Visteon Corporation Reports First Quarter 2001 Earnings of $31 Million; Implements Customer-Facing Corporate Structure

Apr 20, 2001, 01:00 ET from Visteon Corporation

    DEARBORN, Mich., April 20 /PRNewswire Interactive News Release/ -- Despite
 a tougher industry climate with lower volumes, Visteon Corporation (NYSE:   VC)
 today announced it earned $31 million, or $0.24 per share during the First
 Quarter of 2001.  Visteon's First Quarter results compare with earnings of
 $147 million in the First Quarter of 2000.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20001201/DEF008LOGO )
     First Quarter earnings are down $93 million when compared with 2000 pro
 forma results, which are adjusted for the effects of independence-related
 costs resulting from Visteon's separation from Ford Motor Company.  The
 decline in earnings is more than accounted for by the effect of price
 reductions and lower production volume in North America.  Lower costs were a
 partial offset.
     First Quarter 2001 revenue was $4.7 billion, down 10 percent compared with
 2000.  The decrease is more than accounted for by lower sales to Ford,
 reflecting primarily reduced production in North America.  Added revenue from
 new business provided a partial offset.  The after-tax return on sales during
 the quarter was 0.8 percent.
     Visteon ended the First Quarter with $1.1 billion in cash and marketable
 securities, maintaining the Company's strong financial position.
     "We are starting the year with a strong balance sheet and a substantial
 increase in non-Ford wins, which shows a growing level of confidence in
 Visteon by an increasing number of OEMs," said Visteon Chairman and Chief
 Executive Officer Peter J. Pestillo.  "This additional new business with
 non-Ford customers is important to the future of Visteon because it helps us
 diversify our business portfolio."
     The company recently announced a new customer-facing structure, which
 included the elimination of 1,800 jobs worldwide.  The structuring, which we
 expect to be complete in the Second Quarter, will result in a one-time charge
 estimated at $135 million after taxes.  This charge will be reflected in
 Second Quarter results and the costs recovered in a little more than a year.
     Visteon Corporation is a leading full-service supplier that delivers
 consumer-driven technology solutions to automotive manufacturers worldwide and
 through multiple channels within the global automotive aftermarket.  Visteon
 has 82,000 employees and a global delivery system of more than 130 technical,
 manufacturing, sales, and service facilities located in 25 countries.
     Additional financial detail is available at www.visteon.com
 
 
                      VISTEON CORPORATION AND SUBSIDIARIES
                        CONSOLIDATED STATEMENT OF INCOME
                 For the Periods Ended March 31, 2001 and 2000
                    (in millions, except per share amounts)
 
                                                         First Quarter
                                                      2001           2000
                                                          (unaudited)
     Sales
        Ford and affiliates                         $3,913         $4,476
        Other customers                                810            749
           Total sales                               4,723          5,225
     Costs and expenses (Note 2)
        Costs of sales                               4,466          4,795
        Selling, administrative and other expenses     189            177
           Total costs and expenses                  4,655          4,972
     Operating income                                   68            253
     Interest income                                    19             34
     Interest expense                                   36             57
           Net interest expense                        (17)           (23)
     Equity in net income of affiliated companies        4              7
     Income before income taxes                         55            237
     Provision for income taxes                         19             86
     Income before minority interests                   36            151
     Minority interests in net income of subsidiaries    5              4
     Net income                                        $31           $147
 
     Average number of shares of Common Stock
      outstanding (Note 3)                             131            130
     Earnings and dividends per share (Note 3)
        Basic and diluted                            $0.24          $1.13
        Cash dividends                               $0.06            $ -
 
 
          The accompanying notes are part of the financial statements.
 
