VAN BUREN TOWNSHIP, Mich. — Visteon has announced results for first quarter 2008, reporting a net loss of $105 million, or 81 cents per share, on total sales of $2.86 billion. These results include a $40 million loss associated with the sale of North American aftermarket facilities, including a $21 million asset impairment. For the first quarter 2007, Visteon reported a net loss of $153 million, or $1.19 per share, on total sales from continuing operations of $2.89 billion. First quarter 2007 results included $40 million of asset impairments. EBIT-R, as defined below, for first quarter 2008 was $51 million, an improvement of $97 million over first quarter 2007.

"Our first quarter results demonstrate the benefit of Visteon’s increased diversification of customer and geographic sales as well as significant operating improvement in our business," said Michael Johnston, chairman and chief executive officer. "We expanded our margins and remain focused on additional cost reduction through the implementation of our restructuring plan and our overhead cost reduction initiative."

Total sales for first quarter 2008 were $2.86 billion, a decrease of $28 million from the same period a year ago. First quarter 2008 product sales were $2.74 billion, a decrease of $19 million from first quarter 2007. Divestitures and plant closures decreased product sales by $340 million; favorable currency of $181 million and higher Asian sales were partial offsets. Services revenue was $121 million, a decrease of $9 million from the same period in 2007.

North American product sales declined $144 million year-over-year to $750 million, or 26 percent of total product sales. The impact of divestitures and plant closures, which decreased sales by $153 million, and lower Ford and Nissan truck production were partially offset by new business. European product sales decreased $25 million year-over-year to $1.17 billion, or 41 percent of product sales. Divestitures and plant closures decreased European sales by $153 million, while favorable currency of $139 million, production volumes and new business were partial offsets. Asian product sales increased $158 million year-over-year to $843 million, or 29 percent of total product sales. The increase is attributable to higher production volumes and new business, favorable currency of $23 million, partially offset by the divestiture of businesses that accounted for $26 million in sales in the first quarter last year. South American product sales were $107 million, essentially unchanged from a year ago.

For first quarter 2008, Visteon’s operating loss was $15 million, an improvement of $67 million from the same period in 2007, reflecting improved gross margin and lower SG&A spending. The year-over-year improvement was driven by cost performance, restructuring savings and favorable currency in excess of customer pricing.

First quarter 2008 results included a $40 million charge associated with the sale of North American aftermarket operations. Restructuring expense for the quarter was $46 million and reimbursement from the escrow account totaled $24 million. First quarter 2007 results from continuing operations included $40 million of asset impairments, $25 million of restructuring expenses and $35 million in reimbursement from the escrow account.

Visteon reduced its net loss by $48 million, or 38 cents per share, to $105 million, or 81 cents per share, for first quarter 2008. EBIT-R for first quarter 2008 was positive $51 million, an increase of $97 million from the negative $46 million reported in first quarter 2007.

During the first quarter of this year Visteon recorded $46 million of restructuring charges. These charges were primarily related to three facilities in continental Europe, which are being addressed as part of the company’s three-year plan, and related cost-reduction actions associated with the company’s drive to reduce overhead costs, through the reduction of general administrative and engineering related expenses.

In January Visteon stated it expects to generate cumulative savings of approximately $215 million over the next three years as part of the overhead cost reduction initiative. To date approximately 250 salaried employees have been separated from the company in conjunction with this initiative, and Visteon remains on track to generate the expected savings.

"We continue to improve our operations on a global basis as demonstrated in our first quarter results," said Donald Stebbins, president and chief operating officer. "We are driving operational excellence and performance improvement throughout our global organization."

Primarily due to a weaker U.S. dollar and the timing of divestitures, full-year 2008 product sales currently are expected to be in the range of $10 billion to $10.2 billion. Visteon also affirmed that it expects EBIT-R for full-year 2008 to be in the range of negative $25 million to positive $25 million and free cash flow for full-year 2008 to be in the range of negative $350 million to negative $250 million.

"The progress Visteon is making, combined with the additional actions we will execute in 2008, lays the foundation for Visteon to be free cash flow positive in 2009," Johnston said. "With $1.6 billion of cash at March 31, and additional available liquidity, we have the flexibility to execute our plans."

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