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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Visteon Corporation | NASDAQ:VC | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 111.17 | 109.56 | 113.74 | 0 | 01:00:00 |
State of
|
Delaware
|
|
38-3519512
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
||
One Village Center Drive,
|
Van Buren Township,
|
Michigan
|
48111
|
(Address of principal executive offices)
|
(Zip code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, Par Value $.01 Per Share
|
VC
|
The NASDAQ Stock Market LLC
|
Page
|
||
|
||
|
||
|
||
|
||
|
Consolidated Statements of Changes in Equity (Unaudited)
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
Item 1.
|
Consolidated Financial Statements
|
|
Three Months Ended June 30
|
|
Six Months Ended
June 30 |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Sales
|
$
|
733
|
|
|
$
|
758
|
|
|
$
|
1,470
|
|
|
$
|
1,572
|
|
Cost of sales
|
(663
|
)
|
|
(654
|
)
|
|
(1,334
|
)
|
|
(1,339
|
)
|
||||
Gross margin
|
70
|
|
|
104
|
|
|
136
|
|
|
233
|
|
||||
Selling, general and administrative expenses
|
(58
|
)
|
|
(55
|
)
|
|
(115
|
)
|
|
(99
|
)
|
||||
Restructuring expense
|
—
|
|
|
(5
|
)
|
|
(1
|
)
|
|
(10
|
)
|
||||
Interest expense
|
(3
|
)
|
|
(3
|
)
|
|
(6
|
)
|
|
(7
|
)
|
||||
Interest income
|
1
|
|
|
1
|
|
|
2
|
|
|
3
|
|
||||
Equity in net income of non-consolidated affiliates
|
3
|
|
|
4
|
|
|
6
|
|
|
7
|
|
||||
Other income, net
|
3
|
|
|
3
|
|
|
5
|
|
|
10
|
|
||||
Income before income taxes
|
16
|
|
|
49
|
|
|
27
|
|
|
137
|
|
||||
Provision for income taxes
|
(8
|
)
|
|
(12
|
)
|
|
(3
|
)
|
|
(33
|
)
|
||||
Net income from continuing operations
|
8
|
|
|
37
|
|
|
24
|
|
|
104
|
|
||||
Income (loss) from discontinued operations, net of tax
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
||||
Net income
|
8
|
|
|
36
|
|
|
24
|
|
|
105
|
|
||||
Net income attributable to non-controlling interests
|
(1
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
(5
|
)
|
||||
Net income attributable to Visteon Corporation
|
$
|
7
|
|
|
$
|
35
|
|
|
$
|
21
|
|
|
$
|
100
|
|
|
|
|
|
|
|
|
|
||||||||
Comprehensive income (loss)
|
$
|
4
|
|
|
$
|
(9
|
)
|
|
$
|
25
|
|
|
$
|
83
|
|
Comprehensive income (loss) attributable to Visteon Corporation
|
$
|
4
|
|
|
$
|
(3
|
)
|
|
$
|
22
|
|
|
$
|
79
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.25
|
|
|
$
|
1.22
|
|
|
$
|
0.75
|
|
|
$
|
3.29
|
|
Discontinued operations
|
—
|
|
|
(0.03
|
)
|
|
—
|
|
|
0.03
|
|
||||
Basic earnings per share attributable to Visteon Corporation
|
$
|
0.25
|
|
|
$
|
1.19
|
|
|
$
|
0.75
|
|
|
$
|
3.32
|
|
Diluted earnings (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.25
|
|
|
$
|
1.20
|
|
|
$
|
0.74
|
|
|
$
|
3.26
|
|
Discontinued operations
|
—
|
|
|
(0.03
|
)
|
|
—
|
|
|
0.03
|
|
||||
Diluted earnings per share attributable to Visteon Corporation
|
$
|
0.25
|
|
|
$
|
1.17
|
|
|
$
|
0.74
|
|
|
$
|
3.29
|
|
|
(Unaudited)
|
|
|
||||
|
June 30
|
|
December 31
|
||||
|
2019
|
|
2018
|
||||
ASSETS
|
|||||||
Cash and equivalents
|
$
|
435
|
|
|
$
|
463
|
|
Restricted cash
|
3
|
|
|
4
|
|
||
Accounts receivable, net
|
468
|
|
|
486
|
|
||
Inventories, net
|
187
|
|
|
184
|
|
||
Other current assets
|
190
|
|
|
159
|
|
||
Total current assets
|
1,283
|
|
|
1,296
|
|
||
Property and equipment, net
|
414
|
|
|
397
|
|
||
Intangible assets, net
|
126
|
|
|
129
|
|
||
Right to use assets, net
|
164
|
|
|
—
|
|
||
Investments in non-consolidated affiliates
|
48
|
|
|
42
|
|
||
Other non-current assets
|
157
|
|
|
143
|
|
||
Total assets
|
$
|
2,192
|
|
|
$
|
2,007
|
|
LIABILITIES AND EQUITY
|
|||||||
Short-term debt
|
$
|
54
|
|
|
$
|
57
|
|
Accounts payable
|
447
|
|
|
436
|
|
||
Accrued employee liabilities
|
71
|
|
|
67
|
|
||
Current lease liabilities
|
29
|
|
|
—
|
|
||
Other current liabilities
|
161
|
|
|
161
|
|
||
Total current liabilities
|
762
|
|
|
721
|
|
||
Long-term debt
|
348
|
|
|
348
|
|
||
Employee benefits
|
252
|
|
|
257
|
|
||
Non-current lease liabilities
|
139
|
|
|
—
|
|
||
Deferred tax liabilities
|
26
|
|
|
23
|
|
||
Other non-current liabilities
|
72
|
|
|
76
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Preferred stock (par value $0.01, 50 million shares authorized, none outstanding as of June 30, 2019 and December 31, 2018)
|
—
|
|
|
—
|
|
||
Common stock (par value $0.01, 250 million shares authorized, 55 million shares issued, 28 million shares outstanding as of June 30, 2019 and December 31, 2018)