 
                      VISTEON CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                                 (in millions)
 
                                               March 31,        December 31,
                                                 2001               2000
                                             (unaudited)
     Assets
     Cash and cash equivalents                   $940             $1,412
     Marketable securities                        150                 65
        Total cash and marketable securities    1,090              1,477
     Accounts receivable - Ford and affiliates  1,863              1,333
     Accounts receivable - other customers        913                857
        Total receivables                       2,776              2,190
     Inventories (Note 4)                         940                948
     Deferred income taxes                        194                192
     Prepaid expenses and other current assets    152                198
        Total current assets                    5,152              5,005
     Equity in net assets of
      affiliated companies                        149                142
     Net property                               5,416              5,497
     Deferred income taxes                         95                100
     Other assets                                 612                581
        Total assets                          $11,424            $11,325
 
     Liabilities and Stockholders' Equity
     Trade payables                            $2,138             $1,949
     Accrued liabilities                          925              1,086
     Income taxes payable                         129                147
     Debt payable within one year                 640                622
        Total current liabilities               3,832              3,804
     Long-term debt                             1,365              1,397
     Other liabilities                          2,702              2,601
     Deferred income taxes                         17                 18
        Total liabilities                       7,916              7,820
     Stockholders' equity
     Capital stock
        Preferred Stock, par value $1.00,
         50 million shares authorized,
         none outstanding                           -                  -
        Common Stock, par value $1.00,
         500 million shares authorized,
         131 million shares issued
         and outstanding                          131                131
      Capital in excess of par value of stock   3,311              3,311
      Accumulated other comprehensive income     (199)              (179)
      Other                                       (12)               (12)
      Earnings retained for use in business       277                254
        Total stockholders' equity              3,508              3,505
        Total liabilities and
         stockholders' equity                 $11,424            $11,325
 
 
          The accompanying notes are part of the financial statements.
 
 
                      VISTEON CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                 For the Periods Ended March 31, 2001 and 2000
                                 (in millions)
 
                                                         First Quarter
                                                      2001           2000
                                                          (unaudited)
 
     Cash and cash equivalents at January 1         $1,412         $1,849
     Cash flows used in operating activities          (187)          (846)
 
     Cash flows from investing activities
        Capital expenditures                          (172)          (115)
        Purchases of securities                        (85)             -
        Other                                            3            (10)
           Net cash used in investing activities      (254)          (125)
     Cash flows from financing activities
        Cash distributions to prior owner                -            (38)
        Commercial paper issuances, net                (15)             -
        Proceeds from short-term debt                    1            118
        Proceeds from issuance of other debt            28             28
        Principal payments on other debt               (31)           (50)
        Cash dividends                                  (8)             -
           Net cash (used in)/provided by
            financing activities                       (25)            58
     Effect of exchange rate changes on cash            (6)             7
     Net decrease in cash and cash equivalents        (472)          (906)
     Cash and cash equivalents at March 31            $940           $943
 
          The accompanying notes are part of the financial statements.
 
 
                      VISTEON CORPORATION AND SUBSIDIARIES
                         NOTES TO FINANCIAL STATEMENTS
                                  (unaudited)
 
     1.  Financial Statements - The financial data presented herein is
 unaudited, but in the opinion of management reflect those adjustments
 necessary for a fair presentation of such information.  Results for interim
 periods should not be considered indicative of results for a full year.
 Reference should be made to the consolidated financial statements and
 accompanying notes included in the 2000 Annual Report on Form 10-K as filed
 with the Securities and Exchange Commission.
      Visteon Corporation ("Visteon") is a leading, global supplier of
 automotive systems, modules and components.  Visteon sells products primarily
 to global vehicle manufacturers, and also sells to the worldwide aftermarket
 for replacement and vehicle appearance enhancement parts.  Visteon became an
 independent company when Ford Motor Company ("Ford") established Visteon as a
 wholly-owned subsidiary in January 2000 and subsequently transferred to
 Visteon the assets and liabilities comprising Ford's automotive components and
 systems business.  Ford completed its spin-off of Visteon on June 28, 2000
 (the "spin-off").  Prior to incorporation, Visteon operated as Ford's
 automotive components and systems business.
 
