Visteon Announces 2012 Financial Results

                   Visteon Announces 2012 Financial Results

PR Newswire

VAN BUREN TOWNSHIP, Mich., Feb. 28, 2013

VAN BUREN TOWNSHIP, Mich., Feb. 28, 2013 /PRNewswire/ --

  oFourth-quarter performance adds to a solid year

       oFull-year sales of $6.86 billion ($1.82 billion in fourth quarter)
       oAdjusted EBITDA of $628 million ($196 million in fourth quarter)
       o2012 net income attributable to Visteon of $100 million ($39 million
         in fourth quarter)

  oStrong cash performance

       oPositive full-year cash from operations of $239 million; full-year
         positive free cash flow
       oTotal cash of $845 million and total debt of $569 million

  oConsolidation of Visteon's climate business with Halla Climate Control
    largely complete
  oCompany repurchased $50 million in common shares under its $300 million
    repurchase program and redeemed for cash $50 million of its outstanding
    Senior Notes

Visteon Corporation (NYSE: VC) today announced full-year 2012 results,
reporting net income attributable to Visteon of $100 million, or $1.88 per
diluted share, an increase of $20 million compared with 2011. The results
benefited from a very strong fourth quarter, the strongest of 2012.

(Logo: http://photos.prnewswire.com/prnh/20001201/DEF008LOGO)

Visteon reported full-year sales of $6.86 billion, a decrease of $675 million
compared with 2011. Sales were lower due to the October 2011 deconsolidation
of Duckyang Industry Co. Ltd. and unfavorable currency. Full-year adjusted
EBITDA, a non-GAAP financial measure as defined below, was $628 million, a
decrease of $57 million compared with 2011. Free cash flow, a non-GAAP
financial measure as defined below, was a positive $10 million for the full
year 2012.

Visteon reported new business wins of $1.2 billion for 2012, including $750
million of incremental new wins and $450 million of rewin business. Visteon
has an expected backlog of approximately $800 million of consolidated net new
business for the period 2013-2015.

For the fourth quarter of 2012, Visteon reported net income attributable to
Visteon of $39 million, or 74 cents per diluted share, on sales of $1.82
billion. For the fourth quarter of 2011, Visteon's net loss attributable to
Visteon was $26 million, on sales of $1.73 billion. Adjusted EBITDA for the
fourth quarter of 2012 was $196 million, compared with $154 million in the
same period a year earlier. 

"We delivered a strong finish to a solid year that was highlighted by
operational improvements, an impressive level of new business wins, and
completion of the majority of the Halla-Visteon climate consolidation that has
long been desired by our customers," said Tim Leuliette, president and CEO.
"Visteon is a stronger company than a year ago – with a global, low-cost
manufacturing footprint; a solid cash position, a conservative debt profile;
and a strong business backlog. We continue to drive down administrative costs,
improve our operational structure and execute all facets of our strategy to
maximize value for customers and shareholders."

Full-Year 2013 Outlook

Visteon projects 2013 sales ranging from $7.3 billion to $7.5 billion,
adjusted EBITDA in the range of $620 million to $660 million, and adjusted
free cash flow, as defined below, of $100 million to $150 million. 

Other Developments

Visteon announced Jan. 14 that its board of directors increased the company's
current $100 million share repurchase program by an additional $200 million
during the next two years. This action creates a total of $250 million
available with which to repurchase shares, as the company has already
repurchased $50 million worth of its common shares since the initial share
repurchase program was authorized in August 2012. This creates a total share
repurchase program of $300 million.

On Jan. 31, Visteon and its longtime Korean affiliate Halla Climate Control
Corp. (HCC) announced they completed the contribution of the majority of
Visteon's automotive climate business to HCC. The transaction was divided into
two phases, with the second phase on track to be completed in the first half
of 2013. The total purchase price, before certain adjustments, is unchanged
from the $410 million announced by the companies on Jan. 11, subject to
certain adjustments.