|
1
|
|
|
1
|
|
||
Additional paid-in capital
|
1,338
|
|
|
1,335
|
|
||
Retained earnings
|
1,630
|
|
|
1,609
|
|
||
Accumulated other comprehensive loss
|
(215
|
)
|
|
(216
|
)
|
||
Treasury stock
|
(2,277
|
)
|
|
(2,264
|
)
|
||
Total Visteon Corporation stockholders’ equity
|
477
|
|
|
465
|
|
||
Non-controlling interests
|
116
|
|
|
117
|
|
||
Total equity
|
593
|
|
|
582
|
|
||
Total liabilities and equity
|
$
|
2,192
|
|
|
$
|
2,007
|
|
|
Six Months Ended
June 30 |
||||||
|
2019
|
|
2018
|
||||
Operating Activities
|
|
|
|
||||
Net income
|
$
|
24
|
|
|
$
|
105
|
|
Adjustments to reconcile net income to net cash provided from operating activities:
|
|
|
|
||||
Depreciation and amortization
|
49
|
|
|
45
|
|
||
Equity in net income of non-consolidated affiliates, net of dividends remitted
|
(6
|
)
|
|
(7
|
)
|
||
Non-cash stock-based compensation
|
11
|
|
|
—
|
|
||
Gains on transactions
|
—
|
|
|
(3
|
)
|
||
Other non-cash items
|
5
|
|
|
2
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
18
|
|
|
85
|
|
||
Inventories
|
(3
|
)
|
|
(14
|
)
|
||
Accounts payable
|
20
|
|
|
(8
|
)
|
||
Other assets and other liabilities
|
(57
|
)
|
|
(79
|
)
|
||
Net cash provided from operating activities
|
61
|
|
|
126
|
|
||
Investing Activities
|
|
|
|
||||
Capital expenditures, including intangibles
|
(71
|
)
|
|
(69
|
)
|
||
Loan repayments from non-consolidated affiliates
|
2
|
|
|
2
|
|
||
Other
|
2
|
|
|
1
|
|
||
Net cash used by investing activities
|
(67
|
)
|
|
(66
|
)
|
||
Financing Activities
|
|
|
|
||||
Short-term debt, net
|
(3
|
)
|
|
(16
|
)
|
||
Repurchase of common stock
|
(20
|
)
|
|
(200
|
)
|
||
Distribution payments
|
—
|
|
|
(14
|
)
|
||
Other
|
—
|
|
|
(3
|
)
|
||
Net cash used by financing activities
|
(23
|
)
|
|
(233
|
)
|
||
Effect of exchange rate changes on cash
|
—
|
|
|
(8
|
)
|
||
Net decrease in cash
|
(29
|
)
|
|
(181
|
)
|
||
Cash and restricted cash at beginning of the period
|
467
|
|
|
709
|
|
||
Cash and restricted cash at end of the period
|
$
|
438
|
|
|
$
|
528
|
|
|
Total Visteon Corporation Stockholders' Equity
|
|
|
|
|
||||||||||||||||||||||||||
|
Common
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury
Stock
|
|
Total Visteon Corporation Stockholders' Equity
|
|
Non-Controlling Interests
|
|
Total Equity
|
||||||||||||||||
December 31, 2018
|
$
|
1
|
|
|
$
|
1,335
|
|
|
$
|
1,609
|
|
|
$
|
(216
|
)
|
|
$
|
(2,264
|
)
|
|
$
|
465
|
|
|
$
|
117
|
|
|
$
|
582
|
|
Net income
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
2
|
|
|
16
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
1
|
|
|
5
|
|
||||||||
Stock-based compensation, net
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
7
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||||
Dividends payable
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
||||||||
March 31, 2019
|
$
|
1
|
|
|
$
|
1,332
|
|
|
$
|
1,623
|
|
|
$
|
(212
|
)
|
|
$
|
(2,257
|
)
|
|
$
|
487
|
|
|
$
|
118
|
|
|
$
|
605
|
|
Net income
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
1
|
|
|
8
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|
(1
|
)
|
|
(4
|
)
|
||||||||
Stock-based compensation, net
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||||||
Repurchase of shares of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|
(20
|
)
|
|
—
|
|
|
(20
|
)
|
||||||||
Dividends payable
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||||
June 30, 2019
|
$
|
1
|
|
|
$
|
1,338
|
|
|
$
|
1,630
|
|
|
$
|
(215
|
)
|
|
$
|
(2,277
|
)
|
|
$
|
477
|
|
|
$
|
116
|
|
|
$
|
593
|
|
|
Total Visteon Corporation Stockholders' Equity
|
|
|
|
|
||||||||||||||||||||||||||
|
Common
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury
Stock
|
|
Total Visteon Corporation Stockholders' Equity
|
|
Non-Controlling Interests
|
|
Total Equity
|
||||||||||||||||
December 31, 2017
|
$
|
1
|
|
|
$
|
1,339
|
|
|
$
|
1,445
|
|
|
$
|
(174
|
)
|
|
$
|
(1,974
|
)
|
|
$
|
637
|
|
|
$
|
124
|
|
|
$
|
761
|
|
Net income
|
—
|
|
|
—
|
|
|
65
|
|
|
—
|
|
|
—
|
|
|
65
|
|
|
4
|
|
|
69
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
|
6
|
|
|
23
|
|
||||||||
Stock-based compensation, net
|
—
|
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
5
|
|
|
(13
|
)
|
|
—
|
|
|
(13
|
)
|
||||||||
Repurchase of shares of common stock
|
—
|
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
(170
|
)
|
|
(200
|
)
|
|
—
|
|
|
(200
|
)
|
||||||||
