Q2 2023 Visteon Corporation Earnings Call

August 3, 2023

Good morning, I'm, Brian Wendling, Vice President of Investor Relations and Treasurer welcome to our earnings call for the second quarter of 2023.

There are still a few analog and power chips that are in short supply in VI chip supply is expected to continuously improve going forward. It will still be lingering shortages for the foreseeable future.

In summary, the company performed well and delivered another quarter of growth that outperformed our customers' vehicle production.

Adjusted EBITDA was $90 million for the quarter and included the exceptional recall related charge of $15 million and negative impact of 150 basis points to EBITDA margin as such and discussed earlier.

Excluding this charge, our EBITDA improved by $26 million or 140 basis points versus prior year.

I'll run rate EBITDA margin, therefore remains above the 10% Mark.

Adjusted EBITDA benefited from higher base sales and improved operational efficiencies.

This was partially offset by unfavorable exchange impacts as well as increases in net engineering and SG&A expenses as we continue to strategically invest to support our growth.

In the quarter, we secured additional recovery agreements with customers that were retroactive to the beginning of the year.

As a result, the net impact in the second quarter from semiconductor and other material cost leakage was relatively neutral and in line with prior year.

Adjusted free cash flow was $32 million in the quarter, resulting from our strong operational performance.

Sachin highlighted we began to execute on our share repurchase authorization announced in March with $30 million in share repurchases at an average price of just under 142.

We ended the second quarter with a net cash position of $111 million in line with our targeted net cash number.

Overall, our results in the first half provide a strong foundation for the second half of the year, we remain on track to achieve our targets for sales growth margin expansion and cash flow generation this year.

Turning to page 13.

Sales were $983 million for the quarter, when excluding customer recoveries base sales were slightly above $900 million representing growth of $195 million or 27% compared to the prior year. This increase in base sales was primarily.

Really driven by higher customer production volumes and our continued market outperformance fueled by recent product launches.

Visteon customer vehicle production volumes increased 12% from the prior year driven by improved semiconductor supply supporting strong customer demand in both North America and Europe .

Visteon customer production in China also improved year over year, but this was primarily due to the lower production levels that we experienced in Q2 last year as a result of the Covid lockdowns.

We delivered another quarter of double digit market outperformance, thanks to the ongoing demand for our digital cockpit products and recent launch activities large cluster programs across all regions as well as various smart card programs in Europe , and Asia continued to drive sales growth and outperformance.

Customer recoveries, which are illustrated in the dotted boxes declined year over year by 40% to approximately $75 million driven mostly by decreasing the recoveries of open market purchases.

We expect open market purchases and therefore customer recoveries of these specific purchases to remain low for the remainder of the year.

This is a welcome development for both <unk> and our customers and it reduces the total input costs for semiconductor parts and reinforces our return to a more stable semiconductor environment.

Recoveries related to higher costs from our traditional tier two suppliers are expected to remain stable over the rest of the year.

As a reminder, recoveries although bucket. It is pricing are pass through nature, increasing sales and neutral for adjusted EBITDA, but dilute margin percentages.

Adjusted EBITDA was $19 million for the quarter and included a 15 million exceptional recall charge. Excluding this charge adjusted EBITDA increased by $26 million versus prior year or 140 basis points, primarily driven by higher base sales operational efficiencies.

And a few million dollars of net positive one timers.

This was partially offset by negative foreign exchange impacts higher net engineering and increased SG&A.

Net engineering was higher compared to the prior year due to the timing of engineering recoveries and the investments, we're making it an innovative technology around the software defined vehicle and electrification.

Adjusted SG&A was higher mostly due to personal costs.

Continue to invest in our team to support our strong growth, but equally we will leverage our cost structure as we scale up.

Our net engineering and SG&A costs as a percentage of sales for the first half of the year were 6% and four 5% respectively.

Despite the exceptional charge, we took in the second quarter, we delivered solid financial results that were in line with our expectations. We continue to demonstrate our ability to overcome lingering supply chain challenges, while delivering on the high number of program launches, which support our future growth.

Turning to page 14.

We continue to maintain one of the strongest balance sheets in the industry our balance sheet supports our growth and provides the flexibility needed to pursue our capital allocation priorities we.

We ended the quarter with total cash of $459 million and a net cash position of $111 million.

At our recent Investor Day, we announced a $300 million share repurchase program that runs to the end of 2026 in.

