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Visteon Earns $282 Million in Second Quarter - Up 17 Percent

14 July 1999

Visteon Earns $282 Million in Second Quarter - Up 17 Percent

    DEARBORN, Mich., July 14 -- Visteon Automotive Systems is
reporting second quarter 1999 net income of $282 million, up 17 percent from a
year ago.  Revenue for the second quarter was $5.1 billion, up 7 percent from
1998, with an after-tax return on sales of 5.7 percent, up 6/10 of a point.
    For the first half of 1999, net income was $490 million versus $430
million for the same period a year ago.  First half 1999 revenue was $9.8
billion compared with $9.1 billion in the prior year, while after-tax return
on sales was 5.0 percent, up 3/10 of a point.
    "We are making progress in the areas that are essential to Visteon's
profitable growth -- increasing our non-Ford and aftermarket businesses,
developing winning technologies, and simultaneously delivering bottom-line
results," said Craig H. Muhlhauser, president, Visteon Automotive Systems.
"We are doing this by leveraging our unique systems engineering expertise to
integrate electronics and produce technology-driven systems solutions for our
customers -- solutions that are consumer focused, and provide outstanding
value and product differentiation."
    Muhlhauser highlighted two important achievements during the first half of
1999.  First, Visteon won $1.1 billion of annualized new business, more than a
third from non-Ford customers, 30 percent outside North America, and about 10
percent in the aftermarket.  Second, the acquisition of Plastic Omnium's
automotive interior division elevated Visteon to the #1 supplier of automotive
cockpits in Europe and accelerated achievement of Visteon's prior goal of 20
percent non-Ford business in the region by 2002.
    With a global delivery system of nearly 125 technical, manufacturing,
sales and service facilities located in 21 countries, Visteon Automotive
Systems is leveraging the talents of its 77,000 employees to deliver
innovative, consumer-driven technology systems solutions to its customers.

                       Consolidated Statement of Income

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

    Revenue                               $5,063    $4,725   $9,835    $9,103

    Cost and expenses
         Cost of goods sold               $4,370    $4,141   $8,667    $8,073
         Selling, administrative, and other
          expenses                           228       200      401       340
              Total costs and expenses    $4,598    $4,341   $9,068    $8,413

    Operating income                        $465      $384     $767      $690

    Interest
         Interest income                      $2        $9      $24       $14
         Interest expense                     26        26       49        44
              Net interest expense          $(24)     $(17)    $(25)     $(30)

    Equity in net income of affiliated
     companies                                12        20       28        16
         Income before taxes                $453      $387     $770      $676

    Provision for income taxes               166       145      279       247
         Income before minority interests   $287      $242     $491      $429

    Minority interests in net income of
     subsidiaries                              5         1        1        (1)
         Net income                         $282      $241     $490      $430

    Memo:  After-tax return on sales         5.7%      5.1%     5.0%      4.7%