Dividends payable
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
(25
|
)
|
||||||||
March 31, 2018
|
$
|
1
|
|
|
$
|
1,291
|
|
|
$
|
1,510
|
|
|
$
|
(157
|
)
|
|
$
|
(2,139
|
)
|
|
$
|
506
|
|
|
$
|
109
|
|
|
$
|
615
|
|
Net income
|
—
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|
1
|
|
|
36
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(38
|
)
|
|
—
|
|
|
(38
|
)
|
|
(7
|
)
|
|
(45
|
)
|
||||||||
Stock-based compensation, net
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
13
|
|
|
|
|
|
13
|
|
||||||||
Dividends payable
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||||
June 30, 2018
|
$
|
1
|
|
|
$
|
1,302
|
|
|
$
|
1,545
|
|
|
$
|
(195
|
)
|
|
$
|
(2,137
|
)
|
|
$
|
516
|
|
|
$
|
100
|
|
|
$
|
616
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(Dollars in Millions)
|
||||||||||||||
Pension financing benefits, net
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
5
|
|
|
$
|
6
|
|
Transformation initiatives
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
5
|
|
|
$
|
10
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(Dollars in Millions)
|
||||||||||||||
Product Lines
|
|
|
|
|
|
|
|
||||||||
Instrument clusters
|
$
|
323
|
|
|
$
|
307
|
|
|
$
|
637
|
|
|
$
|
633
|
|
Audio and infotainment
|
184
|
|
|
194
|
|
|
380
|
|
|
402
|
|
||||
Information displays
|
122
|
|
|
126
|
|
|
245
|
|
|
266
|
|
||||
Body and security
|
32
|
|
|
30
|
|
|
64
|
|
|
61
|
|
||||
Climate controls
|
20
|
|
|
31
|
|
|
41
|
|
|
71
|
|
||||
Telematics
|
11
|
|
|
16
|
|
|
22
|
|
|
34
|
|
||||
Other
|
41
|
|
|
54
|
|
|
81
|
|
|
105
|
|
||||
|
$
|
733
|
|
|
$
|
758
|
|
|
$
|
1,470
|
|
|
$
|
1,572
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(Dollars in Millions)
|
||||||||||||||
Net income attributable to Visteon Corporation
|
$
|
7
|
|
|
$
|
35
|
|
|
$
|
21
|
|
|
$
|
100
|
|
Depreciation and amortization
|
24
|
|
|
23
|
|
|
49
|
|
|
45
|
|
||||
Non-cash, stock-based compensation expense
|
6
|
|
|
6
|
|
|
11
|
|
|
—
|
|
||||
Provision for income taxes
|
8
|
|
|
12
|
|
|
3
|
|
|
33
|
|
||||
Interest expense, net
|
2
|
|
|
2
|
|
|
4
|
|
|
4
|
|
||||
Net income attributable to non-controlling interests
|
1
|
|
|
1
|
|
|
3
|
|
|
5
|
|
||||
Restructuring expense
|
—
|
|
|
5
|
|
|
1
|
|
|
10
|
|
||||
Loss (income) from discontinued operations, net of tax
|
—
|
|
|
1
|
|
|
—
|
|
|
(1
|
)
|
||||
Equity in net income of non-consolidated affiliates
|
(3
|
)
|
|
(4
|
)
|
|
(6
|
)
|
|
(7
|
)
|
||||
Other
|
1
|
|
|
—
|
|
|
1
|
|
|
(4
|
)
|
||||
Adjusted EBITDA
|
$
|
46
|
|
|
$
|
81
|
|
|
$
|
87
|
|
|
$
|
185
|
|
|
Three Months Ended June 30
|
|
Six Months Ended
June 30 |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(In Millions, Except Per Share Amounts)
|
||||||||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income from continuing operations attributable to Visteon
|
$
|
7
|
|
|
$
|
36
|
|
|
$
|
21
|
|
|
$
|
99
|
|
Net income (loss) from discontinued operations attributable to Visteon
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
||||
Net income attributable to Visteon
|
$
|
7
|
|
|
$
|
35
|
|
|
$
|
21
|
|
|
$
|
100
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Average common stock outstanding - basic
|
28.1
|
|
|
29.6
|
|
|
28.1
|
|
|
30.1
|
|
||||
Dilutive effect of performance based share units and other
|
0.1
|
|
|
0.3
|
|
|
0.1
|
|
|
0.3
|
|
||||
Diluted shares
|
28.2
|
|
|
29.9
|
|
|
28.2
|
|
|
30.4
|
|
||||
Basic and Diluted Per Share Data:
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share attributable to Visteon:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.25
|
|
|
$
|
1.22
|
|
|
$
|
0.75
|
|
|
$
|
3.29
|
|
Discontinued operations
|
—
|
|
|
(0.03
|
)
|
|
—
|
|
|
0.03
|
|
||||
|
$
|
0.25
|
|
|
$
|
1.19
|
|
|
$
|
0.75
|
|
|
$
|
3.32
|
|
Diluted earnings (loss) per share attributable to Visteon:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.25
|
|
|
$
|
1.20
|
|
|
$
|
0.74
|
|
|
$
|
3.26
|
|
Discontinued operations
|
—
|
|
|
(0.03
|
)
|
|
—
|
|
|
0.03
|
|
||||
|
$
|
0.25
|
|
|
$
|
1.17
|
|
|
$
|
0.74
|
|
|
$
|
3.29
|
|
|
Electronics
|
|
Other and Discontinued Operations
|
|
Total
|
||||||
|
(Dollars in Millions)
|
||||||||||
December 31, 2018
|
$
|
20
|
|
|
$
|
3
|
|
|
$
|
23
|
|
Expense
|
2
|
|
|
—
|
|
|
2
|
|
|||
Utilization
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|||
Change in estimate
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|||
Foreign currency
