)[249](index=249&type=chunk) [NOTE 14. Commitments and Contingencies](index=20&type=section&id=NOTE%2014.%20Commitments%20and%20Contingencies) This note outlines the Company's various commitments, product warranty, recall claims, and legal contingencies Product Warranty and Recall Claims Liability (In millions) | Metric | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:--------------------|:-------------------------------|:-------------------------------| | Beginning balance | $51 | $51 | | Provisions | $25 | $25 | | Changes in estimates | $(2) | $0 | | Currency/other | $(2) | $0 | | Settlements | $(10) | $(7) | | Ending balance | $69 | $69 | - The Company accrued **$7 million** for claims aggregating **$47 million** in Brazil as of **June 30, 2024**, related to highly complex labor, tax, and customs laws[140](index=140&type=chunk) - Visteon paid **$12 million** to the Township of Van Buren to settle litigation, with the second equal installment paid on **July 1, 2024**[116](index=116&type=chunk) [NOTE 15. Revenue Recognition and Geographical Information](index=22&type=section&id=NOTE%2015.%20Revenue%20Recognition%20and%20Geographical%20Information) This note provides a breakdown of net sales by geographical markets and product lines Net Sales by Geographical Markets (In millions) | Geographical Markets | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---------------------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------| | Americas | $364 | $292 | $660 | $568 | | Europe | $328 | $330 | $641 | $676 | | China Domestic | $119 | $152 | $233 | $280 | | China Export | $69 | $88 | $139 | $171 | | Other Asia-Pacific | $168 | $161 | $341 | $338 | | Eliminations | $(34) | $(40) | $(67) | $(83) | | **Total** | $1,014 | $983 | $1,947 | $1,950 | Net Sales by Product Lines (In millions) | Product Lines | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:-----------------------------------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------| | Instrument clusters | $448 | $477 | $888 | $951 | | Cockpit domain controller | $145 | $138 | $286 | $251 | | Body and electrification electronics | $152 | $72 | $261 | $143 | | Infotainment | $119 | $126 | $237 | $261 | | Information displays | $104 | $90 | $185 | $187 | | Other | $46 | $80 | $90 | $157 | | **Total** | $1,014 | $983 | $1,947 | $1,950 | [Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202%20-%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Visteon's financial condition, results of operations, and cash flows, highlighting strategic priorities, market conditions, detailed financial performance for the three and six months ended **June 30, 2024**, liquidity, and forward-looking statements [Executive Summary](index=23&type=section&id=Executive%20Summary) This summary introduces Visteon's business, strategic focus, and market positioning in the automotive industry - Visteon is a global automotive technology company focused on creating enjoyable, connected, and safe driving experiences through scalable hardware and software solutions[146](index=146&type=chunk) - The automotive mobility market is expected to grow faster than underlying vehicle production volumes, driven by the shift towards digital, electric, and autonomous vehicles[146](index=146&type=chunk) [Strategic Priorities](index=23&type=section&id=Strategic%20Priorities) This section outlines the Company's key objectives for long-term growth, technology innovation, and capital allocation - Long-Term Growth: The Company aims for long-term growth by demonstrating product quality, technical and development capability, new product innovation, and overall customer service[124](index=124&type=chunk) - Technology Innovation: Visteon is a global leader in cockpit electronics, positioned to provide solutions for the industry's transition to fully digital, connected, automated, learning, and voice-enabled cockpits, including wireless battery management systems and integrated ADAS safety technology[147](index=147&type=chunk) - Balanced Capital Allocation: The Company maintains a strong balance sheet to support high-returning organic initiatives, pursue attractive inorganic opportunities, and return capital to shareholders, including a **$300 million** share repurchase program announced in **March 2023**[148](index=148&type=chunk) [Global Automotive Market Conditions and Production Levels](index=24&type=section&id=Global%20Automotive%20Market%20Conditions%20and%20Production%20Levels) This section discusses the current state and outlook of the global automotive market, including production volumes and challenges - The