Visteon Earns $282 Million in Second Quarter - Up 17

Percent DEARBORN, Mich. (PROTEXT) - Visteon Automotive Systems isreporting second quarter 1999 net income of $282 million, up 17percent from a year ago. Revenue for the second quarter was $5.1billion, up 7 percent from 1998, with an after-tax return onsales 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 1999revenue was $9.8 billion compared with $9.1 billion in the prioryear, while after-tax return on sales was 5.0 percent, up 3/10 ofa point. "We are making progress in the areas that are essential toVisteon's profitable growth -- increasing our non-Ford andaftermarket businesses, developing winning technologies, andsimultaneously delivering bottom-line results," said Craig H.Muhlhauser, president, Visteon Automotive Systems. "We are doingthis by leveraging our unique systems engineering expertise tointegrate electronics and produce technology-driven systemssolutions for our customers -- solutions that are consumerfocused, and provide outstanding value and productdifferentiation." Muhlhauser highlighted two important achievements during thefirst half of 1999. First, Visteon won $1.1 billion of annualizednew business, more than a third from non-Ford customers, 30percent outside North America, and about 10 percent in theaftermarket. Second, the acquisition of Plastic Omnium'sautomotive interior division elevated Visteon to the #1 supplierof automotive cockpits in Europe and accelerated achievement ofVisteon's prior goal of 20 percent non-Ford business in theregion by 2002. With a global delivery system of nearly 125 technical,manufacturing, sales and service facilities located in 21countries, Visteon Automotive Systems is leveraging the talentsof its 77,000 employees to deliver innovative, consumer-driventechnology 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%ots Original Text Service: Visteon Automotive Systems Internet:http://www.newsaktuell.de Contact: Media Inquiries: CherylEberwein, 313-248-6321, or ceberwei@visteon.com , or AnalystInquiries: Kent Niederhofer, 313-390-1467, orkniederh@visteon.com , both of Visteon Web site:http://media.visteon.com

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