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
March 31, 2019
|
$
|
17
|
|
|
$
|
2
|
|
|
$
|
19
|
|
Expense
|
2
|
|
|
—
|
|
|
2
|
|
|||
Utilization
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||
Change in estimate
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||
June 30, 2019
|
$
|
12
|
|
|
$
|
2
|
|
|
$
|
14
|
|
|
June 30
|
|
December 31
|
||||
|
2019
|
|
2018
|
||||
|
(Dollars in Millions)
|
||||||
Payables due to YFVIC
|
$
|
18
|
|
|
$
|
17
|
|
Exposure to loss in YFVIC:
|
|
|
|
||||
Investment in YFVIC
|
$
|
44
|
|
|
$
|
38
|
|
Receivables due from YFVIC
|
35
|
|
|
36
|
|
||
Subordinated loan receivable from YFVIC
|
18
|
|
|
20
|
|
||
Loan guarantee of YFVIC debt
|
11
|
|
|
11
|
|
||
Maximum exposure to loss in YFVIC
|
$
|
108
|
|
|
$
|
105
|
|
|
June 30
|
|
December 31
|
||||
|
2019
|
|
2018
|
||||
|
(Dollars in Millions)
|
||||||
Raw materials
|
$
|
121
|
|
|
$
|
124
|
|
Work-in-process
|
23
|
|
|
26
|
|
||
Finished products
|
43
|
|
|
34
|
|
||
|
$
|
187
|
|
|
$
|
184
|
|
|
|
|
June 30, 2019
|
||||||||||
|
Estimated Weighted Average Useful Life (years)
|
|
Gross Intangibles
|
|
Accumulated Amortization
|
|
Net Intangibles
|
||||||
|
|
|
(Dollars in Millions)
|
||||||||||
Definite-Lived:
|
|
|
|||||||||||
Developed technology
|
8
|
|
$
|
40
|
|
|
$
|
(33
|
)
|
|
$
|
7
|
|
Customer related
|
10
|
|
90
|
|
|
(46
|
)
|
|
44
|
|
|||
Capitalized software development
|
4
|
|
21
|
|
|
(4
|
)
|
|
17
|
|
|||
Other
|
21
|
|
14
|
|
|
(3
|
)
|
|
11
|
|
|||
Subtotal
|
|
|
165
|
|
|
(86
|
)
|
|
79
|
|
|||
Indefinite-Lived:
|
|
|
|||||||||||
Goodwill
|
|
|
47
|
|
|
—
|
|
|
47
|
|
|||
Total
|
|
|
$
|
212
|
|
|
$
|
(86
|
)
|
|
$
|
126
|
|
|
December 31, 2018
|
|
June 30, 2019
|
||||||||||||||||||||
|
Gross Intangibles
|
|
Accumulated Amortization
|
|
Net Intangibles
|
|
Additions
|
|
Amortization Expense
|
|
Net Intangibles
|
||||||||||||
|
(Dollars in Millions)
|
||||||||||||||||||||||
Definite-Lived:
|
|
|
|
|
|||||||||||||||||||
Developed technology
|
$
|
40
|
|
|
$
|
(31
|
)
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
7
|
|
Customer related
|
90
|
|
|
(42
|
)
|
|
48
|
|
|
—
|
|
|
(4
|
)
|
|
$
|
44
|
|
|||||
Capitalized software development
|
16
|
|
|
(3
|
)
|
|
13
|
|
|
5
|
|
|
(1
|
)
|
|
$
|
17
|
|
|||||
Other
|
14
|
|
|
(2
|
)
|
|
12
|
|
|
—
|
|
|
(1
|
)
|
|
$
|
11
|
|
|||||
Subtotal
|
160
|
|
|
(78
|
)
|
|
82
|
|
|
5
|
|
|
(8
|
)
|
|
$
|
79
|
|
|||||
Indefinite-Lived:
|
|
|
|
|
|||||||||||||||||||
Goodwill
|
47
|
|
|
—
|
|
|
47
|
|
|
—
|
|
|
—
|
|
|
$
|
47
|
|
|||||
Total
|
$
|
207
|
|
|
$
|
(78
|
)
|
|
$
|
129
|
|
|
$
|
5
|
|
|
$
|
(8
|
)
|
|
$
|
126
|
|
|
June 30
|
|
December 31
|
||||
|
2019
|
|
2018
|
||||
|
(Dollars in Millions)
|
||||||
Recoverable taxes
|
$
|
65
|
|
|
$
|
46
|
|
Contractually reimbursable engineering costs
|
41
|
|
|
40
|
|
||
Joint venture receivables
|
40
|
|
|
37
|
|
||
Prepaid assets and deposits
|
24
|
|
|
20
|
|
||
China bank notes
|
15
|
|
|
12
|
|
||
Other
|
5
|
|
|
4
|
|
||
|
$
|
190
|
|
|
$
|
159
|
|
|
June 30
|
|
December 31
|
||||
|
2019
|
|
2018
|
||||
|
(Dollars in Millions)
|
||||||
Deferred tax assets
|
$
|
59
|
|
|
$
|
45
|
|
Recoverable taxes
|
31
|
|
|
33
|
|
||
Contractually reimbursable engineering costs
|
25
|
|
|
29
|
|
||
Joint venture receivables
|
18
|
|
|
20
|
|
||
Other
|
24
|
|
|
16
|
|
||
|
$
|
157
|
|
|
$
|
143
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||
|
2019
|
||||||
|
(Dollars in Millions)
|
||||||
Operating lease cost (includes immaterial variable lease costs)
|
$
|
(11
|
)
|
|
$
|
(21
|
)
|
Short-term lease cost
|
—
|
|
|
(1
|
)
|
||
Sublease income
|
1
|
|
|
2
|
|
||
Total lease cost
|
$
|
(10
|
)
|
|
$
|
(20
|
)
|
|
Six Months Ended June 30
|
||
|
2019
|
||
|
(Dollars in Millions)
|
||
Cash flows from operating leases
|
$
|
19
|
|
Right-of-use assets obtained in exchange for lease obligations
|
$
|
19
|
|
|
June 30
|
|
December 31
|
||||
|
2019
|
|
2018
|
||||
|
(Dollars in Millions)
|
||||||
Short-Term Debt:
|
|
|
|
||||
Short-term borrowings
|
$
|
54
|
|
|
$
|
57
|
|
|
|
|
|
||||
Long-Term Debt:
|
|
|
|
||||
Term debt facility
|
$
|
348
|
|
|
$
|
348
|
|
|
June 30
|
|
December 31
|
||||
|
2019
|
|
2018
|
||||
|
(Dollars in Millions)
|
||||||
Product warranty and recall accruals
|
$
|
38
|
|
|
$
|
34
|
|
Rent and royalties
|
21
|
|
|
14
|
|
||
Deferred income
|
19
|
|
|
16
|
|
||
Joint venture payables
|
18
|
|
|
17
|
|
||
Non-income taxes payable
|
15
|
|
|
13
|
|
||