automotive industry has experienced turbulence from the **COVID-19 pandemic**, worldwide semiconductor and other supply shortages, a **UAW strike**, and increased geopolitical challenges[152](index=152&type=chunk) - Industry production volumes are expected to decline by approximately **1 million** units to **90 million** units in **2024**, which is below recent industry production levels that peaked in **2017**[152](index=152&type=chunk) - Ongoing uncertainties include vehicle affordability, economic uncertainty, potential geopolitical challenges, and customer market share changes[152](index=152&type=chunk) [Financial Results](index=24&type=section&id=Financial%20Results) This section provides an overview of Visteon's financial performance, including sales breakdown by product and region - For the three months ended **June 30, 2024**, net sales breakdown by product was: Instrument Cluster (**44%**), Cockpit Domain Controller (**15%**), Body & Electrification Electronics (**15%**), Infotainment (**12%**), Information Display (**12%**), and Other (**5%**)[150](index=150&type=chunk) - For the three months ended **June 30, 2024**, net sales breakdown by region was: Americas (**35%**), Europe (**31%**), Other Asia-Pacific (**16%**), China Domestic (**11%**), and China Export (**7%**)[127](index=127&type=chunk) [Results of Operations - Three Months Ended June 30, 2024 and 2023](index=25&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030%2C%202024%20and%202023) This section analyzes Visteon's financial performance for the three-month periods ended **June 30, 2024** and **2023** Consolidated Results of Operations (Three Months Ended June 30, In millions) | Metric | 2024 | 2023 | Change | |:------------------------------------------------|:-------|:-------|:-------| | Net sales | $1,014 | $983 | $31 | | Cost of sales | $(867) | $(879) | $12 | | Gross margin | $147 | $104 | $43 | | Selling, general and administrative expenses | $(49) | $(52) | $3 | | Restructuring, net | $(1) | $(1) | $0 | | Interest, net | $0 | $(3) | $3 | | Equity in net income of non-consolidated affiliates | $0 | $(2) | $2 | | Other income (expense), net | $3 | $(10) | $13 | | Provision for income taxes | $(25) | $(13) | $(12) | | Net income (loss) | $75 | $23 | $52 | | Net income (loss) attributable to Visteon Corporation | $71 | $20 | $51 | | Adjusted EBITDA | $136 | $90 | $46 | [Net Sales, Cost of Sales and Gross Margin](index=25&type=section&id=Net%20Sales%2C%20Cost%20of%20Sales%20and%20Gross%20Margin_Q2) This section analyzes the drivers of changes in net sales, cost of sales, and gross margin for the quarter - Net sales increased by **$31 million**, driven by **$102 million** from volumes and net new business due to market outperformance and recent product launches, partially offset by **$33 million** decrease from customer pricing and **$14 million** decrease from currency[131](index=131&type=chunk) - Cost of sales decreased by **$12 million**, primarily due to **$71 million** in favorable cost performance, design changes, and the non-recurrence of a **$15 million** prior year product recall charge, partially offset by **$81 million** increase from volume and new business[154](index=154&type=chunk) [Selling, General and Administrative Expenses](index=26&type=section&id=Selling%2C%20General%20and%20Administrative%20Expenses_Q2) This section details the changes in selling, general, and administrative expenses for the quarter - Selling, general, and administrative expenses decreased by **$3 million** to **$49 million**, primarily due to reduced bad debt expense[156](index=156&type=chunk) [Restructuring](index=26&type=section&id=Restructuring_Q2) This section discusses restructuring expenses incurred during the three-month period - Restructuring expense remained consistent at **$1 million**, primarily related to employee severance[157](index=157&type=chunk) [Interest, Net](index=26&type=section&id=Interest%2C%20Net_Q2) This section explains the changes in net interest income or expense for the quarter - Interest, net, improved from an expense of **$3 million** in **2023** to zero in **2024**, primarily due to higher interest income on cash balances[182](index=182&type=chunk) [Equity in Net Income of Non-Consolidated Affiliates](index=26&type=section&id=Equity%20in%20Net%20Income%20of%20Non-Consolidated%20Affiliates_Q2) This section details the Company's share of income or loss from non-consolidated affiliates for the quarter - Equity in net income of non-consolidated affiliates improved from a **$2 million** loss in **2023** to zero in **2024**, primarily due to