- Solid 2016 financial performance – total Visteon
- Sales of $3,161 million ($816 million in fourth quarter)
- Net income of $75 million, including $49 million of restructuring expense, $24 million of other net expense and $40 million loss from discontinued operations ($2 million net income in fourth quarter)
- Net cash generated from operating activities of $120 million ($82 million in fourth quarter)
- Total cash and equivalents of $882 million; total debt of $382 million
- Record 2016 performance for Electronics Product Group
- Sales of $3,107 million ($803 million in fourth quarter)
- Adjusted EBITDA of $346 million ($98 million in fourth quarter)
- Adjusted free cash flow of $167 million ($79 million in fourth quarter)
- All-time-high order backlog of $16.5 billion
- Legacy business transactions largely completed
- Other operations sales total $54 million in 2016 – all legacy Climate operations exited by year-end 2016
- Discontinued operations sales total $45 million in 2016 – all legacy interiors operations sold by year-end 2016
- Earned record new business awards (lifetime revenue) of $5.4 billion in 2016 – $1.1 billion more than 2015
- Announced new $400 million share repurchase authorization
Visteon Corporation (NYSE: VC) today announced strong full-year 2016 results, reporting net income attributable to Visteon of $75 million, or $2.12 per diluted share, including $49 million of restructuring expense, $24 million of other net expense and $40 million of net loss associated with discontinued operations.
Full-year sales were $3,161 million, a decrease of $84 million compared with 2015, primarily attributable to the sale of an interiors European facility in 2015. Net cash provided from operating activities was $120 million for full year 2016.
In 2016, global vehicle manufacturers awarded Visteon new business of $5.4 billion in lifetime revenue. Fourth-quarter wins totaled $1.3 billion. The ongoing backlog, defined as cumulative remaining life-of-program booked sales, was approximately $16.5 billion as of Dec. 31, 2016, up from $14.9 billion in 2015, an increase of 11 percent.
"We finished the year very strong and delivered exceptional financial results in 2016, a year in which we transformed Visteon into a leading player in the cockpit electronics segment," said Visteon President and CEO Sachin Lawande. "We returned $2.2 billion in capital to investors during the year, while making significant progress on our strategic priorities, including winning $5.4 billion in new business – primarily in China and Western Europe – and executing a record 59 product launches."
Lawande added: "As the shift toward the all-digital cockpit gains momentum, we are very well-positioned to capitalize on opportunities as the only pure-play automotive cockpit electronics supplier. Our focus, strong balance sheet and broad product and technology portfolio place us in a formidable position to deliver industry-leading performance for our shareholders, customers and employees. Our $16.5 billion business backlog provides a solid foundation to execute our five-year plan and grow sales to $4.7 billion by 2021."
Fourth Quarter in Review
Sales for the fourth quarter of 2016 were $816 million, an increase of $7 million from $809 million for the same quarter a year earlier. Gross margin was $129 million, compared with $114 million for the same period in 2015. Selling, general and administrative (SG&A) expenses were $57 million for the fourth quarter of 2016, compared with $63 million a year earlier.
Net income attributable to Visteon was $2 million, or $0.06 per diluted share in 2016. This included $27 million of restructuring, $8 million of other expense and $25 million of loss from discontinued operations.
Sales totaled $803 million, an increase of $28 million from the fourth quarter of 2015. The year-over-year improvement was primarily related to increased production volumes and new business. On a regional basis, Asia accounted for 41 percent of sales, Europe 31 percent, North America 27 percent and South America 1 percent.
Gross margin was $131 million, compared with $118 million a year earlier. Adjusted EBITDA, a non-GAAP measure as defined below, was $98 million, compared with $83 million in 2015. The improvement in gross margin and adjusted EBITDA was driven by increased production volumes, new business and favorable currency.
Sales totaled $13 million, a decrease of $17 million from the fourth quarter of 2015. The decrease largely reflects the sale of the German interiors facility in the fourth quarter of 2015. Gross margin included a loss from legacy climate and interiors operations of $2 million in 2016 and $4 million in 2015.
All facilities included in Other operations and in discontinued operations were either sold or closed by year-end. Visteon does not expect to record sales or adjusted EBITDA related to these operations in the future. The company projects that the majority of remaining cash settlements related to its legacy agreements will occur in the first half of 2017.