Restructuring reserves
|
14
|
|
|
23
|
|
||
Income taxes payable
|
9
|
|
|
15
|
|
||
Dividends payable to non-controlling interests
|
5
|
|
|
3
|
|
||
Other
|
22
|
|
|
26
|
|
||
|
$
|
161
|
|
|
$
|
161
|
|
|
June 30
|
|
December 31
|
||||
|
2019
|
|
2018
|
||||
|
(Dollars in Millions)
|
||||||
Derivative financial instruments
|
$
|
21
|
|
|
$
|
18
|
|
Product warranty and recall accruals
|
16
|
|
|
14
|
|
||
Deferred income
|
9
|
|
|
14
|
|
||
Income tax reserves
|
5
|
|
|
6
|
|
||
Non-income tax reserves
|
4
|
|
|
5
|
|
||
Other
|
17
|
|
|
19
|
|
||
|
$
|
72
|
|
|
$
|
76
|
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(Dollars in Millions)
|
||||||||||||||
Costs Recognized in Income:
|
|
|
|
|
|
|
|
||||||||
Pension service cost:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
Pension financing benefit (cost):
|
|
|
|
|
|
|
|
||||||||
Interest cost
|
(7
|
)
|
|
(7
|
)
|
|
(2
|
)
|
|
(2
|
)
|
||||
Expected return on plan assets
|
10
|
|
|
10
|
|
|
3
|
|
|
3
|
|
||||
Amortization of losses and other
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||
Net pension benefit (cost)
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(Dollars in Millions)
|
||||||||||||||
Costs Recognized in Income:
|
|
|
|
|
|
|
|
||||||||
Pension service cost:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
Pension financing benefit (cost):
|
|
|
|
|
|
|
|
||||||||
Interest cost
|
(15
|
)
|
|
(14
|
)
|
|
(4
|
)
|
|
(4
|
)
|
||||
Expected return on plan assets
|
20
|
|
|
20
|
|
|
5
|
|
|
5
|
|
||||
Amortization of losses and other
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||
Restructuring related pension cost:
|
|
|
|
|
|
|
|
||||||||
Special termination benefits
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||
Net pension benefit (cost)
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
June 30
|
|
December 31
|
||||
|
2019
|
|
2018
|
||||
|
(Dollars in Millions)
|
||||||
Yanfeng Visteon Automotive Electronics Co., Ltd.
|
$
|
58
|
|
|
$
|
56
|
|
Shanghai Visteon Automotive Electronics, Co., Ltd.
|
41
|
|
|
43
|
|
||
Changchun Visteon FAWAY Electronics, Co., Ltd.
|
16
|
|
|
15
|
|
||
Other
|
1
|
|
|
3
|
|
||
|
$
|
116
|
|
|
$
|
117
|
|
|
Three Months Ended June 30
|
|
Six Months Ended
June 30 |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(Dollars in Millions)
|
||||||||||||||
Changes in AOCI:
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
(212
|
)
|
|
$
|
(157
|
)
|
|
$
|
(216
|
)
|
|
$
|
(174
|
)
|
Other comprehensive (loss) income before reclassification, net of tax
|
(1
|
)
|
|
(39
|
)
|
|
4
|
|
|
(22
|
)
|
||||
Amounts reclassified from AOCI
|
(2
|
)
|
|
1
|
|
|
(3
|
)
|
|
1
|
|
||||
Ending balance
|
$
|
(215
|
)
|
|
$
|
(195
|
)
|
|
$
|
(215
|
)
|
|
$
|
(195
|
)
|
Changes in AOCI by Component:
|
|
|
|||||||||||||
Foreign currency translation adjustments
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
(142
|
)
|
|
$
|
(80
|
)
|
|
$
|
(142
|
)
|
|
$
|
(100
|
)
|
Other comprehensive income (loss) before reclassification, net of tax (a)
|
2
|
|
|
(49
|
)
|
|
2
|
|
|
(29
|
)
|
||||
Ending balance
|
(140
|
)
|
|
(129
|
)
|
|
(140
|
)
|
|
(129
|
)
|
||||
Net investment hedge
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
1
|
|
|
(18
|
)
|
|
(5
|
)
|
|
(12)
|
|
||||
Other comprehensive (loss) income before reclassification, net of tax (a)
|
—
|
|
|
8
|
|
|
7
|
|
|
2
|
|
||||
Amounts reclassified from AOCI
|
(2
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
||||
Ending balance
|
(1
|
)
|
|
(10)
|
|
|
(1
|
)
|
|
(10)
|
|
||||
Benefit plans
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
(71
|
)
|
|
(63
|
)
|
|
(71
|
)
|
|
(63
|
)
|
||||
Other comprehensive income before reclassification, net of tax (b)
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||
Amounts reclassified from AOCI (c)
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Ending balance
|
(70
|
)
|
|
(61
|
)
|
|
(70
|
)
|
|
(61
|
)
|
||||
Unrealized hedging gain (loss)
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
—
|
|
|
4
|
|
|
2
|
|
|
1
|
|
||||
Other comprehensive (loss) income before reclassification, net of tax (c)
|
(4
|
)
|
|
1
|
|
|
(6
|
)
|
|
4
|
|
||||
Ending balance
|
(4
|
)
|
|
5
|
|
|
(4
|
)
|
|
5
|
|
||||
Total AOCI
|
$
|
(215
|
)
|
|
$
|
(195
|
)
|
|
$
|
(215
|
)
|
|
$
|
(195
|
)
|
•
|
Level 1 – Financial assets and liabilities whose values are based on unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access.