operational improvements at an affiliate[134](index=134&type=chunk) [Other Income (Expense), Net](index=26&type=section&id=Other%20Income%20%28Expense%29%2C%20Net_Q2) This section explains other non-operating income and expenses for the three-month period - Other income, net, was **$3 million** in **2024**, a significant improvement from a **$10 million** expense in **2023**, primarily due to net pension financing benefits and the non-recurrence of the **2023** Van Buren litigation settlement[158](index=158&type=chunk)[135](index=135&type=chunk) [Income Taxes](index=26&type=section&id=Income%20Taxes_Q2) This section analyzes the provision for income taxes and its drivers for the quarter - The provision for income taxes increased by **$12 million** to **$25 million**, primarily due to the overall increase in net income and changes in the mix of earnings, partially offset by a **$3 million** decrease related to uncertain tax positions[159](index=159&type=chunk) [Adjusted EBITDA](index=26&type=section&id=Adjusted%20EBITDA_Q2) This section details the components contributing to the change in **Adjusted EBITDA** for the quarter - **Adjusted EBITDA** increased by **$46 million** to **$136 million**, driven by **$21 million** from volume and new business, **$12 million** from improved net engineering costs, and **$16 million** from warranty (due to the non-recurrence of a **$15 million** prior year product recall charge)[161](index=161&type=chunk) [Results of Operations - Six Months Ended June 30, 2024 and 2023](index=29&type=section&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20June%2030%2C%202024%20and%202023) This section analyzes Visteon's financial performance for the six-month periods ended **June 30, 2024** and **2023** Consolidated Results of Operations (Six Months Ended June 30, In millions) | Metric | 2024 | 2023 | Change | |:------------------------------------------------|:-------|:-------|:-------| | Net sales | $1,947 | $1,950 | $(3) | | Cost of sales | $(1,681) | $(1,736) | $55 | | Gross margin | $266 | $214 | $52 | | Selling, general and administrative expenses | $(101) | $(104) | $3 | | Restructuring, net | $(3) | $(2) | $(1) | | Interest, net | $0 | $(6) | $6 | | Equity in net income of non-consolidated affiliates | $(4) | $(7) | $3 | | Other income (expense), net | $5 | $(7) | $12 | | Provision for income taxes | $(44) | $(27) | $(17) | | Net income (loss) | $119 | $61 | $58 | | Net income (loss) attributable to Visteon Corporation | $113 | $54 | $59 | | Adjusted EBITDA | $238 | $189 | $49 | [Net Sales, Cost of Sales and Gross Margin](index=29&type=section&id=Net%20Sales%2C%20Cost%20of%20Sales%20and%20Gross%20Margin_YTD) This section analyzes the drivers of changes in net sales, cost of sales, and gross margin for the six-month period - Net sales decreased by **$3 million**, with **$112 million** increase from volumes and net new business offset by **$72 million** decrease from customer pricing and **$19 million** decrease from currency[187](index=187&type=chunk) - Cost of sales decreased by **$55 million**, primarily due to **$123 million** in favorable cost performance, design changes, and the non-recurrence of a **$15 million** prior year product recall charge, partially offset by **$88 million** increase from volume and new business[164](index=164&type=chunk) [Selling, General and Administrative Expenses](index=30&type=section&id=Selling%2C%20General%20and%20Administrative%20Expenses_YTD) This section details the changes in selling, general, and administrative expenses for the six-month period - Selling, general, and administrative expenses decreased by **$3 million** to **$101 million**, primarily due to reduced bad debt expense[166](index=166&type=chunk) [Restructuring](index=30&type=section&id=Restructuring_YTD) This section discusses restructuring expenses incurred during the six-month period - Restructuring expense increased by **$1 million** to **$3 million**, primarily related to employee severance[167](index=167&type=chunk) [Interest, Net](index=30&type=section&id=Interest%2C%20Net_YTD) This section explains the changes in net interest income or expense for the six-month period - Interest, net, improved from an expense of **$6 million** in **2023** to zero in **2024**, primarily due to higher interest income on cash balances[168](index=168&type=chunk) [Equity in Net Income of Non-Consolidated Affiliates](index=30&type=section&id=Equity%20in%20Net%20Income%20of%20Non-Consolidated%20Affiliates_YTD) This section details the Company's share of income or loss from non-consolidated affiliates for the six-month period - Equity in net income of non-consolidated affiliates improved from a **$7 million** loss in **2023** to a **$4 million** loss in **2024**, primarily due to the non-recurrence of certain operational and non-operational charges in **2023** and operational improvements in **2024**[169](index=169&type=chunk) [Other Income (Expense), Net](index=30&type=section&id=Other%20Income%20%28Expense%29%2C%20Net_YTD) This section explains other non-operating income and expenses for the six-month period - Other income, net, was **$5 million** in **2024**, a significant improvement from a **$7 million** expense in **2023**, primarily due to net pension financing benefits and the non-recurrence of the **2023** Van Buren litigation settlement[170](index=170&type=chunk)[190](index=190&type=chunk) [Income Taxes](index=30&type=section&id=Income%20Taxes_YTD) This section analyzes the provision for income taxes and its drivers for the six-month period - The provision for income taxes increased by **$17 million** to **$44 million**, primarily due to the overall increase in net income and changes in the mix of earnings, partially offset by a **$3 million** decrease related to uncertain tax positions[171](index=171&type=chunk) [Adjusted EBITDA](index=30&type=section&id=Adjusted%20EBITDA_YTD) This section details the components contributing to the change in **Adjusted EBITDA** for the six-month period - **Adjusted EBITDA** increased by **$49 million** to **$238 million**, driven by **$24 million** from volume and new business, **$8 million** from improved net engineering costs, and **$15 million** from warranty (due to the non-recurrence of a **$15 million** prior year product recall charge)[174](index=174&type=chunk) [Liquidity](index=31&type=section&id=Liquidity) This section assesses Visteon's ability to meet its short-term and long-term financial obligations [Cash Balances](index=32&type=section&id=Cash%20Balances) This section provides details on the Company's cash and cash equivalents, including their location and repatriation considerations - As of **June 30, 2024**, the Company had total cash and cash equivalents of **$508 million**, including **$3 million** of restricted cash[176](index=176&type=chunk) - Cash balances totaling **$430 million** were located outside the United States, with approximately **$65 million** considered permanently reinvested. Repatriation of these funds would not incur U.S. federal taxes but may accrue foreign withholding taxes[176](index=176&type=chunk) [Other Items Affecting Liquidity](index=32&type=section&id=Other%20Items%20Affecting%20Liquidity) This section discusses various factors impacting the Company's liquidity, such as tax benefits and investment commitments - The Company expects a cash outlay of **$14 million** related to unrecognized tax benefits, including interest and penalties[178](index=178&type=chunk) - Estimated total cash contributions to defined benefit plans for **2024** are **$9 million** for U.S. plans and **$7 million** for non-U.S. plans[177](index=177&type=chunk) - As of **June 30, 2024**, the Company has contributed **$12 million** towards a **$15 million** investment commitment in two venture capital funds focused on the automotive sector[197](index=197&type=chunk) [Cash Flows](index=33&type=section&id=Cash%20Flows) This section analyzes the Company's cash flows from operating, investing, and financing activities - Operating activities generated **$126 million** in cash inflows during the six months ended **June 30, 2024**, an **$84 million** improvement year-over-year, driven by higher **Adjusted EBITDA** and improved working capital[199](index=199&type=chunk) - Investing activities used **$72 million** in cash, an increase of **$23 million** in usage year-over-year, primarily due to increased capital expenditures of **$17 million**[223](index=223&type=chunk) - Financing activities used **$36 million** in cash, a **$21 million** decrease in usage year-over-year, primarily due to lower dividends paid to non-controlling interests and reduced common stock repurchases[179](index=179&type=chunk) [Significant Accounting Policies and Critical Accounting Estimates](index=33&type=section&id=Significant%20Accounting%20Policies%20and%20Critical%20Accounting%20Estimates) This section refers to detailed notes on the Company's key accounting policies and estimates - Refer to Note **1**, 'Summary of Significant Accounting Policies,' and Note **13**, 'Fair Value Measurements and Financial Instruments,' for detailed information[201](index=201&type=chunk)[180](index=180&type=chunk) [Recent Accounting