Visteon Corp. said Thursday that its second-quarter earnings fell into the red after revenue was cut nearly in half as the coronavirus pandemic continues to bludgeon many auto suppliers.
The cockpit electronics supplier’s adjusted second-quarter earnings before interest, taxes and other adjustments dropped to a loss of $3 million from a gain of $46 million during the same quarter last year. The company reported a $45 million net loss compared with a $7 million gain in 2019.
Total revenue fell to $371 million, compared with $733 million in the second quarter last year.
“Adjusted EBITDA was impacted by lower sales volume, primarily due to COVID-19 and partially offset by strong cost-reduction actions,” the company said in a statement.
“Despite the challenging environment, we launched 21 new products during the first half of the year, including all-digital clusters, a new Android-based infotainment system and large displays,” Visteon CEO Sachin Lawande said in the statement.
The company said it generated $1.7 billion in new business in the first half of 2020, down from $3.2 billion in the first half of 2019.
In a call with analysts Thursday morning, Lawande said the proactive actions Visteon took to preserve cash are helping the company to be stronger and more competitive.
Visteon shares fell 4.9 percent to $72.04 in early trading on Wall Street.
The company said it has $759 million of available cash and no “significant” near-term debt maturities.
“This gives us ample liquidity to weather the crisis,” Lawande said during the call.
Visteon, based in suburban Detroit, ranks No. 69 on the Automotive News list of the top 100 global suppliers, with worldwide parts sales to automakers of $2.94 billion in its 2019 fiscal year.