In Q2, we repurchased $30 million at an average price of just under $142 per share.

We intend to continue utilizing the share repurchase program authorization and will remain opportunistic in our execution.

We generated $32 million of adjusted free cash flow in the quarter in.

In the first half adjusted free cash flow was an outflow of $5 million in line with our expectations and normal seasonality.

Trade and other working capital items were an outflow in the first half, which we anticipated and which we expect will partially unwind throughout the remainder of the year.

Cash taxes were higher than prior year due to the cash payments related to increasing profitability in some jurisdictions also in line with our expectations and contemplated in our guidance.

Interest payments remained low and primarily related to our $350 million term loan that matures in 2027.

We had our first amortization payment of 4 million in the second quarter of 2023.

These modest amortization payments will continue on a quarterly basis through the maturity of the facility.

Capex was $51 million in the first half we expect capex to increase in the back half of the year, reflecting our ongoing investment in manufacturing and electrification to support our growth. We continue to expect capex of $130 million for the full year.

Turning to page 15.

Based on our performance in the first half of the year and our expectations for the second half we are maintaining our full year 2023 guidance for.

<unk> sales were maintaining our guidance range of $3 95 to $4 15 billion.

Since we initially provided guidance back in February the industry produce more vehicles in the first half than anticipated as improved semiconductor supply supported pent up demand, particularly from strong European order books and inventory restocking in North America.

Aggregate industry production growth in the first half needs to be viewed at a more granular level as much of the total increase is related to BYD in China and native EV Oems that are not currently in our customer base. We expect these Oems to increase production further in the second half.

Yes.

Based on our strong first half production in Europe , and North America, as well as the ongoing customer mix headwinds in China, We anticipate visteon customer production will be lower in the second half relative to the first half of the year.

Lower visteon customer production will be more than offset by our growth of our markets expected to be in the mid teens in the second half.

This will be driven by product launches that are contributing to our sales growth as well as an increase of our electrification programs as compared to the first half, though at a slower rate than our OEM customers initially anticipated.

We are maintaining our adjusted EBITDA range of $405 million to $445 million to continue to track towards the midpoint of the range. We expect the flow through of higher sales to be the most significant contributor to our EBITDA growth versus the first half of the year with SG&A and net engineering.

The remaining flat compared to H one at.

Additionally, we continue to expect to meet our semiconductor and other raw materials cost leakage target of negative $20 million for the full year.

Our adjusted free cash flow range of $115 million to $165 million confirms our assumptions for the second half, including our adjusted EBITDA range of moderate working capital unwind and higher Capex spending.

On the right side of the slide you can see the 2026 targets. We set earlier this year at our Investor day.

With $4 billion of new business wins, and continued strong customer demand across our product lines. We made a step in the right direction in the first half.

Turning to page 16.

<unk> remains a compelling long term investment opportunity, we have positioned the company for top line growth margin expansion and free cash flow generation.

We will continue to return cash to shareholders, while maintaining a strong balance sheet, which provides significant flexibility as Sachin mentioned, our solid start of the year gives us confidence in our 2023 guidance and we are on track to achieve these targets as well as our 2026 targets. Thank you for your time today I would like to.

Now to open the call for your questions.

Thank you.

At this time, if you would like to ask an audio question. Please press star and then the number one on your telephone keypad.

That is star and the number one and we will pause for just a moment to compile the Q&A roster.

Yeah.

We will take our first question from Tom Narayan with RBC capital markets. Your line is open.

Hi, Thanks, guys.

One point of clarification I guess.

Understanding the 2023 guidance. So yes industry wide production is coming in better than expected, but I guess the points you made where that maybe you guys specifically arent seeing it a lot of it is coming from China or Oems not in your customer base is that the primary reason you would say why.

Despite improved production volumes.

Not raising your guidance or.

Or were there other factors that contribute as well.

Good good morning, Tom This is such an let me first take that question and then ill invite Karen also.

I'll add some more color, but first of all what I would like to say is that we are very pleased with how our revenues developed.

In Q1 and Q2.

We look at it on a.

Half basis and year over year.

Base sales, excluding recoveries grew a very robust 20 plus percent year over year.

Now when you look at the.

The rest of the year the outlook.

In terms of global vehicle production.

Half of this year.

More or less flat in terms of global vehicle production for the first half.

Now within that to Visteon customer mix is slightly negative.

Despite that say.

Sales.

