In the second quarter, Visteon reported net sales of $848 million, up 42% year over year, excluding the impact of currency. It said the big gains came from new product launches and positive pricing from incremental cost recoveries related to semiconductor shortages.
Overall production in the sector remained stable, while auto production at Visteon’s main customers grew by 6% over the same period. The company’s sales performance represents 36% growth over the market, the 13th consecutive quarter that the market has outperformed.
Second quarter gross margin was $74 million, and net income attributable to Visteon was $24 million or $0.85 per diluted share. Adjusted EBITDA, a non-GAAP measure as defined below, was $79 million for the second quarter or 9.3% of sales, an increase of $49 million from the prior year. The adjusted EBITDA increase reflects the favorable impact of higher sales volumes and higher customer chargebacks, net of higher semiconductor costs.
Visteon said it launched 11 new products in the second quarter, bringing the total to 27 new launches in the first half. Key launches in the second quarter include a 12-inch all-digital cluster for the Ford Everest and Ranger and a curved multi-display module on the Maserati Grecale, the all-new flagship crossover SUV for Maserati.
The company also launched a SmartCore cockpit controller with Geely on their new all-electric SUV under the Smart brand, as well as a 10.25-inch infotainment system and display on PSA’s Citroen C3 with support for Apple CarPlay and Android Auto in the South American market. .
Visteon said it landed $3.1 billion in new business in the first half of the year, with more than 50% of its electric vehicle variant programs. Second quarter wins included our latest generation SmartCore™ cockpit domain controller on an all-electric SUV platform for a European OEM, our first cockpit domain controller with the automaker. Visteon also won a 12-inch display for a luxury German OEM, also our first central information display win with this OEM.
Sachin Lawande, President and CEO of Visteon said: “I am proud of Visteon’s double-digit growth-over-market performance in a supply-constrained environment, exacerbated by the lockdown in Shanghai due to COVID-19. The Visteon team performed exceptionally well to secure supplies and support our customers’ production in this challenging environment. Our digital products continue to perform well and we are pleased to report another strong quarter of new business with total revenues exceeding $2 billion.”
Visteon maintains its full-year 2022 outlook and expects revenue of $3.150-$3.350 billion, Adjusted EBITDA of $295-$335 million and Adjusted Free Cash Flow of $85-$115 million.