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 were up 7 percent to $88.17 during midday trading Thursday.
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.