|
•
|
Level 2 – Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable for substantially the full term of the asset or liability.
|
•
|
Level 3 – Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.
|
|
Recorded Income (Loss) into AOCI, net of tax
|
|
Reclassified from AOCI into Income (Loss)
|
|
Recorded in Income (Loss)
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
|
(Dollars in Millions)
|
||||||||||||||||||||||
Three months ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency risk - Sales:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow hedges
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Non-designated cash flow hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Foreign currency risk - Cost of sales:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow hedges
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Non-designated cash flow hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Interest rate risk - Interest expense, net:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swap
|
(4
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net investment hedges
|
—
|
|
|
8
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
$
|
(4
|
)
|
|
$
|
9
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Six months ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency risk - Sales:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow hedges
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Non-designated cash flow hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Foreign currency risk - Cost of sales:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow hedges
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Non-designated cash flow hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Interest rate risk - Interest expense, net:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swap
|
(6
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net investment hedges
|
7
|
|
|
2
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
$
|
1
|
|
|
$
|
6
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(Dollars in Millions)
|
||||||||||||||
Cost of sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
Selling, general and administrative expenses
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||
Restructuring, net
|
—
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
||||
Gain on divestitures
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||
Income (loss) from discontinued operations, net of tax
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
|
Six Months Ended June 30
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in Millions)
|
||||||
Beginning balance
|
$
|
48
|
|
|
$
|
49
|
|
Accruals for products shipped
|
10
|
|
|
9
|
|
||
Changes in estimates
|
1
|
|
|
(2
|
)
|
||
Specific cause actions
|
3
|
|
|
3
|
|
||
Recoverable warranty/recalls
|
—
|
|
|
2
|
|
||
Foreign currency
|
1
|
|
|
(1
|
)
|
||
Settlements
|
(9
|
)
|
|
(12
|
)
|
||
Ending balance
|
$
|
54
|
|
|
$
|
48
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
Transformation of the Automotive Cockpit as a Smart Mobile Digital Assistant
- The Company is an established global leader in cockpit electronics and is positioned to provide solutions as the industry transitions to the next generation automotive cockpit experience. The cockpit is becoming fully digital, connected, automated, learning, and voice enabled. Visteon's broad portfolio of cockpit electronics technology and the development of the DriveCore advanced safety platform positions Visteon to support these macro trends in automotive.
|
•
|
Long-Term Growth and Margin Expansion
- Visteon has continued to win an increasing level of business by demonstrating product quality, technical and development capability, new product innovation, reliability and timeliness, product design and manufacturing capability and flexibility, as well as overall customer service.
|
•
|
Enhance Shareholder Returns
- The Company has returned approximately $3.3 billion to shareholders since 2015 through a combination of share repurchases and a one-time special distribution of $1.75 billion in 2016. As of June 30, 2019 the Company’s Board of Directors has authorized the repurchase of an additional $380 million of the Company’s shares through December 31, 2020.
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||||
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||
|
(Units in Millions)
|
||||||||||||||||
Global
|
22.3
|
|
|
24.1
|
|
|
(7.5
|
)%
|
|
45.2
|
|
|
48.4
|
|
|
(6.7
|
)%
|
China
|
5.6
|
|
|
6.7
|
|
|
(16.2
|
)%
|
|
11.7
|
|
|
13.5
|
|
|
(13.5
|
)%
|
Other Asia Pacific
|
5.5
|
|
|
5.5
|
|
|
0.1
|
%
|
|
11.1
|
|
|
11.2
|
|
|
(0.2
|
)%
|
Europe
|
5.6
|
|
|
6.0
|
|
|
(6.6
|
)%
|
|
11.2
|
|
|
11.9
|
|
|
(5.6
|
)%
|
Americas
|
5.1
|
|
|
5.2
|
|
|
(2.0
|
)%
|
|
10.2
|
|
|
10.4
|
|
|
(2.6
|
)%
|
Other
|
0.5
|
|
|
0.7
|
|
|
(32.4
|
)%
|
|
1.0
|
|
|
1.4
|
|
|
(31.6
|
)%
|
Source: IHS Automotive
|
•
|
The Company recorded sales of
$733 million
and
$1,470 million
for the three and six month periods ended
June 30, 2019
, representing
a decrease
of
$25 million
and
$102 million
when compared with the same periods of
2018
.
|
•
|
Gross margin was
$70 million
or
9.5%
of sales and
$136 million
or
9.3%
of sales for the three and six month periods ended
June 30, 2019
, representing a
decrease
of
$34 million
or
4.2%
of sales and
$97 million
or
5.5%
of sales compared to the same period of
2018
.
|
•
|
Net income attributable to Visteon was
$7 million
and
$21 million
for the three and six month periods ended
June 30, 2019
, compared to net income of
$35 million
and
$100 million
for the same periods of
2018
.
