RNS Number:6720U
Ford Motor Co
17 April 2002
Contact:
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David Reuter
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FORD REPORTS BETTER THAN EXPECTED
FIRST QUARTER FINANCIAL RESULTS
• First quarter loss of 6 cents per share, excluding unusual items,
beats consensus estimate of a loss of 15 cents per share.
• European automotive operations earn $117 million.
• Automotive gross cash at $21.5 billion.
• Revitalization Plan on track to meet or surpass 2002 earnings milestone.
DEARBORN, Mich., April 17 - Ford Motor Company (NYSE: F) today reported a net
loss of $800 million, or 45 cents per share, in the first quarter of 2002.
Excluding unusual items related to Statement of Financial Accounting Standards
(SFAS) Nos. 142 and 133, Ford lost $ 108 million, or 6 cents per share. Ford
earned $1.13 billion, or 60 cents a share, before unusual items in the first
quarter of 2001.
Ford's first quarter revenues were $39.86 billion, a 6 percent decline from last
year's first quarter. Worldwide vehicle unit sales in the 2002 first quarter
were 1,678,000, down 7 percent from a year ago.
"Our first quarter performance shows that our Revitalization Plan efforts are
taking hold and we are heading in the right direction," said Bill Ford, chairman
and CEO. "While there is still a great deal of uncertainty in our industry, the
general economic climate is improving and we are on schedule to meet or surpass
our 2002 earnings milestone."
In the first quarter, Ford began the launch of several all-new or significantly
freshened products across its brand portfolio, including the Ford Expedition and
European Ford Fiesta, Lincoln Navigator and Lincoln Town Car, Mercury Grand
Marquis, Jaguar S-Type R and Land Rover Range Rover. In addition, the company
announced the return of the GT40 high-performance sports car, introduced key
middle segment vehicles such as the Ford CrossTrainer and Ford Five Hundred and
publicly debuted the Lincoln Aviator, Volvo XC90, Mercury Marauder and European
Ford Fusion.
Ford also benefited in the first quarter from strong sales of key new product
introductions from Premier Automotive Group's Jaguar and Land Rover brands. The
recently introduced Jaguar X-Type and Land Rover Freelander combined to make
those brands No. 1 and No. 2, respectively, in year-to-date U.S. sales increases
over the previous year.
First quarter 2002 results include a $708 million non-cash after-tax charge for
the transition to a new accounting standard for goodwill (SFAS No.142), which
related to various investments in the automotive sector, and a $16 million
non-cash after-tax benefit relating to the accounting standard for derivative
instruments and hedging activities (SFAS No.133).
The following discussion of our results excludes these unusual items, as well as
any unusual items in our first quarter 2001 results:
AUTOMOTIVE OPERATIONS
Worldwide automotive operations lost $310 million in the first quarter, compared
to a profit of $748 million year ago. Worldwide automotive revenues were $32.32
billion, compared with $34.65 billion a year ago.
Automotive gross cash at March 31 totaled $21.5 billion, including $2 billion
previously funded employee benefit expenses through a Voluntary Employee
Beneficiary Association trust.
North America: The first quarter loss in North America was $430 million.
Earnings in the 2001 first quarter were $754 million. The decline was a result
of significantly higher marketing costs and lower production.
Europe: Ford earned $117 million in the first quarter in Europe, compared with
earnings of $88 million a year ago. The increase is largely explained by the
elimination of goodwill amortization due to SFAS No. 142. Continued cost
reductions and other improvements offset lower sales due to declining industry
and production ramp-up for the new Ford Fiesta.
South America: Ford operations in South America lost $51 million, compared with
a loss of $53 million a year ago. Results from the region continue to be
affected by currency devaluations and weak economic conditions in Brazil and
Argentina.
Rest-of-World: Operations from the rest of the world earned a profit of $54
million, compared with a loss of $41 million in the 2001 first quarter. The
improvement was primarily due to smaller losses at Mazda.
