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].

Visteon Corporation (NASDAQ:VC) Q3 2023 Earnings Conference Call October 26, 2023 9:00 AM ET Company Participants Ryan Wentling - Vice President of Investor Relations and Treasurer Sachin Lawande - President and Chief Executive Officer Jerome Rouquet - Senior Vice President and Chief Financial Officer Conference Call Participants Luke Junk - Baird Dan Levy - Barclays Joe Spak - UBS Mark Delaney - Goldman Sachs John Babcock - Bank of America Emmanuel Rosner - Deutsche Bank James Picariello - BNP Paribas Exan ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 ________________ FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) State of Delaware 38-3519512 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer One V ...

Visteon Q2 2023 Earnings August 3, 2023 Q2 2023 in Review Visteon | --- | --- | --- | --- | --- | |---------------------------------------------|---------------------------------|------------------------------------------------------------------|-------------------------------------|----------------------------------------------------| | Net Sales $983 Million 18% Y/Y Growth (1) | | Adjusted EBITDA $90 Million Includes $15 Million Recall Charge | | Adjusted FCF $32 Million $459 Million Total Cash | | CONTIN ...

Visteon Corporation (NASDAQ:VC) Q2 2023 Earnings Conference Call August 3, 2023 9:00 AM ET Company Participants Ryan Wentling - Vice President of Investor Relations and Treasurer Sachin Lawande - President and Chief Executive Officer Jerome Rouquet - Senior Vice President and Chief Financial Officer Conference Call Participants Gautam Narayan - RBC Capital Markets James Picariello - BNP Paribas Ronald Jewsikow - Guggenheim Securities Mark Delaney - Goldman Sachs Shreyas Patil - Wolfe Research Dan Levy - Bar ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number 001-15827 VISTEON CORPORATION (Exact name of registrant as specified in its charter) State of Delaware 38-3519512 ________________ FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ...

Visteon Corporation (NASDAQ:VC) Q1 2023 Earnings Conference Call April 27, 2023 9:00 AM ET Company Participants Ryan Wentling - Vice President, Investor Relations & Treasurer Sachin Lawande - President & Chief Executive Officer Jerome Rouquet - Senior Vice President & Chief Financial Officer Conference Call Participants Tom Narayan - RBC Mark Delaney - Goldman Sachs Dan Levy - Barclays James Picariello - BNP Paribas Luke Junk - Baird Emmanuel Rosner - Deutsche Bank Operator Ladies and gentlemen thank you fo ...