Pronouncements](index=33&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to detailed notes on recently issued accounting standards and their potential impact - Refer to Note **1**, 'Summary of Significant Accounting Policies,' for information on recent accounting pronouncements[225](index=225&type=chunk) [Forward-Looking Statements](index=33&type=section&id=Forward-Looking%20Statements) This section highlights the inherent uncertainties and risks associated with the Company's future projections - The report contains 'Forward-Looking Statements' that reflect current expectations or forecasts of future events, which are subject to risks and uncertainties[181](index=181&type=chunk) - Key risk factors include significant or prolonged shortages of critical components (e.g., semiconductors), impacts of geopolitical conflicts, failure of joint venture partners, changes in the competitive environment, and the Company's ability to satisfy capital and liquidity requirements[203](index=203&type=chunk) - Other risks include changes in customer operations or vehicle production, increases in commodity costs, ability to generate cost savings, restrictions in labor contracts, legal proceedings, changes in economic conditions, IT system disruptions, and intellectual property rights[203](index=203&type=chunk)[204](index=204&type=chunk) [Item 3 - Quantitative and Qualitative Disclosures about Market Risk](index=36&type=section&id=Item%203%20-%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section outlines Visteon's exposure to primary market risks, including foreign currency exchange rates, interest rates, and commodity prices, and describes the strategies employed to manage these risks through operating actions and derivative financial instruments - The Company's primary market risks are changes in currency exchange rates, interest rates, and certain commodity prices, managed through operating actions and derivative instruments for hedging purposes[228](index=228&type=chunk) [Foreign Currency Risk](index=36&type=section&id=Foreign%20Currency%20Risk) This section details the Company's exposure to foreign currency fluctuations and its hedging strategies - The Company's operating results are impacted by transactional exposure from foreign currency denominated sales, supplier payments, debt, and intercompany arrangements, as well as translation exposure of foreign operating income into U.S. dollars[229](index=229&type=chunk)[206](index=206&type=chunk) - Derivative financial instruments, such as forward and option contracts, may be utilized to manage foreign currency exchange rate risks for transactional exposures, but not for translation exposure[229](index=229&type=chunk)[206](index=206&type=chunk) - A hypothetical **10%** favorable or adverse change in quoted currency exchange rates would result in a **$20 million** pre-tax gain or loss for currency derivative financial instruments as of **June 30, 2024**[230](index=230&type=chunk) [Interest Rate Risk](index=36&type=section&id=Interest%20Rate%20Risk) This section refers to disclosures on the Company's exposure to interest rate changes and related financial instruments - Refer to Note **13**, 'Fair Value Measurements and Financial Instruments,' for additional information on interest rate risk[231](index=231&type=chunk) [Commodity Risk](index=36&type=section&id=Commodity%20Risk) This section describes how the Company manages risks associated with changes in commodity prices for production materials - The Company manages exposures to market risk from changes in production material prices primarily through negotiations with suppliers and customers[232](index=232&type=chunk) - The Company may utilize derivatives in the future to manage select commodity risks if acceptable hedging instruments are identified[232](index=232&type=chunk) [Item 4 - Controls and Procedures](index=36&type=section&id=Item%204%20-%20Controls%20and%20Procedures) This section confirms the effectiveness of Visteon's disclosure controls and procedures and internal control over financial reporting as of **June 30, 2024**, with no material changes reported during the quarter [Disclosure Controls and Procedures](index=36&type=section&id=Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of the Company's disclosure controls and procedures as evaluated by management - An evaluation of the effectiveness of the Company's disclosure controls and procedures was performed under the supervision of management, including the CEO and CFO, who concluded they were effective as of **June 30, 2024**[208](index=208&type=chunk) [Internal Control over Financial