FORD CREDIT
Ford Credit earned $242 million in the first quarter, down from $406 million a
year ago. Results were lower primarily due to the unfavorable impact of
securitizations and higher actual credit losses, offset partially by improved
financing margins and higher levels of managed receivables. Increased
securitizations over the past 12 months resulted in lower owned receivables and
related revenue, offset partially by higher income on retained interests, excess
spread and servicing fees. Higher actual credit losses reflected weaker economic
conditions compared with a year ago.
HERTZ
Hertz reported a first quarter loss of $48 million, compared with a loss of $4
million in the first quarter a year ago. The loss was mainly attributable to
lower rental volume in the U.S. resulting from a decline in travel.
OUTLOOK
"The U.S. economy is beginning to show signs of a recovery," said Nick Scheele,
Ford president and chief operating officer. "As consumer confidence increases,
we are well positioned with the many new products we are in the process of
bringing to market."
Investors can hear a review of first quarter results by Martin Inglis, group
vice president and chief financial officer, on the Internet at
http://www.streetevents.com or http://www.shareholder.ford.com. The presentation
will start at 9 a.m. EDT, April 17.
Ford Motor Company is the world's second largest automaker, selling vehicles in
200 markets and with approximately 350,000 employees on six continents.
Its automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln,
Mercury and Volvo. Its automotive-related services include Ford Credit, Hertz
and Quality Care.
Statements included herein may constitute "forward looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. These
statements involve a number of risks, uncertainties, and other factors that
could cause actual results to differ materially from those stated, including,
without limitation: greater price competition in the U.S. and Europe resulting
from currency fluctuations, industry overcapacity or other factors; a
significant decline in industry sales, particularly in the U.S. or Europe,
resulting from slowing economic growth or other factors; lower-than-anticipated
market acceptance of new or existing products; currency or commodity price
fluctuations; economic difficulties in South America or Asia; the availability
of fuel or higher fuel prices; a market shift from truck sales in the U.S.;
lower-than-anticipated residual values for leased vehicles; a credit rating
downgrade; labor or other constraints on our ability to restructure our
business; increased safety, emissions, fuel economy or other regulation
resulting in higher costs and/or sales restrictions; work stoppages at key Ford
or supplier facilities or other interruptions of supplies; and the discovery of
defects in vehicles resulting in delays in new model launches, recall
campaigns, increased warranty costs or litigation, insufficient credit loss
reserves; and our inability to implement the Revitalization Plan.
Ford Motor Company
SELECTED CONSOLIDATED DETAIL
2002 Compared with 2001
First Quarter
2002 2001
Worldwide vehicle unit sales of cars and
trucks (in thousands)
- North America 1,093 1,103
- Outside North America 585 702
Total 1,678 1,805
Sales and revenues (Mils.)
- Automotive $ 32,321 $ 34,650
- Financial Services 7,536 7,796
Total $ 39,857 $ 42,446
Net income (Mils.)
- Automotive $ (308) $ 689
- Financial services 216 370
Income before cumulative effect of change in
accounting principle (92) 1,059
- Cumulative effect of change in accounting
principle (708) -
Total net income $ (800) $ 1,059
Adjusted net income before cumulative effect
of change in accounting principle (Mils,) a/ $ (108) $ 1,131
Unusual items (Mils.)
- SFAS 133 $ 16 $ (72)
Capital expenditures (Mils.)
- Automotive $ 1,537 $ 1,357
- Financial Services 181 131
Total $ 1,718 $ 1,488
Automotive capital expenditures as a
percentage of sales 4.8% 3.9%
Automotive net cash at December 31 (Mils.)