     2.  Selected costs and expenses are summarized as follows:
                                                        First Quarter
                                                     2001           2000
                                                        (in millions)
     Depreciation                                    $140           $144
     Amortization                                      30             22
        Total                                        $170           $166
 
     3.  Income Per Share of Common Stock - Basic income per share of Common
 Stock is calculated by dividing the income attributable to Common Stock by the
 average number of shares of Common Stock outstanding during the applicable
 period, adjusted for restricted stock.  For purposes of the earnings per share
 calculations, 130 million shares of Common Stock are treated as outstanding
 for periods prior to the spin-off from Ford.
 
     4.  Inventories are summarized as follows:
                                                   March 31,      December 31,
                                                     2001            2000
                                                         (in millions)
     Raw materials, work-in-process
      and supplies                                   $803            $829
     Finished products                                137             119
        Total inventories                            $940            $948
     U.S. inventories                                $602            $586
 
     5.  Comprehensive Income - Other comprehensive income mainly includes
 foreign currency translation adjustments.  Total comprehensive income is
 summarized as follows:
                                                        First Quarter
                                                     2001           2000
                                                        (in millions)
     Net income                                       $31           $147
     Other comprehensive income                       (20)           (37)
        Total comprehensive income                    $11           $110
 
     6.  Accounting Change - Visteon adopted Statement of Financial Accounting
 Standards No. 133 ("SFAS 133"), "Accounting for Derivative Instruments and
 Hedging Activities," on January 1, 2001.  SFAS 133 (as amended by SFAS 137 and
 138) establishes accounting and reporting standards for derivative
 instruments, including certain derivative instruments embedded in other
 contracts, and for hedging activities.  It requires recognition of all
 derivatives as either assets or liabilities on the balance sheet and
 measurement of the instruments at fair value.  The change in fair value of a
 derivative is required to be recorded each period in current earnings or other
 comprehensive income, depending on whether the derivative is designated as
 part of a hedge transaction and if so, the type of hedge transaction.
     For anticipated transactions, Visteon uses forward contracts to hedge the
 variability in cash flows related to exchange rate movements.  Visteon uses
 derivatives to hedge anticipated exposures up to two years in the future.  For
 a derivative designated as a cash flow hedge, the effective portion of the
 derivative's gain or loss due to a change in fair value is initially recorded
 as a component of other comprehensive income and subsequently reclassified
 into earnings when the hedged exposure affects earnings.  For a derivative not
 designated as a hedging instrument, the gain or loss is recognized in earnings
 in the period of change.
     The first quarter impact of implementing this new standard on Visteon's
 results of operations and financial condition was not material.
 
     7.  Segment Information - Visteon's reportable operating segments are
 Dynamics & Energy Conversion; Comfort, Communication & Safety; and Glass.
 Financial information for the reportable operating segments is summarized as
 follows:
                      Dynamics &       Comfort,
                       Energy       Communication &                     Total
                     Conversion        Safety         Glass   Other    Visteon
                                            (in millions)
     First Quarter
     2001
     Sales             $2,152          $2,406          $165    $ -     $4,723
     Income/(loss)
      before taxes         13              62            (5)   (15)        55
     Net income/(loss)      9              34            (2)   (10)        31
     Average assets     5,183           5,898           294      -     11,375
 
     2000
     Sales             $2,425          $2,603          $197    $ -     $5,225
     Income/(loss)
      before taxes        106             153            (2)   (20)       237
     Net income/(loss)     67              94            (1)   (13)       147
     Average assets     5,304           6,088           728      -     12,120
 
     Other includes net interest expense not allocated to the reportable
 operating segments.
 
     8.  Subsequent Event - During April 2001, Visteon eliminated about 950
 U.S. staff jobs, representing about 12 percent of Visteon's U.S. salaried
 workforce.  As part of a review of operations outside the U.S., as well as
 plant structure within the U.S., the company expects about 1,800 worldwide
 jobs to be eliminated when combined with the actions implemented in April
 2001.  The structuring is expected to be completed by the end of the second
 quarter of 2001 and will result in a one-time charge estimated at $135 million
 after taxes ($215 million before taxes) in the second quarter of 2001.
 
