• Solid financial performance
  • Sales of $812 million
  • Adjusted EBITDA of $60 million; net income of $2.2 billion
  • Cash from operations of $31 million
• Secured $660 million of annualized new business awards in first half of 2015
• Completed sale of ownership interest in Halla Visteon Climate Control
• Company begins $500 million accelerated share repurchase program as part of plan to return $2.5 billion-$2.75 billion of cash to shareholders by June 2016
• Reduced term loan by $246 million to $350 million outstanding
• Reaffirmed full-year 2015 guidance for Electronics and Corporate adjusted EBITDA and adjusted free cash flow

Visteon Corporation (NYSE: VC) today announced second-quarter 2015 results, reporting sales of $812 million and net income attributable to Visteon of $2.2 billion, or $49.73  per diluted share, including a significant gain related to the sale of Visteon's interest in Halla Visteon Climate Control Corp. (HVCC). As a result of the previously announced divestiture of the majority of its climate business, Visteon reclassified a significant portion of climate results to discontinued operations, and recast prior periods accordingly.

Adjusted EBITDA, a non-GAAP financial measure as defined below, was $60 million for the second quarter, compared with $29 million in the same period last year.

"Visteon continued its momentum in the second quarter with solid performance in sales, adjusted EBITDA and growth," said Sachin Lawande, president and CEO, who joined Visteon on June 29. "As a result of our strong performance in the first half, we have reaffirmed full-year guidance."

Lawande added: "With the sale of our 70 percent ownership interest in Halla Visteon Climate Control on June 9, Visteon is now focused on driving value for customers and shareholders as a technology-focused enterprise dedicated to vehicle cockpit electronics and the connected car – one of the fastest-growing segments in the automotive industry. As a result of that sale, we expect to deliver significant returns to our shareholders over the coming months through a series of actions including stock buybacks and special distributions."

Cash from operating activities in the second quarter, including discontinued operations, totaled $31 million, consistent with $31 million for the same period in 2014. Adjusted free cash flow, a non-GAAP financial measure as defined below, was $33 million for the second quarter.

Second Quarter in Review

Visteon reported second-quarter sales of $812 million, an increase of $309 million compared with the same quarter last year. An additional $933 million of sales was classified as discontinued operations.

Electronics sales totaled $780 million, an increase of $337 million from the second quarter last year. The increase is primarily attributable to the acquisition of the global automotive electronics business of Johnson Controls Inc., effective July 1, 2014. For the Electronics Product Group, on a regional basis, Asia accounted for 37 percent of sales, Europe 33 percent, North America 28 percent, and South America 2 percent.

Gross margin for the second quarter of 2015 was $99 million, compared with $57 million a year earlier. Selling, general and administrative (SG&A) expenses were $65 million, or 8.0 percent of sales, for the second quarter, compared with $48 million, or 9.5 percent of sales, a year earlier. Year-over-year results for gross margin and SG&A were both impacted by the Johnson Controls electronics acquisition. The $42 million increase in gross margin also included higher sales volume and new business impacts, along with cost efficiencies, partially offset by the impact of unfavorable currency.

Adjusted EBITDA of $60 million for the second quarter of 2015, compared with $29 million for the same quarter last year, primarily reflected the impact of the Johnson Controls electronics acquisition, favorable volume and new business, and positive cost performance, partially offset by currency impacts.

For the second quarter of 2015, the company reported net income attributable to Visteon of $2,208 million, or earnings per share of $49.73 per diluted share. Second-quarter net income included $2,159 million related to income from discontinued operations, net of tax; a $62 million gain from the disposition of its ownership in Yanfeng Visteon Jinqiao Automotive Trim Systems Company, Limited; and $30 million of restructuring, transformation integration and related costs. Adjusted net income, which excludes these gains and costs, was $17 million, or $0.38 per diluted share.

Sale of Ownership Interest in Halla Visteon Climate Control

On June 9, Visteon completed the previously announced sale of its approximate 70 percent ownership interest in Halla Visteon Climate Control Corp. (HVCC) to an affiliate of Hahn & Company – a South Korea-based private equity company – and Hankook Tire Co. Ltd., following the approval of Visteon's shareholders at a special meeting May 18.

Appointment of Sachin Lawande as President and CEO

On June 10, Visteon announced the appointment of Sachin Lawande as president and CEO, effective June 29, succeeding Timothy D. Leuliette. Lawande also joined Visteon's board of directors. Lawande is an accomplished automotive electronics leader who had been with Harman International Industries since 2005, most recently as president of the infotainment division, the company's largest with nearly $3 billion in annual sales.

Share Repurchase Program

On June 16, Visteon entered into an Accelerated Stock Buyback (ASB) with a third party to purchase shares of its common stock for an initial payment of $500 million. The company entered into the ASB agreement as part of its previously announced capital return program.

Term Loan Reduction

In the second quarter, Visteon reduced its term loan by $246 million to $300 million outstanding.

Cash and Debt Balances

As of June 30, 2015, Visteon had global cash balances totaling $2,866 million . Total debt as of June 30 was $378 million .