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Visteon Earns Record in Q2

15 July 1998

Visteon Earns a Record $241 Million in Second Quarter -- Up 15 Percent

    DEARBORN, Mich., July 15 -- Visteon Automotive Systems is
reporting net income for the second quarter of 1998 of $241 million, up
15 percent from $210 million in the second quarter of 1997.  Second quarter
1998 revenue was $4.7 billion with after-tax return on sales for the quarter
at 5.1 percent, up 7/10 of a point from year ago levels.
    "We're pleased with the results we are reporting today.  We've set
aggressive performance targets for Visteon, and we are on track to meet or
exceed them," said Charles W. Szuluk, president, Visteon Automotive Systems.
"Our strategic focus on making our customers successful, implementing a lean
enterprise and delivering fully integrated systems is driving these results."
    During the second quarter Visteon also announced the acquisition of two
plants in Poland; opened a major new scroll compressor plant in Portugal; and
opened sales offices in Wolfsburg, Germany and Mexico City, Mexico.
    Szuluk noted several important achievements in the first half of 1998:
acquiring more than $1.3 billion in new business -- 31 percent from non-Ford
customers -- which brings it close to its full year target of $1.5 billion.
Visteon also reduced costs by over $200 million exceeding its full year
target.
    For the first half of 1998, Visteon's net income was $430 million, up 21
percent from 1997.  First half 1998 revenue was $9.1 billion, up 3 percent
from 1997, with after-tax return on sales for the half at 4.7 percent, up 7/10
of a point.
    Visteon's long term goals are to grow its business with OEM customers,
increase non-Ford sales, expand its presence in the aftermarket arena and
leverage its systems technologies in non-automotive markets.
    Visteon, an enterprise of Ford Motor Company , has 82,000
employees located in 21 countries.  Visteon has 81 plants -- 32 joint ventures
and 49 wholly-owned facilities -- and 35 sales offices, engineering and
technical centers.  Visteon's corporate headquarters is located in Dearborn,
Michigan.


    Consolidated Statement of Income

                              Second Quarter             First Half
                            1998         1997         1998         1997
                           (Mils.)      (Mils.)      (Mils.)      (Mils.)

    Revenue               $  4,725     $  4,720     $  9,103     $  8,873

    Cost and expenses
      Cost of goods sold     4,142        4,244        8,073        8,054
      Selling, administrative,
       and other expenses      199          142          340           62
          Total costs and
           expenses       $  4,341     $  4,386     $  8,413      $ 8,316

    Operating income      $    384     $    334     $    690      $   557

    Interest
      Interest income            9            4           14            9
      Interest expense          26           20           44           40
          Net interest
           expense        $    (17)    $    (16)    $    (30)     $   (31)

    Equity in net income of
     affiliated companies       20            9           16           16
      Income before taxes $    387     $    327     $    676      $   542

    Provision for income
     taxes                     145          116          247          186
      Income before minority
       interests          $    242     $    211     $    429      $   356

    Minority interests in net
     income of subsidiaries      1            1           (1)           0
      Net income          $    241     $    210     $    430     $    356

    Memo:  After-tax return
     on sales                  5.1%         4.4%         4.7%         4.0%