For all of 2020, Visteon swung to a net loss of $56 million from net income of $70 million in 2019. Revenue fell 13.5 percent to $2.55 billion in 2020 as the pandemic impacted auto production.
A big contributor to the net loss was $76 million in restructuring expenses on the year, likely tied to plant operations during COVID-19-related shutdowns.
Still, the company grew its backlog of new business, reporting $1.4 billion in new business during the fourth quarter for a total of $4.6 billion in 2020. Visteon launched 11 new products in the quarter for a total 55 for the year.
Visteon expects sales to increase in 2021 and is forecasting full-year revenue in the range of $2.875 billion to $3.025 billion, the company said in the release. That’s below analysts’ estimates of $3.14 billion, according to Refinitiv IBES data
Shares of Visteon fell 12.8 percent to $119.07 in midday trading Thursday.
“In 2021, we anticipate sales will increase approximately 16 percent year-over-year, driven by the rebound in industry production volumes and continued growth over market due to new product launches,” CEO Sachin Lawande said in a statement. “Visteon is on schedule to launch more than 50 new products this year, which are projected to generate more than $7 billion … in lifetime revenue, and positions us well to achieve our 2023 targets.”
Reuters contributed to this report.