                        Visteon Corporation and Subsidiaries
 
                                 SUPPLEMENTAL DATA
         (in millions, except per share amounts, percentages and as noted)
 
 
                                                    First Quarter
                                                          2001 Over/(Under)
                                             Actual      Actual     Pro Forma
                                              2001        2000         2000 *
     Sales
       Ford and Affiliates                  $3,913       $(563)       $(563)
       Other Customers                         810          61           61
         Total Sales                        $4,723       $(502)       $(502)
 
     Depreciation & Amortization
       Depreciation                           $140         $(4)         $(4)
       Amortization                             30           8            8
         Total Depreciation &
          Amortization                        $170          $4           $4
 
     Selling, Administrative and Other
      Expenses
       Amount                                 $189         $12         $(15)
       Percent of Revenue                      4.0%        0.6 pts      0.1 pts
 
     Operating Income                          $68       $(185)       $(160)
 
     Net Income                                $31       $(116)        $(93)
 
     Earnings per Share (Basic and
      Diluted)                               $0.24      $(0.89)      $(0.71)
 
     Cash Dividends per Share                $0.06          NA           NA
 
     Effective Tax Rate                         37%          - pts        - pts
 
     EBITDA
       Amount                                 $238       $(181)       $(156)
       Percent of Revenue                      5.0%       (3.0)pts     (2.5)pts
 
     After Tax Returns
       On Sales                                0.8%       (2.1)pts     (1.6)pts
       On Assets                               1.3        (3.7)          NA
       On Equity                               3.5          NA           NA
 
     Capital Expenditures
       Amount                                 $172         $57          $57
       Percent of Revenue                      3.6%        1.4 pts      1.4 pts
 
     Operating Cash Flow **                  $(359)       $642           NA
 
     Cash And Borrowing (at March 31)
       Cash and Marketable Securities       $1,090        $147         $390
       Borrowing                             2,005        (447)        (195)
 
      - - - - -
     *   As provided in the prospectus dated June 13, 2000
     **  Includes capital spending, excludes dividends, acquisitions and
         divestitures
 
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SOURCE Visteon Corporation
    DEARBORN, Mich., April 20 /PRNewswire Interactive News Release/ -- Despite
 a tougher industry climate with lower volumes, Visteon Corporation (NYSE:   VC)
 today announced it earned $31 million, or $0.24 per share during the First
 Quarter of 2001.  Visteon's First Quarter results compare with earnings of
 $147 million in the First Quarter of 2000.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20001201/DEF008LOGO )
     First Quarter earnings are down $93 million when compared with 2000 pro
 forma results, which are adjusted for the effects of independence-related
 costs resulting from Visteon's separation from Ford Motor Company.  The
 decline in earnings is more than accounted for by the effect of price
 reductions and lower production volume in North America.  Lower costs were a
 partial offset.
     First Quarter 2001 revenue was $4.7 billion, down 10 percent compared with
 2000.  The decrease is more than accounted for by lower sales to Ford,
 reflecting primarily reduced production in North America.  Added revenue from
 new business provided a partial offset.  The after-tax return on sales during
 the quarter was 0.8 percent.
     Visteon ended the First Quarter with $1.1 billion in cash and marketable
 securities, maintaining the Company's strong financial position.
     "We are starting the year with a strong balance sheet and a substantial
 increase in non-Ford wins, which shows a growing level of confidence in
 Visteon by an increasing number of OEMs," said Visteon Chairman and Chief
 Executive Officer Peter J. Pestillo.  "This additional new business with
 non-Ford customers is important to the future of Visteon because it helps us
 diversify our business portfolio."
     The company recently announced a new customer-facing structure, which
 included the elimination of 1,800 jobs worldwide.  The structuring, which we
 expect to be complete in the Second Quarter, will result in a one-time charge
 estimated at $135 million after taxes.  This charge will be reflected in
 Second Quarter results and the costs recovered in a little more than a year.
     Visteon Corporation is a leading full-service supplier that delivers
 consumer-driven technology solutions to automotive manufacturers worldwide and
 through multiple channels within the global automotive aftermarket.  Visteon
 has 82,000 employees and a global delivery system of more than 130 technical,
 manufacturing, sales, and service facilities located in 25 countries.
     Additional financial detail is available at www.visteon.com
 
