Visteon Corporation (VC) swung to a net profit for the quarter ended Jun. 30, 2015. The company has made a net profit of $2,208 million, or $ 49.73 a share in the quarter, against a net loss of $155 million, or $3.35 a share in the last year period. Revenue during the quarter surged 61.43 percent to $812 million from $503 million in the previous year period. Gross margin for the quarter expanded 86 basis points over the previous year period to 12.19 percent. Operating margin for the quarter period stood at positive 10.34 percent as compared to a negative 0.40 percent for the previous year period.
Operating income for the quarter was $84 million, compared with an operating loss of $2 million in the previous year period.
Operating cash flow improves significantly
Visteon Corporation has generated cash of $204 million from operating activities during the first half, up 60.63 percent or $77 million, when compared with the last year period. Cash flow from investing activities was $2,604 million for the first half as against cash outgo of $71 million in the last year period.
The company has spent $769 million cash to carry out financing activities during the first six months as against cash outgo of $336 million in the last year period.
Cash and cash equivalents stood at $2,857 million as on Jun. 30, 2015, up 104.22 percent or $1,458 million from $1,399 million on Jun. 30, 2014.
Working capital increases sharply
Visteon Corporation has recorded an increase in the working capital over the last year. It stood at $2,926 million as at Jun. 30, 2015, up 72.93 percent or $1,234 million from $1,692 million on Jun. 30, 2014. Current ratio was at 3.92 as on Jun. 30, 2015, up from 1.88 on Jun. 30, 2014.
Cash conversion cycle (CCC) has decreased to 44 days for the quarter from 76 days for the last year period. Days sales outstanding went down to 108 days for the quarter compared with 221 days for the same period last year.
Days inventory outstanding has decreased to 48 days for the quarter compared with 97 days for the previous year period. At the same time, days payable outstanding went down to 111 days for the quarter from 242 for the same period last year.
Debt comes down significantly
Visteon Corporation has recorded a decline in total debt over the last one year. It stood at $378 million as on Jun. 30, 2015, down 59.27 percent or $550 million from $928 million on Jun. 30, 2014. Total debt was 7.65 percent of total assets as on Jun. 30, 2015, compared with 16.43 percent on Jun. 30, 2014. Debt to equity ratio was at 0.13 as on Jun. 30, 2015, down from 0.42 as on Jun. 30, 2014. Interest coverage ratio improved to 12 for the quarter from 0.29 for the same period last year.
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