Visteon Corporation (VC) has reported a 90.48 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $2 million, or $0.06 a share in the quarter, compared with $21 million, or $0.52 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $61 million, or $1.82 a share compared with $48 million or $1.18 a share, a year ago. Revenue during the quarter went up marginally by 0.87 percent to $816 million from $809 million in the previous year period. Gross margin for the quarter expanded 172 basis points over the previous year period to 15.81 percent. Operating margin for the quarter period stood at positive 3.19 percent as compared to a negative 21.76 percent for the previous year period.
"We finished the year very strong and delivered exceptional financial results in 2016, a year in which we transformed Visteon into a leading player in the cockpit electronics segment," said Visteon President and chief executive officer Sachin Lawande. "We returned $2.2 billion in capital to investors during the year, while making significant progress on our strategic priorities, including winning $5.4 billion in new business primarily in China and Western Europe and executing a record 59 product launches."
Visteon Corp forecasts revenue to be in the range of $3,100 million to $3,200 million for fiscal year 2017.
Operating cash flow drops significantly
Visteon Corp has generated cash of $120 million from operating activities during the year, down 64.50 percent or $218 million, when compared with the last year. Cash flow from investing activities was $302 million for the year, down 87.19 percent or $2,056 million, when compared with the last year. It has incurred net capital expenditure of $58 million on net basis during the year, down 38.95 percent or $37 million from year ago.
The company has spent $2,262 million cash to carry out financing activities during the year as against cash outgo of $774 million in the last year period.
Cash and cash equivalents stood at $878 million as on Dec. 31, 2016, down 67.82 percent or $1,850 million from $2,728 million on Dec. 31, 2015.
Working capital drops significantly
Visteon Corp has witnessed a decline in the working capital over the last year. It stood at $797 million as at Dec. 31, 2016, down 37.78 percent or $484 million from $1,281 million on Dec. 31, 2015. Current ratio was at 1.87 as on Dec. 31, 2016, up from 1.46 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 7 days for the quarter from 107 days for the last year period. Days sales outstanding were almost stable at 28 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 10 days for the quarter compared with 12 days for the previous year period. At the same time, days payable outstanding went down to 32 days for the quarter from 148 for the same period last year.
Debt remains almost stable
Total debt of Visteon Corp remained almost stable for the quarter at $382 million, when compared with the last year period. Total debt was 16.10 percent of total assets as on Dec. 31, 2016, compared with 8.18 percent on Dec. 31, 2015. Debt to equity ratio was at 0.53 as on Dec. 31, 2016, up from 0.32 as on Dec. 31, 2015.
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