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Brett Pynnonen: Visteon’s New Vice President and General Counsel

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Price movement 

Visteon (VC) has a market cap of $2.9 billion. It rose by 5.0%. It closed at $74.32 per share as of March 9, 2016. The price movement on a weekly, monthly, and YTD (year-to-date) basis is 4.0%, 22.8%, and -35.1%, respectively.

Currently, Visteon is trading 9.2% above its 20-day moving average, 10.1% below its 50-day moving average, and 26.3% below its 200-day moving average.

The Vanguard Small-Cap ETF (VB) invests 0.14% of its holdings in Visteon. VB tracks the CRSP US Small Cap Index. The market-cap-weighted index includes the bottom 2%–15% of the investable universe. VB’s YTD price movement was -3.5% as of March 8, 2016.

The market caps of Visteon’s competitors are as follows:

  • Delphi Automotive (DLPH) – $19.2 billion
  • Lear Corporation (LEA) – $8.1 billion
  • Harman International Industries (HAR) – $5.5 billion

Visteon elected Brett Pynnonen

Brett Pynnonen has been appointed as Visteon’s vice president and general counsel. He will be responsible for its global legal and compliance activities starting on March 14.

Pynnonen worked as the senior vice president, general counsel, and corporate secretary for Federal-Mogul Holdings Corporation. He was the general counsel and secretary of Covansys Corporation. He was also an attorney at Butzel Long in Detroit, Michigan.

Performance in fiscal 4Q15 and 2015

Visteon reported fiscal 4Q15 sales of $809.0 million—a rise of 2.7% compared to sales of $788.0 million in fiscal 4Q14. It reported a loss on divestiture of $105.0 million in fiscal 4Q15.

Its net income and EPS (earnings per share) rose to $21 million and $0.52, respectively, in fiscal 4Q15—compared to -$138 million and -$3.12, respectively, in fiscal 4Q14.

Fiscal 2015 results

In fiscal 2015, Visteon reported sales of $3,245.0 million—a rise of 25.5% YoY (year-over-year). It reported a loss on debt extinguishment of $5 million in fiscal 2015—compared to $23 million in fiscal 2014.

Its net income and EPS rose to $2,284.0 million and $52.63, respectively, in fiscal 2015—compared to -$295 million and -$6.44, respectively, in fiscal 2014.

Meanwhile, its accounts receivable and inventories fell by 5.5%, and 10.1%, respectively, in fiscal 2015. It reported cash and cash equivalents of $2,728.0 million in fiscal 2015—compared to $476.0 million in fiscal 2014. Its current ratio fell to 1.5x and debt-to-equity ratio rose to 2.9x in fiscal 2015—compared to 1.7x and 1.9x, respectively, in fiscal 2014.

Projections

The company made the following projections for fiscal 2016:

  • It expects Electronics Product Group sales of $3.2 billion.
  • It expects the adjusted earnings before interest, tax, depreciation, and amortization for the Electronics Product Group and Corporate segment to be $305 million–$335 million.
  • The company expects the adjusted free cash flow for the Electronics and Corporate segment to be $110 million–$150 million.

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