|
•
|
As of
June 30, 2019
, total cash was
$438 million
, including
$3 million
of restricted cash, representing a
$29 million
decrease
as compared to
$467 million
as of
December 31, 2018
.
|
•
|
The Company
generated
$61 million
of cash from operating activities during the
six
months ended
June 30, 2019
, compared to cash
generated by
operations of
$126 million
during the same period of
2018
, representing a
$65 million
decrease
.
|
|
Sales
|
|
Cost of Sales
|
||||
|
(Dollars in Millions)
|
||||||
Three months ended June 30, 2018
|
$
|
758
|
|
|
$
|
(654
|
)
|
Volume, mix, and net new business
|
(3
|
)
|
|
(13
|
)
|
||
Currency
|
(21
|
)
|
|
20
|
|
||
VFAE consolidation
|
14
|
|
|
(12
|
)
|
||
Customer pricing and other
|
(15
|
)
|
|
—
|
|
||
Engineering costs, net
|
—
|
|
|
(11
|
)
|
||
Net cost performance
|
—
|
|
|
7
|
|
||
Three months ended June 30, 2019
|
$
|
733
|
|
|
$
|
(663
|
)
|
|
Three Months Ended June 30
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in Millions)
|
||||||
Gross engineering costs
|
$
|
(113
|
)
|
|
$
|
(104
|
)
|
Engineering recoveries
|
26
|
|
|
25
|
|
||
Engineering costs, net
|
$
|
(87
|
)
|
|
$
|
(79
|
)
|
|
Three Months Ended June 30
|
||||||||||
|
2019
|
|
2018
|
||||||||
|
(Dollars in Millions)
|
||||||||||
|
|
Percent of Sales
|
|
|
Percent of Sales
|
||||||
Sales
|
$
|
733
|
|
|
|
$
|
758
|
|
|
||
Cost of sales, excluding engineering costs
|
(576
|
)
|
78.6
|
%
|
|
(575
|
)
|
75.9
|
%
|
||
Engineering costs, net
|
(87
|
)
|
11.9
|
%
|
|
(79
|
)
|
10.4
|
%
|
||
Gross margin
|
$
|
70
|
|
9.5
|
%
|
|
$
|
104
|
|
13.7
|
%
|
|
Three Months Ended June 30
|
||||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
|
(Dollars in Millions)
|
||||||||||
Net income attributable to Visteon Corporation
|
$
|
7
|
|
|
$
|
35
|
|
|
$
|
(28
|
)
|
Depreciation and amortization
|
24
|
|
|
23
|
|
|
1
|
|
|||
Provision for income taxes
|
8
|
|
|
12
|
|
|
(4
|
)
|
|||
Non-cash, stock-based compensation expense
|
6
|
|
|
6
|
|
|
—
|
|
|||
Interest expense, net
|
2
|
|
|
2
|
|
|
—
|
|
|||
Net income attributable to non-controlling interests
|
1
|
|
|
1
|
|
|
—
|
|
|||
Restructuring expense
|
—
|
|
|
5
|
|
|
(5
|
)
|
|||
(Income) loss from discontinued operations, net of tax
|
—
|
|
|
1
|
|
|
(1
|
)
|
|||
Equity in net income of non-consolidated affiliates
|
(3
|
)
|
|
(4
|
)
|
|
1
|
|
|||
Other
|
1
|
|
|
—
|
|
|
1
|
|
|||
Adjusted EBITDA
|
$
|
46
|
|
|
$
|
81
|
|
|
$
|
(35
|
)
|
|
Sales
|
|
Cost of Sales
|
||||
|
(Dollars in Millions)
|
||||||
Six months ended June 30, 2018
|
$
|
1,572
|
|
|
$
|
(1,339
|
)
|
Volume, mix, and net new business
|
(53
|
)
|
|
6
|
|
||
Currency
|
(45
|
)
|
|
37
|
|
||
VFAE consolidation
|
26
|
|
|
(22
|
)
|
||
Customer pricing and other
|
(30
|
)
|
|
—
|
|
||
Engineering costs, net
|
—
|
|
|
(32
|
)
|
||
Net cost performance
|
—
|
|
|
16
|
|
||
Six months ended June 30, 2019
|
$
|
1,470
|
|
|
$
|
(1,334
|
)
|
|
Six Months Ended June 30
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in Millions)
|
||||||
Gross engineering costs
|
$
|
(221
|
)
|
|
$
|
(199
|
)
|
Engineering recoveries
|
49
|
|
|
52
|
|
||
Engineering costs, net
|
$
|
(172
|
)
|
|
$
|
(147
|
)
|
|
Six Months Ended June 30
|
||||||||||
|
2019
|
|
2018
|
||||||||
|
(Dollars in Millions)
|
||||||||||
|
|
Percent of Sales
|
|
|
Percent of Sales
|
||||||
Sales
|
$
|
1,470
|
|
|
|
$
|
1,572
|
|
|
||
Cost of sales, excluding engineering costs
|
(1,162
|
)
|
79.0
|
%
|
|
(1,192
|
)
|
75.8
|
%
|
||
Engineering costs, net
|
(172
|
)
|
11.7
|
%
|
|
(147
|
)
|
9.4
|
%
|
||
Gross margin
|
$
|
136
|
|
9.3
|
%
|
|
$
|
233
|
|
14.8
|
%
|
|
Six Months Ended June 30
|
||||||
|
2019
|
|
2018
|
||||
Pension financing benefits, net
|
$
|
5
|
|
|
$
|
6
|
|
Transformation initiatives
|
—
|
|
|
4
|
|
||
|
$
|
5
|
|
|
$
|
10
|
|
|
Six Months Ended June 30
|
||||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
|
(Dollars in Millions)
|
||||||||||
Net income attributable to Visteon Corporation
|
$
|
21
|
|
|
$
|
100
|
|
|
$
|
(79
|
)
|
Depreciation and amortization
|
49
|
|
|
45
|
|
|
4
|
|
|||
Non-cash, stock-based compensation expense
|
11
|
|
|
—
|
|
|
11
|
|
|||
Provision for income taxes
|
3
|
|
|
33
|
|
|
(30
|
)
|
|||
Interest expense, net
|
4
|
|
|
4
|
|
|
—
|
|
|||
Net income attributable to non-controlling interests
|
3
|
|
|
5
|
|
|
(2
|
)
|
|||
Restructuring expense
|
1
|
|
|
10
|
|
|
(9
|
)
|
|||
Income from discontinued operations, net of tax
|
—
|
|
|
(1
|
)
|
|
1
|
|
|||
Equity in net income of non-consolidated affiliates
|
(6
|
)
|
|
(7
|
)
|
|
1
|
|
|||
Other
|
1
|
|
|
(4
|
)
|
|
5
|
|
|||
Adjusted EBITDA
|
$
|
87
|
|
|
$
|
185
|
|
|
$
|
(98
|
)
|
•
|
Visteon’s ability to satisfy its future capital and liquidity requirements; Visteon’s ability to access the credit and capital markets at the times and in the amounts needed and on terms acceptable to Visteon; Visteon’s ability to comply with covenants applicable to it; and the continuation of acceptable supplier payment terms.
