Visteon sales up 35% in 2022, $6 billion in new business and 45 new products launched
Visteon Corporation today reported its fourth quarter and full-year 2022 financial results that exceed its previous outlook. For the year ending December 31, 2022, the technology company reported net sales of $3,756 million, representing year-on-year growth of 35 percent.
Gross margin in 2022 was $368 million, and net income attributable to Visteon was $124 million. Adjusted EBITDA was $348 million in 2022 or 9.3% of sales, driven by higher sales while leveraging a lean cost base with modest increases in engineering and other fixed costs. Positive pricing mostly offset the incremental costs caused by the ongoing global semiconductor shortages and other supply chain challenges.
For the three months ending December 31, 2022, Visteon reported net sales of $1,064 million, representing a YoY growth of 35 percent. Sales performance was driven by the ramp up of recently launched products, favourable pricing, and customer vehicle production growth. Market out-performance in the quarter represents the 15th consecutive quarter of growth-over-market relative to customer weighted vehicle production.
New business includes follow-on SmartCore program with Indian OEM
The company won $6 billion of new business in 2022, leveraging its strong, diversified product portfolio that addresses key industry trends. Visteon launched 13 new products in the fourth quarter, resulting in 45 new products in total for 2022, which continues to build the foundation for the company’s sustainable market out-performance.
Visteon won significant new business throughout the year in all core product lines including conquest wins in SmartCore and advanced display programs with global customers. In the fourth quarter, the company continued its success in cockpit domain controllers, with a follow-on SmartCore program win with an Indian OEM. Additionally, Visteon won two high volume display programs, including a centre infotainment display on a future electric vehicle version of a flagship SUV for a North American OEM and a follow-on multi-display module win for a Japanese OEM.
Targeting sales between $3.95 billion and $4.15 billion in 2023
Commenting on the company’s performance in 2022 and the growth outlook for this year, Sachin Lawande, President and CEO, Visteon, said: “The Visteon team had a strong finish to round out a successful 2022, again achieving market out-performance along with 45 new program launches and $6 billion in new business wins. Through the continued momentum of our next-generation products and relentless execution, in 2023, we anticipate that we will continue to grow sales, expand margins, and increase adjusted free cash flow generation.”
Visteon’s full-year 2023 guidance anticipates sales in the range of $3.95 billion and $4.15 billion, Adjusted EBITDA in the range of $405 million and $445 million, and Adjusted Free Cash Flow in the range of $115 million and $165 million.
Visteon’s platforms leverage proven, scalable hardware and software solutions that enable the digital, electric and autonomous evolution of its global automotive clientele. Visteon products align with key industry trends and include digital instrument clusters, displays, Android-based infotainment systems, domain controllers, advanced driver assistance systems (ADAS) and electrification systems.