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Visteon's First-Time Financial Reporting Shows Solid Start

20 May 1998

Visteon's First-Time Financial Reporting Shows Solid Start In Global Automotive Supplier Industry

      Visteon Earns $189 Million in First Quarter 1998 -- Up 30 Percent

    DEARBORN, Mich., May 20 -- Visteon Automotive Systems, an
enterprise of Ford Motor Company , announced today for the first time
its separate financial results that demonstrate competitive strength on a
global scale.
    Visteon's net income for the first quarter of 1998 increased to
$189 million, up 30 percent from $146 million in the first quarter of 1997.
The improvement reflected favorable cost, and volume and mix performance,
offset partially by costs associated with establishing Visteon's marketing
organization.  First quarter 1998 revenue was $4.4 billion, a 5.4 percent
increase from the first quarter of 1997.
    For the 1997 calendar year, Visteon's net income was $518 million, a
53 percent increase from estimated 1996 results.  Revenue was $17.2 billion, a
6 percent increase from 1996 revenues.  A key driver of improved profitability
were cost reductions exceeding $400 million in 1997.  Eighty-one percent of
Visteon's 1997 revenue was generated in North America, 15 percent in Europe,
and 4 percent in South America and Asia.
    "Visteon was created in September 1997 as a distinct, self-funding profit
center to help increase Ford shareholder value," said Visteon Chairman Ed
Hagenlocker.  "Based on Visteon's performance to date, we believe the results
demonstrate a solid start in the competitive automotive supplier industry.  We
are definitely headed in the right direction."
    Charles Szuluk, President of Visteon, added, "Visteon's vision is to
become the world's leading provider of automotive components and integrated
systems.  Our plan is to get there by using our lean enterprise to deliver top
customer value and service through integrated systems and technology. "
    Szuluk listed several important milestones in 1998:  a 30 percent increase
in overall profitability and an $83 million reduction in costs in the first
quarter of 1998, and new business of $687 million year-to-date -- 33 percent
from non-Ford customers.   Marking a further globalization of Visteon's
business, 54 percent of this business was generated in North America,
25 percent in Europe, 16 percent in South America, and 5 percent in Asia.
    Visteon has taken aggressive steps to become a market-focused business.
It is driving toward its goal of 20 percent or more in non-Ford revenue by
pursuing opportunities in the OEM market, the aftermarket arena, and adjacent
businesses outside the automotive industry.   Visteon has built a 200-person
strong global marketing, sales and service team in four regions of the world,
dedicated account managers, and a customer care process to ensure top quality
service.
    "Our success to date is due to the hard work by the entire Visteon team,"
said Szuluk.  "In 1998, we are continuing to pursue our goal of delivering
shareholder value by creating a profitable, growing business that provides
customers with top value, award-winning quality, ultimate service, and
innovative technology solutions."
    Visteon has 80,000 employees located in 78 plants, including 32 joint
venture facilities, and 33 sales offices, engineering and technical centers in
20 countries around the world.