 
                      VISTEON CORPORATION AND SUBSIDIARIES
                        CONSOLIDATED STATEMENT OF INCOME
                 For the Periods Ended March 31, 2001 and 2000
                    (in millions, except per share amounts)
 
                                                         First Quarter
                                                      2001           2000
                                                          (unaudited)
     Sales
        Ford and affiliates                         $3,913         $4,476
        Other customers                                810            749
           Total sales                               4,723          5,225
     Costs and expenses (Note 2)
        Costs of sales                               4,466          4,795
        Selling, administrative and other expenses     189            177
           Total costs and expenses                  4,655          4,972
     Operating income                                   68            253
     Interest income                                    19             34
     Interest expense                                   36             57
           Net interest expense                        (17)           (23)
     Equity in net income of affiliated companies        4              7
     Income before income taxes                         55            237
     Provision for income taxes                         19             86
     Income before minority interests                   36            151
     Minority interests in net income of subsidiaries    5              4
     Net income                                        $31           $147
 
     Average number of shares of Common Stock
      outstanding (Note 3)                             131            130
     Earnings and dividends per share (Note 3)
        Basic and diluted                            $0.24          $1.13
        Cash dividends                               $0.06            $ -
 
 
          The accompanying notes are part of the financial statements.
 
 
                      VISTEON CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                                 (in millions)
 
                                               March 31,        December 31,
                                                 2001               2000
                                             (unaudited)
     Assets
     Cash and cash equivalents                   $940             $1,412
     Marketable securities                        150                 65
        Total cash and marketable securities    1,090              1,477
     Accounts receivable - Ford and affiliates  1,863              1,333
     Accounts receivable - other customers        913                857
        Total receivables                       2,776              2,190
     Inventories (Note 4)                         940                948
     Deferred income taxes                        194                192
     Prepaid expenses and other current assets    152                198
        Total current assets                    5,152              5,005
     Equity in net assets of
      affiliated companies                        149                142
     Net property                               5,416              5,497
     Deferred income taxes                         95                100
     Other assets                                 612                581
        Total assets                          $11,424            $11,325
 
     Liabilities and Stockholders' Equity
     Trade payables                            $2,138             $1,949
     Accrued liabilities                          925              1,086
     Income taxes payable                         129                147
     Debt payable within one year                 640                622
        Total current liabilities               3,832              3,804
     Long-term debt                             1,365              1,397
     Other liabilities                          2,702              2,601
     Deferred income taxes                         17                 18
        Total liabilities                       7,916              7,820
     Stockholders' equity
     Capital stock
        Preferred Stock, par value $1.00,
         50 million shares authorized,
         none outstanding                           -                  -
        Common Stock, par value $1.00,
         500 million shares authorized,
         131 million shares issued
         and outstanding                          131                131
      Capital in excess of par value of stock   3,311              3,311
      Accumulated other comprehensive income     (199)              (179)
      Other                                       (12)               (12)
      Earnings retained for use in business       277                254
        Total stockholders' equity              3,508              3,505
        Total liabilities and
         stockholders' equity                 $11,424            $11,325
 
 
          The accompanying notes are part of the financial statements.
 
 
                      VISTEON CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                 For the Periods Ended March 31, 2001 and 2000
                                 (in millions)
 
                                                         First Quarter
                                                      2001           2000
                                                          (unaudited)
 
     Cash and cash equivalents at January 1         $1,412         $1,849
     Cash flows used in operating activities          (187)          (846)
 
     Cash flows from investing activities
        Capital expenditures                          (172)          (115)
        Purchases of securities                        (85)             -
        Other                                            3            (10)
           Net cash used in investing activities      (254)          (125)
     Cash flows from financing activities
        Cash distributions to prior owner                -            (38)
        Commercial paper issuances, net                (15)             -
        Proceeds from short-term debt                    1            118
        Proceeds from issuance of other debt            28             28
        Principal payments on other debt               (31)           (50)
        Cash dividends                                  (8)             -
           Net cash (used in)/provided by
            financing activities                       (25)            58
     Effect of exchange rate changes on cash            (6)             7
     Net decrease in cash and cash equivalents        (472)          (906)
     Cash and cash equivalents at March 31            $940           $943
 
          The accompanying notes are part of the financial statements.
 
