Automobile

Visteon swings to $16M net income, adds $1.8B in new business in Q1

Auto supplier Visteon Corp. on Thursday said its performance in the second half of 2020 allowed it to zero in on growth strategies during the first quarter of 2021.

The supplier of automotive cockpit electronics swung to net income of $16 million for the first quarter from a loss of $35 million during the pandemic-damaged first quarter of 2020. Sales improved 16 percent to $746 million.

The company grew its backlog of new business, reporting $1.8 billion in new business during the first quarter. That’s compared with $800 million in new business landed during the same quarter last year.

Visteon also launched six new products, most of them digital clusters, in the quarter. The company said it expects to launch more than 50 products during the year.

Adjusted earnings before interest, taxes, depreciation and amortization was $64 million, up nearly 94 percent from the year-earlier period. Gross margin in the first quarter was $73 million, an increase of 38 percent from the year-earlier period.

“Following our strong performance in the second half of 2020, Visteon continued to execute its growth strategy in the first quarter of 2021,” CEO Sachin Lawande said in a statement. “The $1.8 billion of new business booked in the first quarter shows the strength of our core products and their alignment with the key industry trends of digitalization and electrification.”

Visteon shares rose 1.9 percent to close at $126.33 on Thursday.

Visteon 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.

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