At the midpoint of our guidance would imply at least is evident of half or 8% up over up growth.

So pretty robust performance and when you factor into it that our BMS.

Ramp up has been slightly.

Lower than our initial expectations.

Still results in a very robust double digit growth over market for the full year of 2023 from a revenue viewpoint. Therefore, we don't really see this as a <unk>.

Somehow missing.

The benefits of the of the vehicle production I think we are doing very well and similarly on.

EBITDA performance.

Even by our operational execution, but I'll, let sharon speak more to that.

Yes indeed.

Good.

First half.

Versus second half a lot of growth in terms of sales.

And that will allow us in fact to be at the midpoint of that guidance in EBITDA terms.

In terms of how we executed in Q2 as we've said in our prepared remarks, very strong quarter sales wise, but as well EBITDA wise in fact, we are slightly better than what we had anticipated when you exclude the one time charge that we took and that does two things for us. It gives us a good run rate as we go into.

<unk>.

Third in the fourth quarter and it will allow us as well to absorb that one time charge that we had.

In Q2, so overall.

A good sales performance in the first half, but as well.

Improvement in the second half will allow us to be essentially at the midpoint of the EBITDA guidance that we had.

Despite the one time recall that we had.

Thanks, Yes, that's a good point on the one timer if I forgot about that.

The second question I had was.

When you guys Scott the European luxury Oems.

Integrated battery management system.

Just curious how these how these work and apologies. If this is a naive question, but are these typically like exclusive to <unk> and I know competition. In this category is as high or EV component just curious like what the main factors are to winning these types of businesses is it mostly just price.

Or or is it something else just just curious thanks, yes, yes, yes. So very good question and so the first thing I would say is to answer your question directly it is.

Exclusive.

So it's going to be only visteon.

Providing this integrated solution.

And.

We had previously stated on our Investor day that our strategy for EV followed in the clinics is based on technology driven differentiation.

We're really interested in those opportunities theyre using.

Using our technology capabilities to consult specific challenges and this win what we refer to as a smart junction box is a great example of this type of a product.

Combination of BMS as well as battery junction box.

Ports some of the most advanced features required for this next generation vehicles, including us being able to switch from 400 volt battery used with 800 volt operation.

Advanced diagnostics and safety.

Plus in a very compact and lightweight package. The first two features really come from the BMS side.

And the reason we won this business is on account of our capabilities and proven expertise in BMS.

So again, we are very pleased that this is a quick turnaround from when we first talked about the junction box into Smart junction box to landing this business with it Barry.

Credible.

Capable OEM.

I am sure will lead to further opportunities in these types of more and more integrated solutions.

Now just to be also clear.

<unk> business is on a new platform that the Oems developing for the luxury.

Vehicles, but it also gives us the potential to then take it into the other platforms that performance and value.

And that they have in their portfolio.

Very significant opportunity and.

Opportunity, that's going to have a very long tail.

<unk> brings us into this auto electronics business that we had not been present in previously so very excited about it.

That's great. Thanks, a lot and it sounds like a big win for you guys. Thank you.

Thank you.

We will take our next question from James Picariello with BNP Paribas. Your line is open.

Hi, guys I just wanted to hit on the.

The retail charge again so.

This is not something that's going to get.

Covered.

Bayou from.

Yes.

Some are related supplier right. So this is <unk>.

Additional $15 million charge for the year that wasn't previously contemplated in your guidance. So I suppose my question is without that impact.

Yes.

Your ability to maintain your guidance here right I mean, there is a 40 basis point hit.

Yes to your margins.

You are in effect raising right affect raising by about 40 basis points of margin.

Trajectory for this year is that a fair way to think about this this retail charge and the implied.

Prevalent in your underlying business.

Absolutely James I would say, it's absolutely the right way to look at it without this charge we would have increased.

EBITDA guidance, not our sales guidance, but our EBITDA guidance and it's largely because our run rate is slightly better already at the end of each one.

Going into the second half so in terms of EBITDA, we are slightly above 10% of EBITDA margin when you exclude the charge.

And we are contemplating being close to 11% in the second half and that allows us to be at the $425 million.

EBITDA for the full year, so youre absolutely right, we would have raised guidance on the EBITDA side.

If we hadn't had the charge.

Understood and then Ken can we just revisit.

The semi supply.

Situation that might have some persisting.

<unk> that need to be addressed I, just wanted to make sure I fully understand what's what's happening on the semi sourcing the chipset.

