Visteon Corporation Provides Earnings Guidance for the Full Year of 2017; Revises Earnings Guidance for the Year 2016
January 10, 2017 at 03:10 pm EST
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Visteon Corporation provided earnings guidance for the full year of 2017. For the period the company expects revenues to be between $3.1 billion to $3.2 billion, adjusted EBITDA to increase to $355 million to $370 million, translating to a margin of about 11.5% and adjusted cash flow of $165 million to $180 million. The company continue to improve margin profile while generating strong cash flows. The company's long-term adjusted EBITDA margin objective from 12% to 14% by 2021 by continuing to invest in future technologies. If apply this margin level to the $4.7 billion revenues expect to generate in 2021. This would translate to almost a doubling of adjusted EBITDA in the next 5 years.
Due to strong performance in fourth quarter, particularly in Asia Pacific, the company raising guidance for the full year. Previously, it guided to an adjusted EBITDA between $325 million to $335 million and it is raising the guidance to $340 million to $345 million. At this level, the company currently project margins to reach 11% in 2016, which is a new milestone for the company. The company also raising adjusted cash flow guidance to $155 million to $160 million.
Visteon Corporation is a global automotive technology company serving the mobility industry. The Company's platforms leverage hardware and software solutions that enable the digital, electric, and autonomous evolution of the Company's global automotive customers, including BMW, Ford, Geely, General Motors, Honda, Jaguar/Land Rover, Mahindra, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Renault, Stellantis, Tata, Toyota, and Volkswagen. The Company operates through the Electronics segment, which provides vehicle cockpit electronics products to customers, including digital instrument clusters, domain controllers with integrated advanced driver assistance systems (ADAS) displays, Android-based infotainment systems, and battery management systems. The Company designs and manufactures automotive electronics and connected car solutions, such as instrument clusters, information displays, infotainment, battery management systems, high-voltage power electronics, telematics solutions and others.