On Jan. 29, Visteon completed the sale of its equity interest in a China-based
lighting joint venture, Visteon TYC Corporation, for $17 million.

On Dec. 14, 2012, Visteon redeemed for cash $50 million of its outstanding
6.75 percent Senior Notes due 2019, at a redemption price of 103 percent of
the principal amount of the notes, plus accrued and unpaid interest to the
redemption rate.

Fourth Quarter in Review

Sales of $1.82 billion for the fourth quarter of 2012 increased $96 million
from $1.73 billion for the same quarter a year earlier. Hyundai-Kia accounted
for approximately 34 percent of Visteon's fourth-quarter sales, with Ford
Motor Company representing 27 percent, Renault-Nissan 7 percent and PSA
Peugeot-Citroen 4 percent. On a regional basis, Asia accounted for 46 percent
of total product sales, up slightly from 44 percent for the same period last
year, while Europe represented 30 percent – down from 35 percent a year
earlier. North America represented 18 percent of total product sales for the
fourth quarter of 2012, compared with 15 percent during the same quarter last
year, and South America accounted for 6 percent, about even with the fourth
quarter of 2011.

Gross margin for the fourth quarter of 2012 was $198 million, compared with
$144 million a year earlier. The $54 million increase reflected the favorable
impact of customer agreements and increased volume. Selling, general and
administrative (SG&A) expense of $102 million for the fourth quarter of 2012
increased $6 million from a year earlier, primarily reflecting costs related
to pension settlements.

During the fourth quarter of 2012, Visteon recognized $43 million of equity in
the net income of non-consolidated affiliates, compared with $38 million in
the fourth quarter of 2011. Visteon's 50 percent-owned affiliate, Yanfeng
Visteon Automotive Trim Systems Co., Ltd. (YFV), and related affiliated
interests contributed $36 million in equity income.

For the fourth quarter of 2012, the company reported net income attributable
to Visteon of $39 million, or 74 cents per diluted share, including $35
million in restructuring costs. This compares with a net loss attributable to
Visteon of $26 million for the same period of 2011. Adjusted EBITDA for the
fourth quarter of 2012 was $196 million, compared with $154 million for the
same period a year earlier. On a year-over-year basis, increases in adjusted
EBITDA from the impacts of customer agreements, favorable volume, and equity
in the net income of non-consolidated affiliates, were partially offset by the
impact of the sale of the lighting business in the third quarter of 2012.

Fourth-Quarter Results By Segment

Climate sales increased by $161 million during the fourth quarter of 2012,
compared with the same quarter last year. Higher production volumes and net
new business increased sales by $162 million, primarily attributable to volume
increases in Asia and North America.

Electronics sales increased $11 million during the fourth quarter, compared
with the same period in 2011. Vehicle production volume increases in North
America, partially offset by the impact of weakened economic conditions in
Europe that reduced production volumes, resulted in a $25 million sales
increase. Unfavorable currency, driven by the weakening of the euro, decreased
sales by $10 million.

Interiors sales decreased during the quarter by $89 million, compared with the
fourth quarter of 2011. Sales decreased $74 million due to the deconsolidation
of Duckyang. Sales were further decreased by lower vehicle production volumes,
primarily in Europe, of $17 million. Unfavorable currency, primarily related
to the euro, decreased sales by an additional $17 million.

Full-Year 2012 Results

For the full year of 2012, the company reported net income attributable to
Visteon of $100 million, or $1.88 per diluted share. This compares with net
income attributable to Visteon of $80 million or $1.54 per diluted share for
the same period of 2011. Adjusted EBITDA for the full year of 2012 was $628
million, compared with $685 million for the same period a year earlier.

Cash and Debt Balances

As of Dec. 31, 2012, Visteon had global cash balances totaling $845 million,
including restricted cash of $20 million and total debt of $569 million.

For full year 2012, Visteon generated $239 million of cash from operations.
Capital expenditures of $229 million in 2012 were $29 million lower than in
2011. For 2012, free cash flow, as defined below, was positive $10 million,
compared with negative $83 million for 2011.

