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Visteon Reports First Quarter 1999 Earnings of $208 Million

16 April 1999

Visteon Reports First Quarter 1999 Earnings of $208 Million, Up 10 Percent

    DEARBORN, Mich., April 15 -- Visteon Automotive Systems is
reporting a first quarter 1999 net income of $208 million, up 10 percent from
a year ago.  Revenue for the first quarter was $4.8 billion, up 9 percent from
1998, with an after-tax return on sales of 4.3 percent.
    "Visteon has extended its year-over-year profit performance improvement to
five consecutive quarters," said Craig Muhlhauser, president, Visteon
Automotive Systems.  "This demonstrates the commitment of our entire team to
deliver on our customer promise and increase shareholder value."
    Visteon is aggressively pursuing its 1999 milestone of securing
$2 billion in new forward year business contracts.  To date, over $700 million
in new business has been awarded with customers throughout the world including
33 percent with non-Ford customers.  By comparison, Visteon's 1998
non-Ford sales were less than 10 percent.  In addition, Visteon continues to
expand its global customer base with 27 percent of the new business outside of
North America.
    "Visteon is making significant progress on its long-term top-line growth
objective and its target to expand its non-Ford customer base," said
Muhlhauser.
    With a global system of nearly 100 technical, manufacturing, sales and
service facilities located in 20 countries, Visteon is leveraging the talents
of 74,000 employees to deliver innovative, consumer-driven automotive systems
solutions to its customers.

                       Consolidated Statement of Income

                                                            First Quarter
                                                          1999          1998
                                                         (Mils.)       (Mils.)

    Revenue                                              $4,772        $4,378

    Cost and expenses
         Cost of goods sold                               4,297         3,932
         Selling, administrative, and other expenses        173           140
              Total costs and expenses                   $4,470        $4,072

    Operating income                                       $302          $306

    Interest
         Interest income                                     22             5
         Interest expense                                    23            18
              Net interest expense                          $(1)         $(13)

    Equity in net income of affiliated companies             16            (4)
         Income before taxes                               $317          $289

    Provision for income taxes                              113           102
         Income before minority interests                  $204          $187

    Minority interests in net income of subsidiaries         (4)           (2)
         Net income                                        $208          $189

    Memo:  After-tax return on sales                        4.3%          4.3%