Reporting](index=37&type=section&id=Internal%20Control%20over%20Financial%20Reporting) This section reports on any material changes to the Company's internal control over financial reporting during the quarter - There were no changes in the Company's internal control over financial reporting during the three months ended **June 30, 2024**, that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting[209](index=209&type=chunk) Part II - Other Information This section provides additional information not covered in the financial statements, including legal, risk, and equity matters [Item 1 - Legal Proceedings](index=38&type=section&id=Item%201%20-%20Legal%20Proceedings) This section refers to Note **14** of the condensed consolidated financial statements for detailed information regarding legal proceedings - Refer to Note **14**, 'Commitments and Contingencies,' to the condensed consolidated financial statements for information regarding legal proceedings[211](index=211&type=chunk) [Item 1A - Risk Factors](index=38&type=section&id=Item%201A%20-%20Risk%20Factors) This section directs readers to the Company's Annual Report on Form **10**-K for a comprehensive discussion of risk factors and to the 'Forward-Looking Statements' section within this Quarterly Report for additional context - For information regarding factors that could affect the Company's results of operations, financial condition, and liquidity, refer to the risk factors discussed in Part I, 'Item **1A**. Risk Factors' in the Company's Annual Report on Form **10**-K for the year ended **December 31, 2023**[212](index=212&type=chunk) - Also, refer to 'Forward-Looking Statements' included in Part I, Item **2** of this Quarterly Report on Form **10**-Q[212](index=212&type=chunk) [Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202%20-%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section states that no purchases of the Company's common stock were made by or on behalf of the Company during the **second quarter of 2024** - There were no purchases made by or on behalf of the Company, or an affiliated purchaser, of shares of the Company's common stock during the **second quarter of 2024**[213](index=213&type=chunk) [Item 5 - Other Information](index=38&type=section&id=Item%205%20-%20Other%20Information) This section reports that no **Rule 10b5-1 plans** trading arrangements were adopted, modified, or terminated by the Company's directors and officers during the quarter ended **June 30, 2024** - During the quarter ended **June 30, 2024**, no **Rule 10b5-1 plans** or other arrangements for the purchase or sale of the Company's shares were adopted, modified, or terminated by its directors and officers[214](index=214&type=chunk) [Item 6 - Exhibits](index=38&type=section&id=Item%206%20-%20Exhibits) This section indicates that the exhibits listed in the 'Exhibit Index' are filed with this report or incorporated by reference - The exhibits listed on the 'Exhibit Index' on Page **38** are filed with this report or incorporated by reference[215](index=215&type=chunk) [Exhibit Index](index=39&type=section&id=Exhibit%20Index) This index provides a list of all exhibits accompanying the Form **10**-Q, including certifications from the CEO and CFO, and various XBRL taxonomy extension documents - The Exhibit Index includes Rule **13a**-**14a** Certifications of the Chief Executive Officer and Senior Vice President, Chief Financial Officer, dated **July 25, 2024**[239](index=239&type=chunk) - It also lists Section **1350** Certifications from the CEO and CFO, and various XBRL Taxonomy Extension Documents (INS, LAB, DEF, SCH, PRE, CAL)[239](index=239&type=chunk)[236](index=236&type=chunk)[217](index=217&type=chunk) [Signatures](index=39&type=section&id=Signatures) This section contains the signature of the authorized representative of Visteon Corporation, certifying the filing of the report - The report is signed on behalf of Visteon Corporation by Colleen E. Myers, Vice President and Chief Accounting Officer, on **July 25, 2024**[218](index=218&type=chunk)[241](index=241&type=chunk)

The company won $3.1 billion of new business in the first half of the year, including nearly $1.8 billion of display wins. Visteon continues to successfully diversify its customer base, with over $1.8 billion of wins with Rest of Asia OEMs in the first half. Second quarter wins included several significant display wins, including a large, curved OLED display for a luxury vehicle platform for a Japanese OEM and a dual display for a SUV for another Japanese OEM. Visteon also won an audio infotainment and dual ...