For the fourth quarter of 2012, Visteon generated $76 million of cash from
operations, compared with $120 million in the same period a year earlier.
Capital expenditures in the fourth quarter of 2012 were $83 million, up from
$73 million in the fourth quarter of 2011. Free cash flow was a use of $7
million in the fourth quarter of 2012, compared with a contribution of $47
million in the fourth quarter of 2011.

About Visteon

Visteon is a leading global automotive supplier delivering value for vehicle
manufacturers and shareholders through a family of businesses including:

  oHalla Visteon Climate Control, majority-owned by Visteon and the world's
    second-largest global supplier of automotive climate components and
    systems.
  oVisteon Electronics, a leading supplier of audio/infotainment, driver
    information, center stack electronics and feature control modules.
  oVisteon Interiors, a global provider of vehicle cockpit modules,
    instrument panels, consoles and door trim modules.
  oYanfeng Visteon Automotive Trim Systems Co., Ltd., a successful
    non-consolidated China-based partnership between Visteon and Shanghai
    Automotive Industry Corporation's automotive components group, Huayu
    Automotive Systems.

Through this family of enterprises, Visteon designs, engineers and
manufactures innovative components and systems for virtually every vehicle
manufacturer worldwide, and these businesses generated more than $12 billion
in sales in 2011, including unconsolidated operations. With corporate offices
in Van Buren Township, Mich. (U.S.); Shanghai, China; and Chelmsford, UK;
Visteon has facilities in 29 countries and employs through its various
businesses, including unconsolidated operations, approximately 55,000 people.
Learn more at www.visteon.com.

Conference Call and Presentation

Today, Thursday, Feb. 28, at 8 a.m. ET, the company will host a conference
call for the investment community to discuss the quarter's results and other
related items. The conference call is available to the general public via a
live audio webcast. The dial-in numbers to participate in the call are:

U.S./Canada: 888-452-7086
Outside U.S./Canada: 706-643-3752

(Call approximately 10 minutes before the start of the conference.)

The conference call and live audio webcast, along with the financial results
release, presentation material and other supplemental information, will be
accessible through Visteon's website at www.visteon.com.

A replay of the conference call will be available through the company's
website or by dialing 855-859-2056 (toll-free from the U.S. and Canada) or
404-537-3406 (international). The conference ID for the phone replay is
95204331. The phone replay will be available for one week following the
conference call.

Forward-looking Information

This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are not guarantees of future results and conditions but rather are
subject to various factors, risks and uncertainties that could cause our
actual results to differ materially from those expressed in these
forward-looking statements, including, but not limited to: (1) conditions
within the automotive industry, including (i) the automotive vehicle
production volumes and schedules of our customers, (ii) the financial
condition of our customers and the effects of any restructuring or
reorganization plans that may be undertaken by our customers or suppliers,
including work stoppages, and (iii) possible disruptions in the supply of
commodities to us or our customers due to financial distress, work stoppages,
natural disasters or civil unrest; (2) our ability to satisfy future capital
and liquidity requirements; including our ability to access the credit and
capital markets at the times and in the amounts needed and on terms acceptable
to us; our ability to comply with financial and other covenants in our credit
agreements; and the continuation of acceptable supplier payment terms; (3) our
ability to satisfy pension and other post-employment benefit obligations; (4)
our ability to access funds generated by foreign subsidiaries and joint
ventures on a timely and cost-effective basis; (5) our ability to execute on
our transformational plans and cost-reduction initiatives in the amounts and
on the timing contemplated; (6) general economic conditions, including changes
in interest rates, currency exchange rates and fuel prices; (7) the timing and
expenses related to internal restructurings, employee reductions, acquisitions
or dispositions and the effect of pension and other post-employment benefit
obligations; (8) increases in raw material and energy costs and our ability to
offset or recover these costs, increases in our warranty, product liability
and recall costs or the outcome of legal or regulatory proceedings to which we
are or may become a party; and (9) those factors identified in our filings
with the SEC (including our Annual Report on Form 10-K for the fiscal year
ended Dec. 31, 2012).Caution should be taken not to place undue reliance on
our forward-looking statements, which represent our view only as of the date
of this release, and which we assume no obligation to update. The financial
results presented herein are preliminary and unaudited; final financial
results will be included in the company's Annual Report on Form 10-K for the
fiscal year ended Dec. 31, 2012. New business wins and rewins do not represent
firm orders or firm commitments from customers, but are based on various
assumptions, including the timing and duration of product launches, vehicle
production levels, customer price reductions and currency exchange rates.