- Cash and marketable securities $ 19,506 $ 15,767
- VEBA 2,027 3,379
Gross cash including VEBA 21,533 19,146
- Debt 13,916 12,036
Automotive net cash including VEBA $ 7,617 $ 7,110
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
Income assuming dilution
- Automotive $ (0.17) $ 0.36
- Financial Services 0.12 0.20
Subtotal (0.05) 0.56
- Cumulative effect of change in accounting principle (0.40) -
Total $ (0.45) $ 0.56
Adjusted net income before cumulative effect of change
in accounting principle a/ $ (0.06) $ 0.60
Unusual items
- SFAS 133 $ 0.01 $ (0.04)
a/ Excludes unusual items disclosed by the Company.
Prior periods have been restated.
Ford Motor Company and Subsidiaries
VEHICLE UNIT SALES
2002 Compared with 2001
(in thousands)
First Quarter
2002 2001
North America
United States
Cars 384 362
Trucks 603 653
Total United States 987 1,015
Canada 73 52
Mexico 33 36
Total North America 1,093 1,103
Europe
Britain 155 175
Germany 79 105
Italy 50 63
France 24 42
Spain 42 40
Sweden 30 33
Other countries 77 113
Total Europe 457 571
South America
Brazil 28 35
Argentina 4 8
Other countries 9 7
Total South America 41 50
Other international
Australia 27 25
Taiwan 20 18
Other countries 40 38
Total other international 87 81
Total worldwide vehicle unit sales 1,678 1,805
Vehicle unit sales generally are reported worldwide on a "where sold" basis and
include sales of all Ford Motor Company units, as well as units manufactured by
Ford and sold to other manufacturers.
Prior period has been restated.
Excludes SFAS 133 effect & Unusual items
Ford Motor Company
AUTOMOTIVE GEOGRAPHIC AND COST OF SALES DETAIL
2002 Compared With 2001
GEOGRAPHIC DATA 1st Quarter
2002 2001 02 B/(W) Than 01
PBT (Mils.)
U.S. ($568) $825 ($1,393)
Canada/Mexico (29) 278 (307)
North America ($597) $1,103 ($1,700)
Europe 177 138 39
South America (79) (81) 2
Rest of World 97 (31) 128
Worldwide ($402) $1,129 ($1,531)
Net Income (Mils.)
U.S. ($409) $580 ($989)
Canada/Mexico (21) 174 (195)
North America ($430) $754 ($1,184)
Europe 117 88 29
South America (51) (53) 2
Rest of World 54 (41) 95
Worldwide ($310) $748 ($1,058)
Sales (Mils.)
U.S. $ 21,159 $ 22,099 ($940)
Canada/Mexico 1,983 1,558 425
North America $ 23,142 $ 23,657 ($515)
Europe 7,164 8,684 (1,520)
South America 412 610 (198)
Rest of World 1,603 1,699 (96)
Worldwide $ 32,321 $ 34,650 ($2,329)
COST OF SALES 1st Quarter
2002 2001 02 B/(W) Than 01
(Mils) (Mils) (Mils)
Total Costs and Expenses $ 32,412 $ 33,231 $ 819
Less: Depreciation 590 675 85
Amortization 572 726 154
Selling and Admin 2,282 2,461 179
Postretirement Exp.* 488 377 (111)
Net Cost of Sales $ 28,480 $ 28,992 $ 512
Memo: Gross Margin 11.9% 16.3% -4.4 pts
* Now includes Benefit Expenses from Total Pension, Retiree Health Cars, and
Retiree Life Insurance
Ford Motor Company
FIRST QUARTER 2002 DATA SHEET
2002 Compared with 2001
4th Qtr 2002 2001
2001 1st Qtr 1st Qtr Full year
Market Share Data (%)
U.S.