Visteon Corporation (NASDAQ:VC) is a June 2000 spin-off from Ford (F). This U.S. automaker remains its largest customer, accounting for 22% of 2023 sales. However, the company now serves the whole auto/truck industry, mostly manufacturing the display video/panels on your dashboard and various instruments/devices/inventions for measuring and controlling onboard electronics. It is now becoming an important supplier of displays and electronics for accelerating growth at a host of electric vehicle OEMs, with ne ...

Visteon Corporation (NASDAQ:VC) Q1 2024 Earnings Call Transcript April 25, 2024 9:00 AM ET Company Participants Ryan Wentling - VP, IR & Treasurer Sachin Lawande - President & CEO Jerome Rouquet - SVP & CFO Conference Call Participants Dan Levy - Barclays Joe Spak - UBS Luke Junk - Baird James Picariello - BNP Itay Michaeli - Citi Research Shreyas Patil - Wolfe Research Mark Delaney - Goldman Sachs Ryan Wentling Good morning. I'm Ryan Wentling, Vice President of Investor Relations and Treasurer. Welcome to ...

(Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 ________________ FORM 10-Q Commission file number 001-15827 VISTEON CORPORATION (Exact name of registrant as specified in its charter) | Sta ...

Exhibit 99.1 NEWS RELEASE Visteon Announces First Quarter 2024 Financial Results VAN BUREN TOWNSHIP, Mich., April 25, 2024 — Visteon Corporation (NASDAQ: VC) today reported first quarter financial results. Highlights include: Visteon reported net sales of $933 million compared to $967 million in the first quarter of the prior year. The decline in net sales was primarily due to lower recoveries resulting from improved semiconductor supply in the first quarter of 2024 and 1% lower customer vehicle production. ...

Visteon Corporation (NASDAQ:VC) Q4 2023 Earnings Conference Call February 20, 2024 9:00 AM ET Company Participants Ryan Wentling - VP, IR & Treasurer Sachin Lawande - President & CEO Jerome Rouquet - SVP & CFO Conference Call Participants Joe Spak - UBS Justin Barell - Citi Dan Levy - Barclays Luke Junk - Baird John Babcock - Bank of America Colin Langan - Wells Fargo Mark Delaney - Goldman Sachs Ryan Wentling Good morning. I'm Ryan Wentling, Vice President of Investor Relations and Treasurer. Welcome to ou ...

Visteon Q4 and Full-Year 2023 Earnings 2023 in Review | --- | --- | --- | |-----------|-----------------|--------------| | | | | | Net Sales | Adjusted EBITDA | Adjusted FCF | 2 (1) Excludes Y/Y impact of supply chain recoveries. Added ~$1 billion in base sales over two years (Dollars in millions) | --- | --- | |-------|--------------------------------------------------------------------------------------------------------------------------| | | 2023 Achievements | | | Gaining Share in Digital Clusters Exte ...