I'll comment that was pure thank you sure.

So in general I would characterize semi supplies as a continuously improving and the number of parts and critical short supply situation.

As reducing every quarter.

But we should not necessarily think.

<unk>.

The issue is going to get to a point yet this year.

We will have no shortages, so we need to be clear about that.

So our redesign activity.

I've talked about on previous earnings calls is really helping us reached.

Rich the gap between supply and the customer demand.

This quarter in Q2.

Became closer to meeting 100% of customer demand than any other quarter.

That's an improvement one thing that we did highlight.

This issue with a microcontroller is used.

A few digital clusters at Visteon.

Had a disruption in supply I want to also be clear in <unk>.

Communicating that disruption was.

Issue was addressed by the supplier and so production is back up but it created an air bubble that we felt in Q2 and we may have some lingering effects of that in Q3 and Q4. So what we have decided to be prudent as to undertake some redesigns not to put ourselves at any risk.

Especially because we see continued growth of our digital cluster business, even extending into next year, So our approach and being proactive and quick about Redesigns I think is pretty.

Unique in our ability to.

Captured more of the customer demand.

This is the same thing we are doing in this particular case. So my expectation is for second half supply.

Peru modestly we can expect that the industries from a semiconductor supply chain perspective improved 10% to 15%.

Year over year, and that's going to be the case this year as well and our demand is little bit higher than that so.

The redesign also very key in terms of us being able to address the gaps. So we feel pretty good. We're on track with what we have stated earlier and I would add as well that all these improvements translate into much less open market purchases.

We've seen a fairly sizable decline from Q4 levels.

Q1 of this year and even Q2.

This quarter we.

Less than $10 million off.

Open market purchases recovery so it's.

It's a good indicator of the improvement that we're seeing in the in supply.

Thanks.

And we'll take our next question from Ron <unk> with Guggenheim Securities. Your line is open.

Great job on the name.

Good morning, and.

Thanks for taking my questions Andrew.

I appreciate the color on the.

The power electronics business and the ability to move beyond the luxury designation that that OEM overtime.

Just remind us on the the junction box and maybe other power electronics.

Does that have a similar CPD shift like we see with with BMS with based on the size of the battery pack or is that a bit more agnostic.

Yes, I would say the junction box CPB has determined or by the 400 slash 800 volt capability.

Unlike in the case of the BMS, which is driven more by the size of the battery the size determines the number of sales.

We need to be monitored and thats what drives the CPB on the Pms in the case of the junction box.

400 to 800 volt transition and being able to switch drives higher CTV.

Okay. That's helpful color.

And.

With GM announcing the extension of life on the Chevy bolt.

Is there a benefit to visteon, there or I guess, Conversely, if the bolt takes a larger share of the overall GM electrification pie going forward would that be a headwind to your <unk>.

<unk> BMS assumptions.

Yes, so the way to think about our business with GM is really driven by the.

Production and uptake of the Altium batteries, so in the near term right.

Veteran management systems with them. This is directly dependent on how they do with respect to the OPM battery usage.

So it is hard for us to say.

Exactly what that order.

Battery configuration might look like if it is LTM and part of what we supply clearly that will be a benefit to us.

Having said that.

All of our discussions with the customer indicate a steady ramp up of the.

Battery management product from us to them.

We will continue.

This year and into next year, so has been delayed a little bit in terms of.

The timing as we discussed in our prepared remarks.

By no means we think that if this is something that.

<unk>.

Is coming lower than our initial expectations.

Fully expected to kick up in terms of demand and production as we go forward.

Thank you and maybe just sneak one quick.

Question on Dms your second customer launch.

Based on the timeline when that one that's expected in the markets that will be operating.

Yes, so we will start to ramp our production later this year and I believe the customer production of the vehicle stocks.

In the first quarter of next year so.

Pretty pretty close in terms of UN.

We will go into production I should also mention that there are several vehicles.

That will be launched fairly quickly after the initial launch so pretty excited about that ramp up next year.

Thanks, I'll hop back in the queue I appreciate it.

Thank you.

We will take our next question from Mark Delaney with Goldman Sachs. Your line is open.

Yes, good morning, and thank you very much for taking my questions first relative to the China domestic Oems you mentioned your exposure there and having lost any.

Sales into some of these China domestic Oems what steps if any as visteon I'm, taking to better address those customers and how long may it take that's correct right.