|
•
|
Visteon’s ability to satisfy its pension and other postretirement employee benefit obligations, and to retire outstanding debt and satisfy other contractual commitments, all at the levels and times planned by management.
|
•
|
Visteon’s ability to access funds generated by its foreign subsidiaries and joint ventures on a timely and cost-effective basis.
|
•
|
Changes in the operations (including products, product planning and part sourcing), financial condition, results of operations or market share of Visteon’s customers.
|
•
|
Changes in vehicle production volume of Visteon’s customers in the markets where it operates.
|
•
|
Increases in commodity costs or disruptions in the supply of commodities, including resins, copper, fuel and natural gas.
|
•
|
Visteon’s ability to generate cost savings to offset or exceed agreed-upon price reductions or price reductions to win additional business and, in general, improve its operating performance; to achieve the benefits of its restructuring actions; and to recover engineering and tooling costs and capital investments.
|
•
|
Visteon’s ability to compete favorably with automotive parts suppliers with lower cost structures and greater ability to rationalize operations; and to exit non-performing businesses on satisfactory terms, particularly due to limited flexibility under existing labor agreements.
|
•
|
Restrictions in labor contracts with unions that restrict Visteon’s ability to close plants, divest unprofitable, noncompetitive businesses, change local work rules and practices at a number of facilities and implement cost-saving measures.
|
•
|
The costs and timing of facility closures or dispositions, business or product realignments, or similar restructuring actions, including potential asset impairment or other charges related to the implementation of these actions or other adverse industry conditions and contingent liabilities.
|
•
|
Significant changes in the competitive environment in the major markets where Visteon procures materials, components or supplies or where its products are manufactured, distributed or sold.
|
•
|
Legal and administrative proceedings, investigations and claims, including shareholder class actions, inquiries by regulatory agencies, product liability, warranty, employee-related, environmental and safety claims and any recalls of products manufactured or sold by Visteon.
|
•
|
Changes in economic conditions, currency exchange rates, changes in foreign laws, regulations or trade policies or political stability in foreign countries where Visteon procures materials, components or supplies or where its products are manufactured, distributed or sold.
|
•
|
Shortages of materials or interruptions in transportation systems, labor strikes, work stoppages or other interruptions to or difficulties in the employment of labor in the major markets where Visteon purchases materials, components or supplies to manufacture its products or where its products are manufactured, distributed or sold.
|
•
|
Changes in laws, regulations, policies or other activities of governments, agencies and similar organizations, domestic and foreign, that may tax or otherwise increase the cost of, or otherwise affect, the manufacture, licensing, distribution, sale, ownership or use of Visteon’s products or assets.
|
•
|
Possible terrorist attacks or acts of war, which could exacerbate other risks such as slowed vehicle production, interruptions in the transportation system or fuel prices and supply.
|
•
|
The cyclical and seasonal nature of the automotive industry.
|
•
|
Visteon’s ability to comply with environmental, safety and other regulations applicable to it and any increase in the requirements, responsibilities and associated expenses and expenditures of these regulations.
|
•
|
Visteon’s ability to protect its intellectual property rights, and to respond to changes in technology and technological risks and to claims by others that Visteon infringes their intellectual property rights.
|
•
|
Visteon’s ability to quickly and adequately remediate control deficiencies in its internal control over financial reporting.
|
•
|
Other factors, risks and uncertainties detailed from time to time in Visteon’s Securities and Exchange Commission filings.
|
•
|
Caution should be taken not to place undue reliance on our forward-looking statements, which represent our view only as of the date of this presentation, and which we assume no obligation to update. Backlog does not represent firm orders or firm commitments from customers, but are based on various assumptions, including the timing and duration of product launches, vehicle production levels, customer cancellations, installation rates, customer price reductions and currency exchange rates.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Item 6.
|
Exhibits
|
Exhibit No.
|
|
Description
|
|
||
|
||
|
||
|
||
101.INS
|
|
XBRL Instance Document.**
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.**
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.**
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.**
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.**
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.**
|
*
|
Indicates that exhibit is a management contract or compensatory plan or arrangement.
|
**
|
Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files as Exhibit 101 hereto are deemed not filed or part of a registration
|
|
VISTEON CORPORATION
|
|
|
|
|
|
By:
|
/s/ Christian A. Garcia
|
|
|
Christian A. Garcia
|
|
|
Executive Vice President and Chief Financial Officer
|
1 Year Visteon Chart |
1 Month Visteon Chart |
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