Financial Performance - Visteon reported net sales of $3,954 million for the year ended December 31, 2023, representing a year-over-year increase of 5% and a base sales growth of 12% when excluding pricing impacts from supply chain recoveries [130]. - Adjusted EBITDA for 2023 was $434 million, or 11% of sales, reflecting operational leverage from higher volumes and cost discipline, an increase of $86 million compared to 2022 [130]. - Visteon's gross margin improved to $487 million in 2023, up from $368 million in 2022, driven by favorable cost performance and design changes [133]. - Net income attributable to Visteon Corporation for 2023 was $486 million, a significant increase of $362 million compared to $124 million in 2022 [133]. - Adjusted EBITDA for the year ended December 31, 2023, was $434 million, an increase of $86 million from $348 million in 2022, driven by favorable volumes and mix [147]. Cash Flow and Investments - The company generated $267 million in cash from operating activities in 2023, up from $167 million in 2022, reflecting a $100 million increase [160]. - Net cash used in investing activities increased to $123 million in 2023 from $68 million in 2022, primarily due to a $44 million rise in capital expenditures [162]. - Net cash used in financing activities rose to $156 million in 2023 compared to $9 million in 2022, mainly due to $106 million in common stock repurchases and $29 million in dividends paid [163]. - The company has committed to invest $15 million in two entities focused on the automotive sector, having contributed $12 million towards this commitment as of December 31, 2023 [154]. Balance Sheet and Shareholder Returns - The company maintained a strong balance sheet and announced a $300 million share repurchase program, having repurchased $106 million of common stock in 2023 [127]. - As of December 31, 2023, the company had total cash and equivalents of $518 million, with $383 million located outside the U.S. [151]. - The corporate credit rating as of December 31, 2023, is BB- by Standard & Poor's, influencing access to additional capital [150]. Tax and Pension Obligations - The company recorded a benefit from income taxes of $248 million in 2023, an increase of $293 million compared to the previous year, largely due to a non-cash tax benefit related to deferred tax assets [143]. - The company expects to make contributions of $9 million to its U.S. defined benefit pension plans and $7 million to its non-U.S. plans during 2024 [152]. - The company has approximately $142 million in unfunded net pension liabilities as of December 31, 2023, with $113 million attributable to U.S. plans [174]. Market Conditions and Risks - The global automotive market is expected to grow faster than vehicle production volumes as the industry shifts towards digital, electric, and autonomous vehicles [126]. - Visteon faced challenges from semiconductor shortages but continued proactive initiatives to increase product availability and minimize cost impacts [131]. - The company is exposed to significant risks from supply chain disruptions due to the ongoing conflict between Russia and Ukraine [187]. - The company faces potential impacts from a shortage of critical components, including semiconductors, from suppliers [187]. Currency and Commodity Risk Management - The hypothetical pretax gain or loss from a 10% favorable or adverse change in quoted currency exchange rates is estimated to be approximately $21 million for foreign currency derivative financial instruments as of December 31, 2023 [192]. - The company manages market risks through fixed price contracts and derivative instruments strictly for hedging purposes, not for speculative trading [189]. - The company does not enter into foreign exchange contracts to mitigate translation exposure from foreign operating income into U.S. dollars [191]. - The company may utilize derivatives in the future to manage select commodity risks if acceptable hedging instruments are identified [194]. Operational Challenges - Selling, general, and administrative expenses increased to $207 million in 2023, representing 5.2% of net sales, primarily due to higher personnel costs [137]. - The company recorded a non-cash impairment charge of $5 million in 2022 due to the closure of its Russian facility [169]. - A 25 basis point decrease in the discount rate is expected to have a pretax pension expense impact of less than -$1 million for both U.S. and Non-U.S. plans in 2024 [179]. - A 25 basis point increase in the discount rate is projected to result in a pretax pension expense increase of +$16 million for the U.S. plan in 2023 [179]. - The company anticipates a pretax pension expense increase of +$1.6 million with a 25 basis point decrease in expected return on assets [179]. - The company regularly audits its tax provisions and accrues for contingencies related to income tax risks [183].