Visteon Q1 net income rises 3.2 percent on China gains

Visteon Corp. said its first-quarter net income rose 3.2 percent to $65 million, as strong gains and product launches in China offset a dip in North American sales.First-quarter net income included a $17 million gain related to a legal settlement, partially offset by $4 million in restructuring costs and $5 million in income taxes, the parts and electronics supplier said in a statement. For the quarter, adjusted earnings, excluding interest, taxes and one-time costs rose 3 percent to $104 million.Despite a 3 percent decrease in vehicle production, sales in China for the quarter rose 24 percent year over year to $98 million, CEO Sachin Lawande said Thursday during a conference call.Total revenue rose 0.5 percent to $814 million. The company's backlog, or cumulative remaining life-of-program booked sales, stands at $20.1 billion as of March 31, up from $19.4 billion at the end of 2017.New businessVisteon gained $1.6 billion in lifetime revenue in new business from global automakers for the quarter, up 7 percent year over year.The company was awarded an additional vehicle by Daimler that will go into production in 2020, said Lawande, after the launch of the SmartCore cockpit domain controller in the Mercedes-Benz A class."I'm also happy to inform you that Geely Auto, the fastest growing vehicle manufacturer in China, has selected SmartCore technology for all cockpit electronics functions for its new electric vehicle platform launching in 2020," Lawande said.PartnershipHe said the supplier will be partnering with China's Alibaba Group to bring cloud services to a vehicle for an undisclosed Japanese automaker."The vehicle is already launched in the market and there is a lot of competitive pressure on the OEM to be able to offer such services to their consumers," Lawande said.Visteon, of Van Buren Township, Mich., ranks No. 67 on Automotive News' list of the top 100 global automotive parts suppliers, with $3.16 billion in sales to automakers in 2016.The company received a 2018 Automotive News PACE Award for its SmartCore technology.

Visteon Q1 net income rises 3.2 percent on China gains

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