Use of Non-GAAP Financial Information

This press release contains information about Visteon's financial results
which is not presented in accordance with accounting principles generally
accepted in the United States ("GAAP"). Such non-GAAP financial measures are
reconciled to their closest GAAP financial measures at the end of this press
release. The provision of these comparable GAAP financial measures for 2013 is
not intended to indicate that Visteon is explicitly or implicitly providing
projections on those GAAP financial measures, and actual results for such
measures are likely to vary from those presented. The reconciliations include
all information reasonably available to the company at the date of this press
release and the adjustments that management can reasonably predict.



VISTEON CORPORATION AND SUBSIDIARIES



CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in Millions, Except Per Share Data)

(Unaudited)
                                      Three Months Ended   Twelve Months Ended
                                      December 31          December 31
                                      2012      2011       2012       2011
Sales                                 $ 1,823   $ 1,727    $  6,857   $ 7,532
Cost of sales                         1,625     1,583      6,268      6,914
Gross margin                          198       144        589        618
Selling, general and administrative   102       96         369        387
expenses
Equity in net income of               43        38         226        168
non-consolidated affiliates
Restructuring expenses                35        6          79         24
Interest expense, net                 7         6          35         27
Other expense (income), net           18        (24)       41         11
Income before income taxes            79        98         291        337
Provision for income taxes            19        40         121        127
Net income from continuing operations 60        58         170        210
Loss from discontinued operations,    —         (64)       (3)        (56)
net of tax
Net income (loss)                     60        (6)        167        154
Net income attributable to            21        20         67         74
non-controlling interests
Net income (loss) attributable to     $ 39      $ (26)     $  100     $ 80
Visteon Corporation
Per share data:
Basic earnings (loss) per share
Continuing operations                 $ 0.74    $ 0.75     $  1.95    $ 2.65
Discontinued operations               —         (1.26)     (0.06)     (1.09)
Basic earnings (loss) per share
attributable to                       $ 0.74    $ (0.51)   $  1.89    $ 1.56

Visteon Corporation
Diluted earnings (loss) per share
Continuing operations                 $ 0.74    $ 0.75     $  1.93    $ 2.62
Discontinued operations               —         (1.26)     (0.05)     (1.08)
Diluted earnings (loss) per share
attributable to                       $ 0.74    $ (0.51)   $  1.88    $ 1.54

Visteon Corporation
Average shares outstanding (in
millions)
Basic                                 52.7      50.7       52.9       51.2
Diluted                               53.0      50.7       53.3       52.0
Comprehensive income:
Comprehensive (loss) income           $ (35)    $ (44)     $  128     $ 66
Comprehensive (loss) income           $ (68)    $ (69)     $  35      $ 5
attributable to Visteon Corporation



VISTEON CORPORATION AND SUBSIDIARIES



CONSOLIDATED BALANCE SHEETS

(Dollars in Millions)

