Visteon Corporation (NYSE:VC) today announced third-quarter 2016 results, reporting sales of $770 million and net income attributable to Visteon of $28 million, or $0.81 per diluted share. Adjusted EBITDA, a non-GAAP financial measure as defined below, was $75 million for the third quarter, compared with $65 million in the same period last year. Adjusted net income, a non-GAAP financial measure as defined below, was $38 million for the third quarter, or $1.10 per diluted share. Average diluted shares outstanding during the third quarter totaled 34.4 million.

In the first three quarters of 2016, global vehicle manufacturers awarded Visteon new business wins amounting to $4.1 billion of lifetime revenue. Third-quarter wins totaled $1.3 billion. The ongoing backlog, defined as cumulative remaining life-of-program booked sales, was approximately $16.2 billion as of Sept. 30, 2016.

“During the quarter, our engineering and manufacturing execution was very strong, and we continue to improve margins and free cash flow despite lower than expected production volumes,” said Visteon President and CEO Sachin Lawande. “We also continue to win new business at a record pace. Our third-quarter wins included our second major award for our SmartCore™ cockpit domain controller technology for a 2020 European vehicle program, as well as a fully reconfigurable instrument cluster that extends this technology to a broader range of vehicles.”

Lawande added: “Our third-quarter results demonstrate our ability to increase margins while focusing on delivering long-term growth. As a result of our strong performance, we are increasing the low end of our full-year guidance for Electronics Product Group adjusted EBITDA and adjusted free cash flow.”

Third Quarter in Review

Visteon reported third-quarter sales of $770 million, a decrease of $38 million compared with the same quarter last year. Electronics Product Group sales totaled $749 million in the third quarter of 2016, a decrease of $22 million from the third quarter last year. The decrease is primarily related to lower production volumes and customer pricing partially offset by new business. Other operations sales totaled $21 million in the third quarter of 2016, a decrease of $16 million from the third quarter last year, primarily related to the sale of an Interiors European facility in 2015.

For the Electronics Product Group, on a regional basis, Asia accounted for 41 percent of sales, Europe 29 percent, North America 28 percent, and South America 2 percent.

Visteon gross margin for the third quarter of 2016 was $105 million or 13.6 percent of sales, 0.6 points higher than the prior year. Selling, general and administrative expenses were $53 million, or 6.9 percent of sales, for the third quarter, compared with $59 million, or 7.3 percent of sales, a year earlier.

For the third quarter of 2016, the company reported net income attributable to Visteon of $28 million, or earnings per share of $0.81 per diluted share, compared with $5 million and $0.12 for the same period in 2015. The third quarter improved by $23 million compared with the same period last year, primarily reflecting increased net income related to the Electronics Product Group and discontinued operations.

Third-quarter Visteon net income includes $13 million of impairment-related charges, and $5 million of restructuring expense, partially offset by income from discontinued operations of $7 million and $1 million in net gain on the sale of non-consolidated affiliates. Adjusted net income, which excludes these costs, was $38 million, or $1.10 per share.

Adjusted EBITDA for the Electronics Product Group was $75 million for the third quarter, compared with $67 million for the same quarter last year. The improvement primarily reflected cost efficiencies. Adjusted EBITDA for Other Operations was break-even, $2 million higher than adjusted EBITDA for the third quarter of 2015.

Cash and Debt Balances

As of Sept. 30, 2016, Visteon had global cash balances totaling $854 million. Total debt as of Sept. 30 was $371 million.

For the third quarter of 2016, Visteon generated $24 million of cash from operations, compared with $70 million in the same period a year earlier. Capital expenditures for the third quarter of 2016 were $19 million, compared with $29 million during the third quarter of 2015. Adjusted free cash flow was $25 million in the quarter, compared with $77 million in the third quarter of 2015. Adjusted free cash flow decreased year over year, reflecting timing of trade working capital and higher cash taxes.

Visteon generated $33 million of cash from operations related to the Electronics Product Group in the third quarter. Capital expenditures for the Electronics Product Group totaled $18 million and adjusted free cash flow was $23 million.

Share Repurchase

During the first quarter of 2016, Visteon entered into an accelerated stock buyback program with a third-party financial institution to purchase shares of common stock for an aggregate purchase price of $395 million. Under the program, Visteon paid the financial institution $395 million and received an initial delivery of 4,370,678 shares of common stock using a reference price of $72.30. The program was concluded in October 2016 and the company received an additional 1,211,979 shares. In total, Visteon purchased 5,582,657 shares at an average price of $70.75 under this program.

Full-Year 2016 Outlook

Visteon increased the low-point for full-year 2016 guidance for adjusted EBITDA and adjusted free cash flow. Visteon’s Electronics Product Group sales guidance is $3.1 billion. Adjusted EBITDA for the Electronics Product Group is projected in the range of $325 million to $335 million. Adjusted free cash flow, as defined below, for the Electronics Product Group is projected in the range of $125 million to $150 million.

About Visteon

Visteon is a global company that designs, engineers and manufactures innovative cockpit electronics products and connected car solutions for most of the world’s major vehicle manufacturers. Visteon is a leading provider of instrument clusters, head-up displays, information displays, infotainment, audio systems, and telematics solutions; its brands include Lightscape®, OpenAir® and SmartCore™. Visteon also supplies embedded multimedia and smartphone connectivity software solutions to the global automotive industry. Headquartered in Van Buren Township, Michigan, Visteon has approximately 10,000 employees at more than 40 facilities in 18 countries. Visteon had sales of $3.25 billion in 2015. Learn more at www.visteon.com.