 
                      VISTEON CORPORATION AND SUBSIDIARIES
                         NOTES TO FINANCIAL STATEMENTS
                                  (unaudited)
 
     1.  Financial Statements - The financial data presented herein is
 unaudited, but in the opinion of management reflect those adjustments
 necessary for a fair presentation of such information.  Results for interim
 periods should not be considered indicative of results for a full year.
 Reference should be made to the consolidated financial statements and
 accompanying notes included in the 2000 Annual Report on Form 10-K as filed
 with the Securities and Exchange Commission.
      Visteon Corporation ("Visteon") is a leading, global supplier of
 automotive systems, modules and components.  Visteon sells products primarily
 to global vehicle manufacturers, and also sells to the worldwide aftermarket
 for replacement and vehicle appearance enhancement parts.  Visteon became an
 independent company when Ford Motor Company ("Ford") established Visteon as a
 wholly-owned subsidiary in January 2000 and subsequently transferred to
 Visteon the assets and liabilities comprising Ford's automotive components and
 systems business.  Ford completed its spin-off of Visteon on June 28, 2000
 (the "spin-off").  Prior to incorporation, Visteon operated as Ford's
 automotive components and systems business.
 
     2.  Selected costs and expenses are summarized as follows:
                                                        First Quarter
                                                     2001           2000
                                                        (in millions)
     Depreciation                                    $140           $144
     Amortization                                      30             22
        Total                                        $170           $166
 
     3.  Income Per Share of Common Stock - Basic income per share of Common
 Stock is calculated by dividing the income attributable to Common Stock by the
 average number of shares of Common Stock outstanding during the applicable
 period, adjusted for restricted stock.  For purposes of the earnings per share
 calculations, 130 million shares of Common Stock are treated as outstanding
 for periods prior to the spin-off from Ford.
 
     4.  Inventories are summarized as follows:
                                                   March 31,      December 31,
                                                     2001            2000
                                                         (in millions)
     Raw materials, work-in-process
      and supplies                                   $803            $829
     Finished products                                137             119
        Total inventories                            $940            $948
     U.S. inventories                                $602            $586
 
     5.  Comprehensive Income - Other comprehensive income mainly includes
 foreign currency translation adjustments.  Total comprehensive income is
 summarized as follows:
                                                        First Quarter
                                                     2001           2000
                                                        (in millions)
     Net income                                       $31           $147
     Other comprehensive income                       (20)           (37)
        Total comprehensive income                    $11           $110
 
     6.  Accounting Change - Visteon adopted Statement of Financial Accounting
 Standards No. 133 ("SFAS 133"), "Accounting for Derivative Instruments and
 Hedging Activities," on January 1, 2001.  SFAS 133 (as amended by SFAS 137 and
 138) establishes accounting and reporting standards for derivative
 instruments, including certain derivative instruments embedded in other
 contracts, and for hedging activities.  It requires recognition of all
 derivatives as either assets or liabilities on the balance sheet and
 measurement of the instruments at fair value.  The change in fair value of a
 derivative is required to be recorded each period in current earnings or other
 comprehensive income, depending on whether the derivative is designated as
 part of a hedge transaction and if so, the type of hedge transaction.
     For anticipated transactions, Visteon uses forward contracts to hedge the
 variability in cash flows related to exchange rate movements.  Visteon uses
 derivatives to hedge anticipated exposures up to two years in the future.  For
 a derivative designated as a cash flow hedge, the effective portion of the
 derivative's gain or loss due to a change in fair value is initially recorded
 as a component of other comprehensive income and subsequently reclassified
 into earnings when the hedged exposure affects earnings.  For a derivative not
 designated as a hedging instrument, the gain or loss is recognized in earnings
 in the period of change.
     The first quarter impact of implementing this new standard on Visteon's
 results of operations and financial condition was not material.
 
