Visteon Q2 net income falls amid slowed EV production and decrease in China demand
Revenue fell to $969 million, down $45 million from the second quarter of last year.
'Net sales of $969 million came in higher than we had anticipated at the beginning of the quarter, driven by strong demand for our digital content products, particularly in North America and Europe,' CEO Sachin Lawande said during the company's call with analysts July 24. 'Despite the robust sales performance, lower [battery management systems] sales in the U.S. and the ongoing market dynamics in China resulted in sales slightly underperforming customer vehicle production.'
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Lawande said future sales will depend on how automakers react to the elimination of the U.S. EV tax credit, set to take effect Sept. 30.
Visteon was able to emerge relatively unscathed by tariff costs that have affected other companies, as the vast majority of its products are compliant with the United States-Mexico-Canada Agreement currently not subject to tariffs.
The company secured $2 billion in new business in the second quarter, bringing the year-to-date total to $3.9 billion. Visteon launched 21 products across eight automakers, with key products including a 25-inch display for the Audi Q3 platform in Europe and SmartCore domain controller programs for the Volvo EX30 electric crossover, Volvo construction vehicles and the Polestar 5.
Visteon shares closed up 0.83 percent on July 24.
Visteon, of Van Buren Township, Mich., ranks No. 59 on Automotive News' list of top 100 global suppliers, with $3.9 billion in parts sales to automakers in 2024.
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