VAN BUREN TOWNSHIP, MI — Visteon Corp. has announced results for first quarter 2007. For first quarter 2007, Visteon reported a net loss of $153 million, or $1.19 per share, on total sales of $2.93 billion. The first quarter results included $50 million of non-cash asset impairments. EBIT-R, as defined below, for first quarter 2007 was negative $46 million.

"We continue to make progress implementing our restructuring, improvement and growth plan, despite North American production declines," said Michael Johnston, chairman and chief executive officer. "We anticipated this environment, and we have taken the necessary steps to ensure we have the financing and flexibility we need to continue our momentum."

Total sales for first quarter 2007 totaled $2.93 billion. First quarter 2007 product sales were $2.8 billion, down slightly from first quarter 2006 as favorable currency and increased sales in Europe and Asia were offset by lower production volumes, principally in North America. Product sales to non-Ford customers of $1.62 billion rose 9 percent or $138 million and represented 58 percent of total product sales. Product sales to Ford Motor Co. decreased 12 percent to $1.18 billion. Services revenues of $130 million decreased $15 million from the same period in 2006. Visteon’s first quarter results included $41 million of expenses reimbursable from the escrow account and non-cash asset impairments of $50 million. EBIT-R for the first quarter of 2007 was negative $46 million.

For first quarter 2006, Visteon reported net income of $3 million, or 2 cents per diluted share, which included $9 million of restructuring expenses which qualified for reimbursement from the escrow account. EBIT-R for the first quarter of 2006 was $72 million.

Cash used by operating activities for the first quarter of 2007 was $131 million compared with $32 million in the same period a year ago. First quarter 2007 cash flow was impacted by normal seasonal factors, customer and geographic sales mix, the change in payment terms from Ford in North America and operating performance.

Capital expenditures for the first quarter of 2007 of $64 million were $21 million lower than the same period a year ago. Free cash flow, as defined below, for the first quarter of 2007 was negative $195 million, compared with negative $117 million in the same period of 2006.

As of March 31 cash balances totaled $872 million as compared to $1.057 billion at Dec. 31, 2006. Total debt of $2.2 billion as of March 31 was essentially unchanged from year-end 2006. On April 10 Visteon enhanced its liquidity by adding a $500 million tranche to its existing secured term loan facility.

Visteon said it continues to make solid progress on the implementation of its multi-year improvement plan. During the first quarter 2007, the company also recognized $41 million of restructuring and other charges associated with the exit of certain manufacturing operations in connection with the company’s multi-year improvement plan. These charges are eligible for reimbursement from the escrow account.

The company completed the salaried reduction program that was announced in October 2006. Through this program some 900 salaried positions were eliminated. Total restructuring expenses related to this program were $23 million and the company expects to save more than $65 million annually from this program.

Visteon reached agreement to sell certain chassis operations in Germany, Poland and Brazil to Special Situations Venture Partner II LP (SSVP) in March 2007. On April 30, the European facilities were transferred to SSVP. Driveline assets located in Visteon’s Sao Paulo, Brazil facility will be transferred in the second half of 2007. Full year 2006 sales for these operations were $600 million, primarily to Ford. This divestiture addresses a significant portion of the company’s non-core operations and is expected to reduce 2007 product sales by approximately $400 million, lower operating income by $35 million and reduce cash from operations by $55 million. As communicated earlier, the impact of this divestiture was not reflected in the company’s previous financial outlook for 2007. Visteon will receive cash proceeds of about $90 million and transfer certain liabilities, including employee pensions, as specified under the terms of the agreement.

"With the completion of these chassis divestitures, half of the actions we committed to take in our multi-year plan are complete," said Don Stebbins, president and chief operating officer. "By addressing non-core and underperforming assets we continue to enhance our already strong global footprint, as we focus on our core product areas and position Visteon for profitable growth."

On April 13, in response to program actions by Ford, Visteon ceased production at its interiors facility in Chicago. The facility had full year 2006 sales of about $300 million. In February 2007, Visteon announced plans to close its climate facility in Connersville, IN. The facility had full year 2006 sales of about $360 million, primarily to Ford. Negotiations with represented labor unions regarding the closure of this facility are under way.

Also, during the first quarter of 2007, Visteon recognized $50 million of non-cash asset impairments primarily related to its chassis operations. This impairment, while included in Visteon’s reported results for the quarter, is excluded from the calculation of EBIT-R. As a result of its restructuring actions, Visteon expects to incur approximately $60 million of other related expenses during full year 2007. These expenses are not eligible for reimbursement from the escrow account and are included in both Visteon’s reported results and EBIT-R. During the first quarter of 2007, Visteon incurred $10 million of such expenses comprised of accelerated depreciation expense.

New Business Wins

Following strong new business wins in full year 2006, Visteon has continued its success, winning a significant amount of new business during the first quarter of 2007. These wins were with numerous customers, primarily outside of North America and in climate and electronics.

"We continue to win the confidence of an increasingly diverse customer base," Stebbins added. "Our innovation is earning recognition from our customers and the industry and creating a strong revenue pipeline for 2009 and beyond."

Full Year 2007 Outlook

Visteon is only adjusting its outlook for 2007 to reflect the divestiture of the aforementioned chassis operations. Visteon now currently estimates that its 2007 full year EBIT-R will be in the range of negative $35 million to negative $135 million on anticipated 2007 product sales of $10.7 billion. In addition, Visteon expects free cash flow for 2007 to be in the range of negative $180 million to negative $280 million.

The company expects that second quarter 2007 production volumes for a number of its key customers will be significantly lower than a year ago. Although market conditions are expected to remain challenging, year-over-year volume comparisons in the second half of 2007 are expected to be more favorable.

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