     7.  Segment Information - Visteon's reportable operating segments are
 Dynamics & Energy Conversion; Comfort, Communication & Safety; and Glass.
 Financial information for the reportable operating segments is summarized as
 follows:
                      Dynamics &       Comfort,
                       Energy       Communication &                     Total
                     Conversion        Safety         Glass   Other    Visteon
                                            (in millions)
     First Quarter
     2001
     Sales             $2,152          $2,406          $165    $ -     $4,723
     Income/(loss)
      before taxes         13              62            (5)   (15)        55
     Net income/(loss)      9              34            (2)   (10)        31
     Average assets     5,183           5,898           294      -     11,375
 
     2000
     Sales             $2,425          $2,603          $197    $ -     $5,225
     Income/(loss)
      before taxes        106             153            (2)   (20)       237
     Net income/(loss)     67              94            (1)   (13)       147
     Average assets     5,304           6,088           728      -     12,120
 
     Other includes net interest expense not allocated to the reportable
 operating segments.
 
     8.  Subsequent Event - During April 2001, Visteon eliminated about 950
 U.S. staff jobs, representing about 12 percent of Visteon's U.S. salaried
 workforce.  As part of a review of operations outside the U.S., as well as
 plant structure within the U.S., the company expects about 1,800 worldwide
 jobs to be eliminated when combined with the actions implemented in April
 2001.  The structuring is expected to be completed by the end of the second
 quarter of 2001 and will result in a one-time charge estimated at $135 million
 after taxes ($215 million before taxes) in the second quarter of 2001.
 
                        Visteon Corporation and Subsidiaries
 
                                 SUPPLEMENTAL DATA
         (in millions, except per share amounts, percentages and as noted)
 
 
                                                    First Quarter
                                                          2001 Over/(Under)
                                             Actual      Actual     Pro Forma
                                              2001        2000         2000 *
     Sales
       Ford and Affiliates                  $3,913       $(563)       $(563)
       Other Customers                         810          61           61
         Total Sales                        $4,723       $(502)       $(502)
 
     Depreciation & Amortization
       Depreciation                           $140         $(4)         $(4)
       Amortization                             30           8            8
         Total Depreciation &
          Amortization                        $170          $4           $4
 
     Selling, Administrative and Other
      Expenses
       Amount                                 $189         $12         $(15)
       Percent of Revenue                      4.0%        0.6 pts      0.1 pts
 
     Operating Income                          $68       $(185)       $(160)
 
     Net Income                                $31       $(116)        $(93)
 
     Earnings per Share (Basic and
      Diluted)                               $0.24      $(0.89)      $(0.71)
 
     Cash Dividends per Share                $0.06          NA           NA
 
     Effective Tax Rate                         37%          - pts        - pts
 
     EBITDA
       Amount                                 $238       $(181)       $(156)
       Percent of Revenue                      5.0%       (3.0)pts     (2.5)pts
 
     After Tax Returns
       On Sales                                0.8%       (2.1)pts     (1.6)pts
       On Assets                               1.3        (3.7)          NA
       On Equity                               3.5          NA           NA
 
     Capital Expenditures
       Amount                                 $172         $57          $57
       Percent of Revenue                      3.6%        1.4 pts      1.4 pts
 
     Operating Cash Flow **                  $(359)       $642           NA
 
     Cash And Borrowing (at March 31)
       Cash and Marketable Securities       $1,090        $147         $390
       Borrowing                             2,005        (447)        (195)
 
      - - - - -
     *   As provided in the prospectus dated June 13, 2000
     **  Includes capital spending, excludes dividends, acquisitions and
         divestitures
 
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 SOURCE  Visteon Corporation