Visteon Corporation (VC) has reported a 231.58 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $63 million, or $1.91 a share in the quarter, compared with $19 million, or $0.49 a share for the same period last year. Revenue during the quarter went up marginally by 1 percent to $810 million from $802 million in the previous year period. Gross margin for the quarter expanded 109 basis points over the previous year period to 16.17 percent. Total expenses were 90.37 percent of quarterly revenues, down from 93.27 percent for the same period last year. This has led to an improvement of 290 basis points in operating margin to 9.63 percent.
However, the adjusted EBITDA for the quarter stood at $101 million compared with $89 million in the prior year period. At the same time, adjusted EBITDA margin improved 137 basis points in the quarter to 12.47 percent from 11.10 percent in the last year period.
"We had a strong first quarter, highlighted by record Electronics sales and adjusted EBITDA,” said Visteon president and chief executive officer Sachin Lawande. "We won significant new business that raised our order backlog to an all-time high, with noteworthy wins in infotainment and in Asia ��" including our third SmartCore™ cockpit domain controller win and our first in China. We also benefited from key product launches at the end of 2016 and in early 2017. Our continued focus on operational improvements helped drive adjusted EBITDA as a percent of sales to 12.5 percent."
For financial year 2017, Visteon Corporation forecasts revenue to be in the range of $3,100 million to $3,200 million. The company projects net income to be in the range of $155 million to $170 million.
Operating cash flow remains negative
Visteon Corporation has spent $10 million cash to meet operating activities during the quarter as against cash outgo of $58 million in the last year period. The company has spent $69 million cash to meet investing activities during the quarter as against cash inflow of $373 million in the last year period.
The company has spent $117 million cash to carry out financing activities during the quarter as against cash outgo of $2,248 million in the last year period.
Cash and cash equivalents stood at $688 million as on Mar. 31, 2017, down 14.32 percent or $115 million from $803 million on Mar. 31, 2016.
Working capital declines
Visteon Corporation has witnessed a decline in the working capital over the last year. It stood at $757 million as at Mar. 31, 2017, down 5.85 percent or $47 million from $804 million on Mar. 31, 2016. Current ratio was at 1.92 as on Mar. 31, 2017, up from 1.87 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 7 days for the quarter from 19 days for the last year period. Days sales outstanding were almost stable at 59 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 11 days for the quarter compared with 25 days for the previous year period. At the same time, days payable outstanding went down to 63 days for the quarter from 64 for the same period last year.
Debt moves up marginally
Visteon Corporation has witnessed an increase in total debt over the last one year. It stood at $396 million as on Mar. 31, 2017, up 3.66 percent or $14 million from $382 million on Mar. 31, 2016. Total debt was 17.69 percent of total assets as on Mar. 31, 2017, compared with 16.13 percent on Mar. 31, 2016. Debt to equity ratio was at 0.58 as on Mar. 31, 2017, up from 0.52 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 15.60 for the quarter from 27 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
