Visteon’s third-quarter net income fell 33 percent to $14 million, but revenue was up 7 percent to $731 million because of new product launches, the supplier said Thursday.
The company — which makes instrument clusters, head-up displays, infotainment and audio systems and other electronics — reported adjusted earnings before interest, taxes, depreciation and amortization of $62 million in the third quarter compared with $71 million in the third quarter of 2018.
Visteon narrowed its full-year outlook to $2.925 billion to $2.975 billion, from a previous range of $2.9 billion to $3 billion. It maintained its previous full-year adjusted EBITDA guidance of $230 million to $250 million. The company’s free cash flow outlook increased to $40 million to $60 million, up from the previous range of $30 million to $50 million.
During the first nine months of 2019, Visteon secured new business worth $4.6 billion in lifetime sales, the supplier said.
“Our revenue growth in the third quarter reflected the positive impact of the high number of new product launches over the last 12 months,” CEO Sachin Lawande said in a statement. “Despite a challenging vehicle production environment, our revenues increased by 7 percent year-over-year, representing 10 percentage points over market.”
Shares of Visteon were up nearly 16 percent to $97.04 in midday trading Thursday. Baird Equity Research analyst David Leiker said in a note that the new business helped Visteon outpace a down market for light-vehicle production.
“The last time Visteon delivered double-digit organic growth above market was in 2011,” Leiker wrote. “We believe this supports our view that the backlog-driven revenue inflection is real.”
Adjusted free cash flow for the third quarter was $23 million, up from negative $42 million in the third quarter of 2018.
Visteon ranks No. 72 on the Automotive News list of the top 100 global suppliers, with worldwide parts sales to automakers of $2.98 billion in 2018.