Visteon Corporation Reports Mixed Q3 Results, Decline in Net Sales Amid Improving Gross Margin and Net Income

Visteon Corporation reported its financial results for the third quarter and the first nine months of 2024, revealing a decline in net sales compared to the previous year. For the three months ended September 30, 2024, net sales totaled $980 million, down from $1,014 million in the same period of 2023. For the nine months, net sales were $2,927 million, a decrease from $2,964 million in 2023. The decline in sales was attributed to various factors, including a $31 million decrease from customer pricing and an $11 million decrease from currency effects, despite a $20 million increase from volumes and new business.

Gross margin for the third quarter was $131 million, compared to $143 million in 2023, while for the nine months, gross margin increased to $397 million from $357 million. Net income for the third quarter was $40 million, down from $71 million in 2023, while net income for the nine months rose to $159 million from $132 million in the prior year. Basic earnings per share for the third quarter were $1.41, down from $2.35, but increased to $5.51 for the nine months, up from $4.26.

The company’s cash and equivalents as of September 30, 2024, stood at $550 million, an increase from $515 million at the end of 2023. Total current assets rose to $1,702 million from $1,616 million, and total assets increased to $2,893 million from $2,727 million. Visteon’s stockholders’ equity also improved, reaching $1,273 million compared to $1,123 million at the end of 2023.

Strategically, Visteon completed the acquisition of a German advanced design and R&D services company on August 29, 2024, for a net cash outlay of $48 million, aimed at enhancing its technology service offerings. The company also initiated a global restructuring program, incurring a net restructuring expense of $31 million for the nine months, primarily related to employee severance.

In terms of product performance, net sales for instrument clusters decreased to $442 million from $494 million, while body and electrification electronics saw an increase to $140 million from $83 million. The Americas region reported a sales increase to $367 million from $311 million, while Europe and China experienced declines.

Overall, Visteon’s financial performance reflects a mixed picture, with challenges in sales and profitability in the third quarter contrasted by improvements in net income and gross margin over the nine-month period.