(Unaudited)
                                                            December 31
                                                            2012      2011
ASSETS
Cash and equivalents                                        $ 825     $ 723
Restricted cash                                             20        23
Accounts receivable, net                                    1,162     1,071
Inventories, net                                            385       381
Other current assets                                        271       291
Total current assets                                        2,663     2,489
Property and equipment, net                                 1,326     1,412
Equity in net assets of non-consolidated affiliates         756       644
Intangible assets, net                                      332       353
Other non-current assets                                    79        71
Total assets                                                $ 5,156   $ 4,969
LIABILITIES AND EQUITY
Short-term debt, including current portion of long-term     $ 96      $ 87
debt
Accounts payable                                            1,027     1,010
Accrued employee liabilities                                175       189
Other current liabilities                                   254       267
Total current liabilities                                   1,552     1,553
Long-term debt                                              473       512
Employee benefits                                           571       495
Deferred tax liabilities                                    181       187
Other non-current liabilities                               238       225
Stockholders' equity
Preferred stock                                             —         —
Common stock                                                1         1
Stock warrants                                              10        13
Additional paid-in capital                                  1,269     1,165
Retained earnings                                           266       166
Accumulated other comprehensive loss                        (90)      (25)
Treasury stock                                              (71)      (13)
Total Visteon Corporation stockholders' equity              1,385     1,307
Non-controlling interests                                   756       690
Total equity                                                2,141     1,997
Total liabilities and equity                                $ 5,156   $ 4,969



VISTEON CORPORATION AND SUBSIDIARIES



CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in Millions)

(Unaudited)
                                    Three Months Ended    Twelve Months Ended
                                    December 31           December 31
                                    2012         2011     2012         2011
Operating Activities
Net income (loss)                   $      60    $  (6)   $      167   $  154
Adjustments to reconcile net income
(loss) to net cash

provided from operating activities:
Depreciation and amortization       63           68       259          316
Asset impairments                   5            66       24           66
Equity in net income of
non-consolidated affiliates, net    (15)         (34)     (122)        (122)

of dividends remitted
Stock-based compensation            6            9        25           39
Other non-cash items                4            (2)      7            20
Changes in assets and liabilities:
Accounts receivable                 20           21       (38)         (110)
Inventories                         28           17       (26)         (33)
Accounts payable                    (67)         (6)      (26)         (25)
Other assets and other liabilities  (28)         (13)     (31)         (130)
Net cash provided from operating    76           120      239          175
activities
Investing Activities
Capital expenditures                (83)         (73)     (229)        (258)
Joint venture deconsolidation       —            (52)     —            (52)
Proceeds from asset sales and       3            3        191          14
business divestitures
Other                               —            (22)     (2)          (35)
Net cash used by investing          (80)         (144)    (40)         (331)
activities
Financing Activities
Short-term debt, net                3            6        5            17
Cash restriction, net               —            (1)      —            51
Proceeds from issuance of debt, net 19           —        831          503
of issuance costs
Principal payments on debt          —            —        (824)        (513)
Repurchase of long-term notes       (52)         —        (52)         —
Repurchase of common stock          (50)         —        (50)         —
Payment of Rights Offering fees     —            —        —            (33)
Dividends paidto non-controlling   (4)          (2)      (27)         (31)
interests
Other                               2            —        2            3
Net cash (used by) provided from    (82)         3        (115)        (3)
financing activities
Effect of exchange rate changes on  10           (14)     18           (23)
cash and equivalents
Net (decrease) increase in cash and (76)         (35)     102          (182)
equivalents
Cash and equivalents at beginning   901          758      723          905
of period
Cash and equivalents at end of      $      825   $  723   $      825   $  723
period



