For the second quarter, product sales were $2.86 billion and services sales were $138 million. Sales for the same period a year ago totaled $5 billion. Product sales were lower by $2.14 billion due to the Oct. 1, 2005, transaction with Ford that transferred 23 Visteon facilities to Automotive Components Holdings (ACH), LLC, a Ford-managed business entity.

Visteon's net income of $50 million, or 39 cents per share, for the current quarter included $22 million of non-cash asset impairments related to the company's restructuring actions and an extraordinary gain of $8 million associated with the acquisition of a lighting facility in Mexico. Also as previously indicated, Visteon recognized a $49 million benefit in the quarter related to the relief of post-employment benefits for Visteon salaried employees associated with two ACH manufacturing facilities transferred to Ford Motor Co. Income tax expense of $17 million in the quarter included a $14 million benefit from the restoration of deferred tax assets related to the company's Brazilian operations.

EBIT-R, as defined, was $119 million for the second quarter 2006, an increase of $47 million from the $72 million reported in the first quarter 2006. EBIT-R for the second quarter 2005 was a loss of $33 million.

For the first half of 2006, product sales were $5.7 billion and services sales were $283 million. More than half of the company's product sales were generated from customers other than Ford, which the company says demonstrates its continued progress in diversifying its customer base. Sales for the same period a year ago totaled $10 billion, of which non-Ford sales were 35 percent. Product sales were lower by $4.3 billion due to the sale of certain plants in North America pursuant to the ACH transactions completed in October 2005.

Visteon's net income of $53 million, or 41 cents per share, for the first six months reflects improved operating performance and the financial benefit of the ACH transactions with Ford. The half year results include $22 million of non-cash asset impairments related to the company's restructuring actions and an extraordinary gain of $8 million associated with the acquisition of a lighting facility in Mexico. Also as previously indicated, Visteon recognized a cumulative benefit of $72 million in the first half of 2006 related to the relief of post-employment benefits for Visteon salaried employees associated with two ACH manufacturing facilities transferred to Ford.

For the first half 2005, Visteon reported a net loss of $1.401 billion or $11.15 per share. These results included $1.176 billion, or $9.36 per share, of non-cash asset impairments.

EBIT-R for the first half 2006 totaled $191 million, increasing $329 million from a first half 2005 EBIT-R loss of $138 million.

Free cash flow of $10 million for the quarter was an improvement of $127 million over the first quarter 2006. Free cash flow was lower than the second quarter 2005 in which Visteon received the benefit of accelerated payment terms from Ford as part of the funding agreement.

During the second quarter 2006, Visteon closed on a seven-year $800 million secured term loan. Proceeds from the loan were used to repay amounts outstanding under the company's existing credit facilities that were scheduled to expire in June 2007, including a $350 million 18-month term loan and a $241 million delayed draw term loan.

In connection with this financing, Visteon repaid $50 million of borrowings under the company's $772 million multi-year secured revolving credit facility and reduced the amount available under that facility to $500 million. Visteon expects to eliminate the multi-year revolver upon completion of new U.S. and European five-year revolving credit facilities. The company has received commitments for these facilities totaling $700 million from JPMorgan Chase Bank, N.A. and Citigroup Global Markets Inc., and expects to complete these transactions in the third quarter, subject to market conditions.

Proceeds were also used to repurchase $150 million of the company's 8.25 percent notes that are due in 2010. This repurchase resulted in a gain of $8 million in the second quarter which was offset by expense associated with debt issuance costs related to the extinguished credit facilities.

As of June 30, Visteon had $836 million of cash and total debt of $2 billion and was well within the limits of its financial covenants in its existing credit facilities.

Third quarter 2006 is expected to be challenging, reflecting seasonally low production volumes globally. Visteon is raising its estimate for 2006 full year EBIT-R to a range of $170 million to $200 million. Additionally, the company still expects to generate about $50 million of free cash flow and expects 2006 full-year product sales of approximately $11 billion.

For more information about Visteon, go to: http://www.visteon.com.

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