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Visteon’s Net Income Plunges 78%
Electronics supplier Visteon Corp. says its net income in the first quarter plummeted 78% to $14 million as revenue dropped 10% to $737 million.
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Electronics supplier Visteon Corp. says its net income in the first quarter plummeted 78% to $14 million as revenue dropped 10% to $737 million.
Visteon’s pretax earnings shrank to $11 million in January-March. The company’s gross margin plunged nearly 50% to $66 million.
The suburban Detroit supplier blames the expected slump on shrinking sales, unfavorable exchange rates, new product launch delays and the cost of customer design changes. The company notes that it also won $1.4 billion in new business, one-third of it related to battery management and other electric car programs.
The company predicts its troubles will be “largely resolved” by the end of the third quarter. Still, the company predicts its full-year sales will be flat at about $3 billion.
The company lowered its guidance for full-year EBITDA (adjusted earnings before interest, taxes, depreciation and amortization) in 2019 to about $255 million. That target compares with earlier guidance of at least $289 million and last year’s total of $330 million.
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