Yes.

You might recollect, we have previously said that we have already done a lot of work in terms of achieving a better balance between domestic and global Oems in China.

Figures to go with that.

But.

Distribution was 80 20 global Oems for domestic I believe last year. It was more 60 40, so coming closer to us.

Ideal.

50, 50 shared that we would like to see so what actions have we taken we have really increased engagements with Oems in.

China domestic Oems that we believe.

Have a good performance. This includes customers that JV that we have talked about before but also GMC.

And we continue to ramp up engagement with them. So.

We're very optimistic about especially our cockpit domain controller protocols.

And China also are looking at.

It displays.

Differentiated product from a site so lot more to come based on some of the engagements that we currently have.

That's helpful and then.

Thinking about some of the technology development trends underway in the industry. Some of the Oems have discussed using gesture and voice controls.

Added part of some of these future platforms.

Visteon is at the intersection of a lot of these are.

Key tech trend and so just hoping to better understand what visteon may be seen and to the extent interactions with the vehicles moves beyond touch.

Is that an opportunity for visteon.

Yes, so we don't see a lot of discipline.

Really part of many of these technology initiatives different customers and to be honest.

The success has been somewhat mixed in terms of the customer feedback, especially with gestures.

<unk> on the site.

A greater level of success, especially with the introduction of <unk>.

Smart systems like Alexa and its type in the industry. So we remain very close to the key partners that.

Whether it is <unk>.

Or Alexa.

Nuance.

In terms of.

Why is technology and with gestures and other technologies, we are participating and working very closely with.

Oems with their partners there. So the main thing is.

All of these technologies are driving a higher need for computing resources within the vehicle and therefore it is contributing to.

The content increase if you see not just at the luxury entered the market, but also coming into more of the mass market vehicles. So we think all of these types of initiatives are good for us.

Business for Visteon.

Thank you I'll pass it on.

Thank you.

We will take our next question from <unk> Patel with Wolfe Research. Your line is open.

Hey, Thanks, so much for taking my question.

Just thinking about it as we look out the next few years.

<unk> previously talked about Dms business growing to about 600 million of revenue by 2026.

I'm curious as you.

As you map that out.

How have you taken into account any <unk>.

Conservatism around some of the volume expectations.

Underpinned.

That kind of revenue and similarly with this award that you just won.

Power electronics, obviously, there's a lot of concern in the market regarding.

Legacy automakers and some of the volume aspirations that they have with regards to the east.

Yes.

Very good question for you so.

But is that the $600 million.

Or.

We have talked about previously.

I'd like to.

Reiterate that we have.

Already lowered.

All right.

Number of.

Our customers are telling us in terms of their demand sources.

I'm ready.

A number that we have taken down.

<unk> all of these concerns.

We have about the ramp up and the speed of ramp up.

I do believe that over time that we will see higher levels of sales, but I think it is prudent for now to be at.

They are more conservative than we would normally be especially this is considering that new.

Or.

Our customers and the <unk>.

Industry at large so we're comfortable with that.

Went to six target of $600 million.

Is there an upside to some of these customers too.

It would especially if they come anywhere close to their own stated objectives, yes that is an upside for that now.

Now the specific Vms wins.

We talked about it actually launches.

In the second half of 2026, so it's not going to be material to the 2026 targets.

Usually important.

Forward to continue.

Growth in this category however, the other.

BMS extensions that we have.

<unk> also.

First half.

I would say about a third of our BMS electrification Vince at the first half.

Accounted but.

At this junction box on Pms product the two thirds of it is extension of our existing BMS business.

That will help.

In terms of mix.

Midterm targets.

Either achieving or hopefully exceeding it.

Great.

Okay understood.

And and maybe Jerome just a quick question on.

How to think about engineering and SG&A.

For the second half.

I apologize.

If you commented on this already but just trying to think about that.

And as a percent of revenue.

Yes, good point so we've.

Very high level H, two will look very similar to H, one for engineering net engineering as well as for SG&A. So.

In percentage of sales.

6% for H, one four net engineering.

And four 5% for.

SG&A.

The dollar amount will stay stable in the second half thoughts as volume ramps.

We'll have an improvement in the percentage.

Both net engineering as well as SG&A and we are essentially tracking in line with what we had in mind when we first issued guidance back.

Sure.

Okay, great. Thank you.

Thank you.

And we will take our next question from Dan Levy with Barclays. Your line is open.

