VAN BUREN TOWNSHIP, MI -- Visteon has reported improved first quarter results for 2006 showing strong progress toward implementing its three-year plan. For the first quarter 2006, Visteon reported net income of $3 million or 2 cents per share, a significant improvement over first quarter 2005 results of a net loss of $163 million, or $1.30 per share.

"We are pleased with the improvement in our performance in the first quarter and the momentum we are gaining on implementing our three-year plan," said Michael Johnston, chairman and chief executive officer. "Our operating results were better than both the first and fourth quarters of 2005, and we have made solid progress restructuring our organization, improving our base operations and growing our global business."

"Our improved performance is driven by the significant actions we are taking across all of our operations," Johnston added. "We know there is still much work to be done. We have clear plans in place to achieve our objectives, and we are looking for every opportunity to accelerate our three-year plan."

For the first quarter 2006, product sales were $2.8 billion and services sales totaled $145 million. Sales for the same period a year ago totaled $5 billion. Product sales were lower primarily due to the Oct. 1, 2005, transaction with Ford that transferred 23 Visteon facilities to Automotive Components Holdings, LLC, a Ford-managed business entity.

"Our balanced portfolio positions us for future growth," Johnston noted. "We have a solid new business backlog and have started the year with some impressive wins that further diversify our customer base."

For the first quarter 2006, Visteon recorded net income of $3 million, or 2 cents per share compared to a net loss of $163 million, or $1.30 per share, in the first quarter of 2005.

Free cash flow was a use of $117 million for the quarter and improved by $26 million from the fourth quarter 2005, despite normal seasonality. Free cash flow was lower than the first quarter 2005 in which Visteon first received the benefit of accelerated payment terms from Ford as part of a financial agreement announced March 10, 2005.

As of March 31, Visteon had $881 million of cash, a $16 million increase over the balance on Dec. 31, 2005. Total debt for the company as of March 31, was $2.08 billion, up marginally from year-end 2005. As of March 31, Visteon was well within the limits of its financial covenants in its existing credit facilities and expects to remain in compliance throughout the year.

"Cash flow improved from the prior quarter because of the heightened focus and tighter controls on spending we have implemented across the company," said James Palmer, executive vice president and chief financial officer. "We have made progress while continuing to invest in the business at appropriate levels, and we remain committed to taking additional steps to strengthen our cash flow position."

Visteon is raising its estimate for 2006 full-year for EBIT-R to a range of $120 million to $150 million. Additionally, the company still expects to generate about $50 million of free cash flow for 2006.

"We have confidence in our continued improvement," Johnston added. "We are increasing our outlook for EBIT-R, reaffirming our outlook for positive free cash flow and reiterating our expectation for continued improvement in 2007 and beyond."

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