Visteon Earns $282 Million in Second Quarter - Up 17

Percent DEARBORN, Mich. (PROTEXT) - Visteon Automotive Systems is reporting second quarter 1999 net income of $282 million, up 17 percent from a year ago. Revenue for the second quarter was $5.1 billion, up 7 percent from 1998, with an after-tax return on sales of 5.7 percent, up 6/10 of a point. For the first half of 1999, net income was $490 million versus $430 million for the same period a year ago. First half 1999 revenue was $9.8 billion compared with $9.1 billion in the prior year, while after-tax return on sales was 5.0 percent, up 3/10 of a point. "We are making progress in the areas that are essential to Visteon's profitable growth -- increasing our non-Ford and aftermarket businesses, developing winning technologies, and simultaneously delivering bottom-line results," said Craig H. Muhlhauser, president, Visteon Automotive Systems. "We are doing this by leveraging our unique systems engineering expertise to integrate electronics and produce technology-driven systems solutions for our customers -- solutions that are consumer focused, and provide outstanding value and product differentiation." Muhlhauser highlighted two important achievements during the first half of 1999. First, Visteon won $1.1 billion of annualized new business, more than a third from non-Ford customers, 30 percent outside North America, and about 10 percent in the aftermarket. Second, the acquisition of Plastic Omnium's automotive interior division elevated Visteon to the #1 supplier of automotive cockpits in Europe and accelerated achievement of Visteon's prior goal of 20 percent non-Ford business in the region by 2002. With a global delivery system of nearly 125 technical, manufacturing, sales and service facilities located in 21 countries, Visteon Automotive Systems is leveraging the talents of its 77,000 employees to deliver innovative, consumer-driven technology systems solutions to its customers. Consolidated Statement of Income Second Quarter First Half 1999 1998 1999 1998 (Mils.) (Mils.) (Mils.) (Mils.) Revenue $5,063 $4,725 $9,835 $9,103 Cost and expenses Cost of goods sold $4,370 $4,141 $8,667 $8,073 Selling, administrative, and other expenses 228 200 401 340 Total costs and expenses $4,598 $4,341 $9,068 $8,413 Operating income $465 $384 $767 $690 Interest Interest income $2 $9 $24 $14 Interest expense 26 26 49 44 Net interest expense $(24) $(17) $(25) $(30) Equity in net income of affiliated companies 12 20 28 16 Income before taxes $453 $387 $770 $676 Provision for income taxes 166 145 279 247 Income before minority interests $287 $242 $491 $429 Minority interests in net income of subsidiaries 5 1 1 (1) Net income $282 $241 $490 $430 Memo: After-tax return on sales 5.7% 5.1% 5.0% 4.7% ots Original Text Service: Visteon Automotive Systems Internet: http://www.newsaktuell.de Contact: Media Inquiries: Cheryl Eberwein, 313-248-6321, or ceberwei@visteon.com , or Analyst Inquiries: Kent Niederhofer, 313-390-1467, or kniederh@visteon.com , both of Visteon Web site: http://media.visteon.com Subscribers please note that material bearing the slug "PROTEXT" is not part of CTK's news service and is not to be published under the "CTK" slug. Protext is a commercial service providing distribution of press releases from clients, who are identified in the text of Protext reports and who bear full responsibility for their contents.