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Dec 31, 2020
Visteon Q4 2020 Earnings Report
Visteon's Q4 2020 financial performance was announced, revealing increased net sales and new business wins.
Key Takeaways
Visteon reported Q4 net sales of $787 million, a 5% year-over-year increase excluding currency effects. The company achieved a net income of $18 million, or $0.64 per diluted share, and an adjusted EBITDA of $75 million. New business wins totaled $1.4 billion, including a battery management system award. The company's net cash position at year-end was $151 million.
Net sales reached $787 million, up 5% year-over-year excluding currency impact.
Net income was $18 million, or $0.64 per diluted share.
Adjusted EBITDA stood at $75 million, representing 9.5% of sales.
New business wins amounted to $1.4 billion, including a battery management system award.
Visteon
Visteon
Forward Guidance
Visteon's full-year 2021 guidance projects sales in the range of $2.875 billion to $3.025 billion, adjusted EBITDA in the range of $230 million to $270 million, and adjusted free cash flow in the range of $35 million to $65 million. The 2021 sales guidance reflects current customer and supplier communication regarding the semiconductor shortages.
Positive Outlook
- Sales are anticipated to increase approximately 16% year over year.
- Growth driven by the rebound in industry production volumes.
- Growth driven by continued growth over market due to new product launches.
- More than 50 new products are scheduled to launch this year.
- New products are projected to generate more than $7 billion dollars in lifetime revenue.
Challenges Ahead
- Sales guidance reflects current customer and supplier communication regarding the semiconductor shortages.
- Continued and future impacts of the coronavirus (COVID-19) pandemic on our financial condition and business operations including global supply chain disruptions, market downturns, reduced consumer demand and new government actions or restrictions
- Significant or prolonged shortage of critical components from our suppliers, including but not limited to semiconductors, and particularly those who are our sole or primary sources
- Conditions within the automotive industry, including (i) the automotive vehicle production volumes and schedules of our customers, (ii) the financial condition of our customers and the effects of any restructuring or reorganization plans that may be undertaken by our customers, including work stoppages at our customers, and (iii) possible disruptions in the supply of commodities to us or our customers due to financial distress, work stoppages, natural disasters or civil unrest.
- General economic conditions, including changes in interest rates and fuel prices