VAN BUREN TOWNSHIP, Mich., April 25, 2024 — Visteon Corporation (NASDAQ: VC), reported net sales of $933 million compared to $967 million in the first quarter of the prior year. The decline in net sales was primarily due to lower recoveries resulting from improved semiconductor supply in the first quarter of 2024 and 1% lower customer vehicle production. Visteon’s sales outperformed customer vehicle production volumes by 2%, driven by the ramp up of recent product launches and continued growth of our electrification products.
Gross margin in the first quarter was $119 million, and net income attributable to Visteon was $42 million, or $1.50 per diluted share. Adjusted EBITDA, a non-GAAP measure as defined below, reached $102 million, rising by $3 million from the previous year. The increase in adjusted EBITDA reflects the favorable impact of strong operational performance and ongoing cost and commercial discipline. This is partially offset by the timing of engineering recoveries and an unfavorable foreign exchange impact. Adjusted EBITDA margin was 10.9% of sales, an increase of 70 basis points compared to the prior year.
The company won $1.4 billion in new business in the first quarter, continuing to position Visteon as a leader in the digitalization of the cockpit. In the first quarter, wins totaled over $400 million, with notable contracts such as dual 12″ displays for a European commercial vehicle OEM and a 10″ cross-carline display for another European OEM. Additionally, an 8″ ultra-thin OLED rear seat monitor was secured for a German luxury OEM. In the quarter, additional victories were secured, notably a 12″ digital cluster collaboration with a Japanese OEM, showcasing continued momentum. SmartCore™ program achieved a win with a domestic Chinese OEM for a premium brand. In the quarter, we secured over $300 million in wins, expanding into adjacent markets for two-wheelers and commercial vehicles.
Visteon’s products launched on 26 vehicle models across 14 OEMs in the first quarter. These product launches continue to build the foundation for Visteon’s ongoing market outperformance. Key new launches included a digital cluster, a center display, and audio infotainment on the Ford Puma for Europe. Moreover, a digital cluster debuted on the Honda e:NS2 electric vehicle for several Asian markets including China. Additionally, a SmartCore™ program launched on Scania commercial vehicles, showcasing our success in the commercial vehicle market.
For the first three months of 2024, cash provided by operations was $69 million and capital expenditures were $37 million. Adjusted free cash flow, a non-GAAP financial measure as defined below was $34 million. The company ended the first quarter of 2024 with cash of $507 million and debt of $332 million. Moreover, this represented a net cash position of $175 million.
Visteon repurchased $20 million of shares in the first quarter of 2024 under the $300 million share repurchase authorization announced in March 2023.
“Our first quarter results highlight our continued progress on addressing the megatrends of digitalization. These trends are rapidly changing the automotive industry, especially electrification. I am exceedingly proud of our consistent operational execution, launching numerous new products worldwide to aid customers, driving short-term growth. We are also strengthening our future with another strong quarter of new business wins across our digital cockpit products. We are further diversifying into adjacent end markets.” says Sachin Lawande, President and CEO, Visteon
Visteon is maintaining its full-year 2024 guidance. The company anticipates sales in the range of $4.0 to $4.2 billion, adjusted EBITDA in the range of $470 to $500 million, and adjusted free cash flow in the range of $155 to $185 million.
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