Okay.

Hi, good morning, Thank you for taking.

Taking the question.

I know you noted you talk to maybe one of the slower ramp.

On the EV front, just wondering as far as BMS.

If the ramp is slower.

How should we think about the impact on large meeting.

How much upfront R&D has there been.

And if it's a slower ramp of revenue what is the impact on margins from that.

Yes, so I would not say that.

Anything material.

A lot of engineering that is limited.

Specific product suite.

Part of this ramp up is already offered in the past.

And so the engineering related to electrification.

Patients.

As for future business.

And also.

Company levels.

Numbers are still relatively reminder, and hyperlocal.

Any significant impact.

Great. Thank you and then.

A couple of follow up.

A question on on semiconductors.

And.

And your sourcing.

I know you've talked about redesign.

Hopefully architectures at least from the sourcing helping to mitigate some of the pressures.

And I think <unk> had sort of a very.

<unk>.

Circumstances, you actually have seen very limited leakage.

Hi, Kevin.

With a bit of a contrast to what we see.

Hum.

Okay.

Suppliers broadly on materials.

Maybe give us some type of.

We've seen that over the last couple of years the leakage.

Generally minimal what has driven that and to what extent the redesign played into both how expensive are those.

How much effort is there, what's the and how much more opportunity.

Yes, so good question and so let me try to.

Okay.

The bigger picture of semiconductors, and how the last couple of years.

Played out so.

One factor that I think we need to also keep in mind as spend.

Supply was was pretty constrained in the industry.

It was really are working hard to produce vehicles.

Our box.

We supply to the Oems.

One of the more desired and a set of components.

The Oems.

If we could switch to lift the content right.

<unk>.

They were going to build as much content as they possibly could.

So that helped us.

Our customers to ensure that we were able to get the supply that we needed whether it was from open market.

It was from <unk>.

Suppliers themselves being the surcharges, which also helped us recover.

No charges from.

No.

Customers. So point number one is the nature of the products that we offer.

Sure.

Very much industry needs to be competitive.

Our customers to drive down margins so thats.

It's something that should not be.

Probably.

As for the shuffle here the second was.

Redesign it.

Bye Bye redesigns.

We're able to reduce the spend on these open market.

Yes.

Purchases.

Faster than the competition.

I can tell you anecdotally.

Some of our customers support us.

Execution in terms of managing this risk and the proactive.

Sort of approach that we took.

It was highly appreciated.

There are many other challenges to deal with we were one of the ones there.

Get that under control.

Earlier.

Our competitors so that is in general that operational focus execution focus.

And then the engagement.

Semiconductor suppliers.

Proactively.

All.

All of those contributed to us being able to take over.

Quicker.

Leakage as it Sir.

Thank you that's helpful color.

Thank you we will take our next question from Luke Young with Baird. Your line is open.

Good morning, Thanks for taking my questions first question I have is just on the growth in the back half of the year I think you had.

<unk> been expecting the second half to be launch heavy and I'm. Just wondering if there's any metrics you can provide to help animate that in terms of the expected 15% outgrowth and then specifically I'm wondering just your assumption around the ramp of wireless BMS. Just if you could maybe just put a finer point on how much you've de risked that for a potential slow.

Ram Thank you.

Yes, yes.

So.

Points too.

So first of all we've talked about our new.

Model launches, meaning.

Alex previously launched.

It's being launched in new vehicle models, obviously, these new vehicle margins generate incremental revenue for Visteon.

We are providing that information and you saw that in the first half.

It was above our 70 vehicle model launches.

Which is a terrific performance in terms of just.

Execution.

However, we have also previously indicated that more of a new program launches and the way we differentiate program with new models New program launches are launches that have not offered before.

New products and.

New program launches, but mostly second half loaded compared to other years and so.

About two thirds of this new program launches are yet to happen hasn't happened in the second half. So we will have a continuation of new vehicle model launches and on top of that we will have some very.

A meaningful new program launches, which is what is the reason why we're seeing this year coupled with improvement.

Improvement in revenues despite the greenfield.

Underlying vehicle production at our customers not growing so that's the.

Dynamic data.

In terms of the.

BMS expectations of what we have.

<unk> done to de risk it as we have.

Our expectations and our outlook.

Quite significantly in terms of what our customers have provided as the signals that capacity.

Obviously, we hope that.

Perhaps.

Q2 2023 Visteon Corporation Earnings Call

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