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News of  December 12, 2000

Volume Reductions Impact Visteons Fourth Quarter Earnings Estimate

Dearborn, Mich. - Visteon Corporation, announced that Fourth Quarter earnings are anticipated to be lower than analysts' expectations. Visteon is reducing its internal estimate of earnings  to about 35 cents per share, which includes a previously announced gain for  the sale of its interest in Conix. This decline reflects primarily reductions  in production announced by Ford Motor Company.

In addition, Visteon will record a non-cash impairment write-down of  approximately $140 million after taxes ($1.08 per share) in them Fourth Quarter  to reduce the net book value of the assets associated with the Glass Segment. The write-down reflects revised estimates of the fair value of the assets  following the end of discussions with Pilkington plc. Continuing pressures on  cost and prices in the sector make it unlikely that Visteon will recover fully the recorded value of assets associated with this business. Visteon remains committed to finding solutions for the Glass Segment during the coming months.

The combined effect of the lower earnings estimate and the non-cash impairment write-down will result in a net loss for the Fourth Quarter.

Visteon is taking a number of aggressive actions to address the softening of U.S. industry volumes. These include:

• A reduction in capital spending
• An immediate hiring freeze 
• Eliminating most production overtime
• And substantial reductions in all discretionary spending. 

(Dec. 6, 2000)

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