[Part I - Financial Information](index=3&type=section&id=Part%20I%20-%20Financial%20Information) This section details Visteon's unaudited Q1 2023 financial performance, including statements and notes, showing increased net sales and net income [Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201%20-%20Condensed%20Consolidated%20Financial%20Statements) This section presents Visteon's unaudited Q1 2023 financial statements, including income, balance, cash flow, and equity, with detailed notes [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's Q1 2023 and Q1 2022 comprehensive income, highlighting significant growth in net sales and net income | Financial Metric | Q1 2023 (In millions) | Q1 2022 (In millions) | Change | | :--- | :--- | :--- | :--- | | **Net sales** | $967 | $818 | +18.2% | | **Gross margin** | $110 | $76 | +44.7% | | **Income before income taxes** | $52 | $31 | +67.7% | | **Net income attributable to Visteon** | $34 | $22 | +54.5% | | **Diluted earnings per share** | $1.18 | $0.77 | +53.2% | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement presents Visteon's financial position as of March 31, 2023, and December 31, 2022, detailing assets, liabilities, and equity | Balance Sheet Item | March 31, 2023 (In millions) | December 31, 2022 (In millions) | | :--- | :--- | :--- | | **Total current assets** | $1,664 | $1,710 | | **Total assets** | $2,405 | $2,450 | | **Total current liabilities** | $964 | $1,035 | | **Total liabilities** | $1,598 | $1,676 | | **Total Visteon stockholders' equity** | $720 | $675 | | **Total equity** | $807 | $774 | - Cash and equivalents decreased from **$520 million** at the end of 2022 to **$484 million** as of March 31, 2023[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes Visteon's cash flows from operating, investing, and financing activities for Q1 2023 and Q1 2022 | Cash Flow Activity | Q1 2023 (In millions) | Q1 2022 (In millions) | | :--- | :--- | :--- | | **Net cash used by operating activities** | $(19) | $(21) | | **Net cash used by investing activities** | $(20) | $(21) | | **Net cash used by financing activities** | $(5) | $(4) | | **Net decrease in cash** | $(36) | $(50) | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations for the financial statements, covering segment operations, share repurchases, contingencies, and sales breakdowns - The company operates as a single reportable segment, Electronics, which provides vehicle cockpit electronics products like digital instrument clusters, domain controllers, displays, and infotainment systems[23](index=23&type=chunk) - On March 2, 2023, the Board of Directors authorized a new **$300 million** share repurchase program, effective through December 31, 2026, with no shares repurchased as of March 31, 2023[60](index=60&type=chunk) - The company faces several contingencies, including litigation with Van Buren Township over bond payments, a U.S. Treasury review of potential sanctions violations, and potential customer claims due to semiconductor supply shortages[79](index=79&type=chunk)[80](index=80&type=chunk)[83](index=83&type=chunk) | Net Sales by Geography | Q1 2023 (In millions) | Q1 2022 (In millions) | | :--- | :--- | :--- | | Europe | $346 | $283 | | Americas | $276 | $239 | | China Domestic | $128 | $142 | | China Export | $83 | $48 | | Other Asia-Pacific | $177 | $134 | | Net Sales by Product Line | Q1 2023 (In millions) | Q1 2022 (In millions) | | :--- | :--- | :--- | | Instrument clusters | $474 | $390 | | Infotainment | $134 | $110 | | Cockpit domain controller | $113 | $82 | | Information displays | $97 | $133 | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=24&type=section&id=Item%202%20-%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial results, noting an **18% increase in net sales to $967 million**, leading to **$110 million gross margin** and **$99 million Adjusted EBITDA** - The company's strategic priorities focus on Technology Innovation in the digital cockpit, achieving Long-Term Growth, and Enhancing Shareholder Returns while maintaining a strong balance sheet[94](index=94&type=chunk) | Metric | Q1 2023 (In millions) | Q1 2022 (In millions) | Change (In millions) | | :--- | :--- | :--- | :--- | | **Net Sales** | $967 | $818 | +$149 | | **Gross Margin** | $110 | $76 | +$34 | | **Net Income (attributable to Visteon)** | $34 | $22 | +$12 | | **Adjusted EBITDA** | $99 | $71 | +$28 | - The **$149 million** increase in net sales was primarily driven by **volume, mix, and net new business (+$180 million)** and **customer pricing (+$15 million)**, partially offset by **unfavorable currency (-$31 million)**[99](index=99&type=chunk)[100](index=100&type=chunk) - Adjusted EBITDA increased by **$28 million** year-over-year, mainly due to **favorable volumes and mix (+$43 million)** and **customer pricing (+$15 million)**, partially offset by **unfavorable currency (-$9 million)** and **higher net engineering costs (-$10 million)**[111](index=111&type=chunk) - As of March 31, 2023, the company had total liquidity of **$546 million**, comprising **$146 million** in available affiliate working capital lines and **$400 million** under its revolving credit facility[114](index=114&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203%20-%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company identifies primary market risks as foreign currency, interest rates, and commodity prices, using derivatives for hedging, mainly for the euro and Brazilian real - The company's primary market risks are **foreign currency exchange rates**, **interest rates**, and **commodity prices**[131](index=131&type=chunk) - Derivative instruments are used to mitigate market risks and not for speculative or trading purposes, with key hedged currencies including the **euro** and **Brazilian real**[131](index=131&type=chunk)[132](index=132&type=chunk) - A hypothetical **10% adverse or favorable change** in currency exchange rates would result in a pre-tax loss or gain of approximately **$21-22 million** in the fair value of currency derivative instruments as of March 31, 2023[134](index=134&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204%20-%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls were effective as of March 31, 2023, with no material changes to internal controls - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2023[139](index=139&type=chunk) - No material changes occurred in the company's internal control over financial reporting during Q1 2023[140](index=140&type=chunk) [Part II - Other Information](index=33&type=section&id=Part%20II%20-%20Other%20Information) This section provides supplementary information, referencing legal proceedings and risk factors, confirming no Q1 2023 unregistered equity sales or share repurchases, and listing exhibits [Legal Proceedings](index=33&type=section&id=Item%201%20-%20Legal%20Proceedings) This section incorporates by reference legal proceedings information detailed in Note 14 of the financial statements - For information on legal proceedings, refer to Note 14, "Commitments and Contingencies," in the financial statements[143](index=143&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A%20-%20Risk%20Factors) This section directs readers to the company's 2022 Annual Report on Form 10-K for a comprehensive discussion of risk factors - A detailed discussion of risk factors is available in the company's Annual Report on Form 10-K for the year ended December 31, 2022[144](index=144&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202%20-%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no purchases of its common stock by or on behalf of the company or affiliates during Q1 2023 - The company did not repurchase any of its common stock during the first quarter of 2023[145](index=145&type=chunk) [Exhibits](index=33&type=section&id=Item%206%20-%20Exhibits) This section states that the exhibits accompanying this Form 10-Q are listed in the Exhibit Index on page 34 - The exhibits filed with this report are listed on the "Exhibit Index" on Page 34[146](index=146&type=chunk)

Visteon Corporation (NASDAQ:VC) Q4 2022 Earnings Conference Call February 16, 2023 9:00 AM ET Company Participants Ryan Ghazaeri - Director, Capital Markets and Strategic Planning Sachin Lawande - President and CEO Jerome Rouquet - SVP and CFO Kristopher Doyle - IR Conference Call Participants Emmanuel Rosner - Deutsche Bank Luke Junk - Baird David Kelley - Jefferies James Picariello - BNP Paribas Colin Langan - Wells Fargo Itay Michaeli - Citi Ryan Ghazaeri Good morning. I'm Ryan Ghazaeri, Director of Capi ...