Visteon(VC)2025-02-18 12:09Financial Performance - Visteon reported net sales of $3,866 million for the year ended December 31, 2024, a decrease of 2% compared to $3,954 million in 2023[125]. - Adjusted EBITDA for 2024 was $474 million, representing a 9% increase from $434 million in 2023, driven by strong commercial and cost discipline[125]. - Net income attributable to Visteon Corporation was $274 million in 2024, down from $486 million in 2023, primarily due to a lower deferred tax valuation allowance release[127]. - Adjusted EBITDA for the year ended December 31, 2024, was $474 million, an increase of $40 million compared to 2023[140]. - Net income attributable to Visteon Corporation for 2024 was $274 million, a decrease of $212 million from $486 million in 2023[139]. - Cash generated from operating activities increased to $427 million in 2024, up $160 million from $267 million in 2023[154]. Business Operations - The company launched 95 new products in 2024, contributing to a total of $6.1 billion in new business wins across various product categories[125]. - The gross margin improved to $531 million in 2024, up from $487 million in 2023, reflecting better cost performance and design changes[127]. - Visteon incurred $32 million in restructuring expenses in 2024, up from $5 million in 2023, as part of a global restructuring plan[132]. - Industry vehicle volumes were approximately 89 million units in 2024, showing a modest decline compared to 2023, with expectations of a slight decline in 2025[124]. - The company spent a net cash outlay of $55 million on inorganic growth in 2024, acquiring an advanced design and R&D services firm and a software firm[122]. Shareholder Actions - The company repurchased $169 million of its common stock under a $300 million share repurchase program announced in March 2023[122]. - The company repurchased 647,755 shares at an average price of $97.97, totaling $63 million under the share repurchase program[150]. Cash and Investments - The company had total cash and equivalents of $626 million as of December 31, 2024, with $489 million located outside the U.S.[146]. - Net cash used in investing activities was $189 million in 2024, an increase of $66 million from $123 million in 2023, primarily due to business acquisitions[155]. - The company has committed to invest $20 million in multiple entities focused on the automotive sector, with $13 million already contributed[149]. Tax and Valuation - The company recorded a $313 million income tax benefit related to the partial release of its U.S. valuation allowance as of December 31, 2023[178]. - The company expects a $49 million income tax benefit in 2024, further reducing the U.S. valuation allowance[179]. - The company has been in a substantive three-year U.S. cumulative income position and reported U.S. income for 10 of the past 12 quarters[177]. Risk Management - The company anticipates ongoing risks related to vehicle affordability, economic uncertainty, and geopolitical challenges affecting future production levels[124]. - The company manages market risks through fixed price contracts and derivative instruments, strictly for hedging purposes[186]. - The company may utilize derivative financial instruments to manage foreign currency exchange rate risks, including forward and option contracts[187]. - The company continues to evaluate derivatives available in the marketplace to manage select commodity risks[191]. - The company faces uncertainties related to U.S. trade policies, supply chain disruptions, and changes in the competitive environment[184]. Pension and Discount Rates - The company expects to contribute approximately $12 million to its defined benefit pension plans in 2025[147]. - The weighted average discount rates for U.S. plans decreased from 5.40% in 2023 to 5.09% in 2024, while non-U.S. plans decreased from 5.33% to 5.06%[171]. - A 25 basis point decrease in the discount rate would result in a decrease of $13 million in the funded status of the U.S. plan for 2024[172]. Currency and Exchange Rates - The hypothetical pretax gain or loss from a 10% change in foreign currency exchange rates would be approximately $20 million for 2024[189].