VISTEON CORPORATION AND SUBSIDIARIES



RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Unaudited, Dollars in Millions)
In this press release the Company has provided information regarding certain
non-GAAP financial measures including "Adjusted EBITDA," "Free cash flow," and
"Adjusted free cash flow." Such non-GAAP financial measures are reconciled to
their closest GAAP financial measure in the schedules below.
Adjusted EBITDA: Adjusted EBITDA is presented as a supplemental measure of the
Company's performance that management believes is useful to investors because
the excluded items may vary significantly in timing or amounts and/or may
obscure trends useful in evaluating and comparing the Company's continuing
operating activities across reporting periods. The Company defines Adjusted
EBITDA as net income attributable to Visteon, plus net interest expense,
provision for income taxes and depreciation and amortization, as further
adjusted to eliminate the impact of asset impairments, gains or losses on
divestitures, net restructuring expenses and other reimbursable costs, certain
non-recurring employee charges and benefits, reorganization items, and other
non-operating gains and losses. Because not all companies use identical
calculations this presentation of Adjusted EBITDA may not be comparable to
other similarly titled measures of other companies.
                       Three Months Ended     Twelve Months Ended    Estimated
                       December 31            December 31            Full Year
                       2012         2011      2012         2011      2013
Adjusted EBITDA        $      196   $  154    $      628   $  685    $620 -
                                                                     $660
Interest expense, net  7            6         35           27        40
Provision for income   19           40        121          127       120 - 140
taxes
Depreciation and       63           63        258          295       275
amortization
 Restructuring      35           6         79           24        75 - 125
expenses
 Other expense      18           (24)      41           11        25
(income), net
 Equity investment  —            —         (63)         —         —
gain
 Other
non-operating costs,   15           17        27           30        10
net
 Non-cash
equity-based           —            —         —            —         20
compensation expense *
 Discontinued       —            72        30           91        —
operations
Net income (loss)                                                    ($15) -
attributable to        $      39    $  (26)   $      100   $  80     $95
Visteon Corporation
* Adjusted EBITDA redefined for 2013 to exclude non-cash equity-based
compensation expense.
Adjusted EBITDA is not a recognized term under GAAP and does not purport to be
a substitute for net income as an indicator of operating performance or cash
flows from operating activities as a measure of liquidity. Adjusted EBITDA has
limitations as an analytical tool and is not intended to be a measure of cash
flow available for management's discretionary use, as it does not consider
certain cash requirements such as interest payments, tax payments and debt
service requirements. In addition, the Company uses Adjusted EBITDA (i) as a
factor in incentive compensation decisions, (ii) to evaluate the effectiveness
of the Company's business strategies, and (iii) the Company's credit
agreements use measures similar to Adjusted EBITDA to measure compliance with
certain covenants.
Free Cash Flow and Adjusted Free Cash Flow: Free cash flow and adjusted free
cash are presented as supplemental measures of the Company's liquidity that
management believes is useful to investors in analyzing the Company's ability
to service and repay its debt. The Company defines free cash flow as cash flow
provided from operating activities less capital expenditures. The Company
defines adjusted free cash flow as cash flow provided from operating
activities less capital expenditures, as further adjusted for restructuring
payments net of customer recoveries, transformation and reorganization-related
payments. Because not all companies use identical calculations, this
presentation of free cash flow and adjusted free cash may not be comparable to
other similarly titled measures of other companies.
                       Three Months Ended     Twelve Months Ended    Estimated
                       December 31            December 31            Full Year
                       2012         2011      2012         2011      2013
Cash provided from     $      76    $  120    $      239   $  175    $175 -
operating activities                                                 $275
Capital expenditures   (83)         (73)      (229)        (258)     (250)
Free cash flow         $      (7)   $  47     $      10    $  (83)   ($75) -
                                                                     $25
Restructuring          3            4         46           18        $125 -
payments, net                                                        $75
Transformation and
reorganization-related 11           8         46           67        50
payments
Adjusted free cash     $      7     $  59     $      102   $  2      $100 -
flow                                                                 $150
Free cash flow and adjusted free cash flow are not recognized terms under GAAP
and do not purport to be a substitute for cash flows from operating activities
as a measure of liquidity. Free cash flow and adjusted free cash flow have
limitations as analytical tools and do not reflect cash used to service debt
and do not reflect funds available for investment or other discretionary uses.
In addition, the Company uses free cash flow and adjusted free cash (i) as
factors in incentive compensation decisions, and (ii) for planning and
forecasting future periods.

SOURCE Visteon Corporation

Website: http://www.visteon.com
Contact: Media, Jim Fisher. +1-734-710-5557, jfishe89@visteon.com; Investors,
Scott Deitz, +1-734-710-2603, sdeitz@visteon.com