Visteon Corp. said Thursday that its second-quarter earnings fell into the red after revenue was cut nearly in half as the coronavirus pandemic continues to bludgeon many auto suppliers.
The cockpit electronics supplier's adjusted second-quarter earnings before interest, taxes and other adjustments dropped to a loss of $3 million from a gain of $46 million during the same quarter last year. The Van Buren Township-based company reported a $45 million net loss compared with a $7 million gain in 2019.
Total revenue fell to $371 million, compared with $733 million in the second quarter last year.
"Adjusted EBITDA was impacted by lower sales volume, primarily due to COVID-19 and partially offset by strong cost-reduction actions," the company said in a statement.
"Despite the challenging environment, we launched 21 new products during the first half of the year, including all-digital clusters, a new Android-based infotainment system and large displays," Visteon CEO Sachin Lawande said in the statement.
The company said it generated $1.7 billion in new business in the first half of 2020, down from $3.2 billion in the first half of 2019.
In a call with analysts Thursday morning, Lawande said the proactive actions Visteon took to preserve cash are helping the company to be stronger and more competitive.
The company said it has $759 million of available cash and no "significant" near-term debt maturities.
"This gives us ample liquidity to weather the crisis," Lawande said during the call.
Visteon (NASDQA: VC) shares fell 4.9 percent to $72.04 in early trading on Wall Street.
Visteon ranks No. 69 on the Automotive News list of the top 100 global suppliers, with worldwide parts sales to automakers of $2.94 billion in its 2019 fiscal year.
The Link LonkJuly 30, 2020 at 10:32PM
https://www.crainsdetroit.com/auto-suppliers/visteon-q2-earnings-go-red-after-revenue-cut-half
Visteon Q2 earnings go into the red after revenue cut in half - Crain's Detroit Business
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