Car 17.8% 16.1% 17.7% 17.7%
Truck 27.0% 24.9% 27.4% 27.4%
Total 22.8% 20.7% 22.6% 22.8%
Europe
Car 10.3% 11.7% 11.4% 11.0%
Truck 8.1% 8.4% 9.1% 8.6%
Total 10.2% 11.3% 11.1% 10.7%
U.S. Total Marketing Coats (Ford/LM)
-- Variable and Fixed
(% of Gross Revenue) 16.7% 15.7% 12.2% 14.7%
U.S. Sales Mix (Ford/LM)
Fleet Sales (% of Total) 21% 28% 30% 25%
Red Carpet Lease (% of Total) 7% 14% 18% 15%
Red Carpet Lease (% of Retail) 9% 19% 26% 20%
U.S. Inventory (Days' Supply)
Car 63 59 59 63
Truck 59 66 75 59
Average 60 64 69 60
Avg. Portfolio Borrowing Rate
Ford Credit (%) 5.6% 5.4% 6.5% 6.1%
Worldwide Taxes
Effective Tax Rate 32.5% 32.5% a/ 32.5% 32.5%
Common and Class B
Shares Outstanding (Mils.)
Average - actual 1,810 1,807 1,840 1,820
Average - assuming full dilution 1,806 1,805 1,868 1,810
Period ended - actual 1,809 1,806 1,830 1,809
Common Stock price (per share)
High $18.94 $17.29 $31.37 $31.46
Low 14.93 13.90 23.75 14.93
Cash Dividends (per share) $ 0.15 $ 0.10 $ 0.30 $ 1.05
a/ Includes dividends from Ford Motor Capital Trust
Ford Motor Company
2002 NORTH AMERICAN PRODUCTION AND OVERSEAS SALES
2002 Planned
First Second
Quarter Quarter
(000) (000)
North American Production and Imports
Car 392 435
Truck 660 745
North American Production 1,052 1,180
Mexican Domestic Units Incl. Above Incl. Above
Imports (Volvo, Jaguar, Land Rover, Fiesta) 63 79
Total North America (Incl. Imports) 1,115 1,259
Overseas Vehicle Unit Sales 612 688
Ford Worldwide 1,727 1,947
Over/(Under)Prior
North America
Units:
. Issue 2 0
. Quarter 57 144
. Year (13) 58
Percentage:
. Issue 0% 0%
. Quarter 5% 13%
. Year (1)% 5%
Overseas
Units:
. Issue 0 0
. Quarter (57) 76
. Year (87) (28)
Percentage:
. Issue 0% 0%
. Quarter (9)% 12%
. Year (12)% (4)%
Worldwide
Units:
. Issue (2) 0
. Quarter 0 220
. Year (100) 30
Percentage:
. Issue 0% 0%
. Quarter 0% 13%
. Year (5)% 2%
Ford Motor Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
For the Periods Ended March 31, 2002 and 2001
(in millions)
First Quarter
2002 2001
(unaudited)
AUTOMOTIVE
Sales $ 32,321 $ 34,650
Costs and expenses
Cost of sales 30,074 30,815
Selling, administrative and other expenses 2,336 2,506
Total costs and expenses 32,410 33,321
Operating income/(loss) (89) 1,329
Interest income 112 255
Interest expense 362 367
Net interest expense (250) (112)
Equity in net loss of affiliated companies (61) (178)
Income/(loss) before income taxes - Automotive (400) 1,039
FINANCIAL SERVICES
Revenues 7,536 7,796
Costs and expenses
Interest expense 1,996 2,560
Depreciation 2,666 2,519
Operating and other expenses 1,559 1,437
Provision for credit and insurance losses 961 686
Total costs and expenses 7,182 7,202
Income before income taxes - Financial services 354 594
TOTAL COMPANY
Income/(loss) before income taxes (46) 1,633
Provision/(credit) for income taxes (26) 571
Income/(loss) before minority interests (20) 1,062
Minority interests in net income of subsidiaries 72 3
Income/(loss) before cumulative effect of change in
accounting principle (92) 1,059
Cumulative effect of change in accounting principle (708) -
Net income/(loss) $ (800) $ 1,059
Income/(loss) attributable to Common and Class B Stock
after preferred stock dividends $ (804) $ 1,055
Average number of shares of Common and Class B
Stock outstanding 1,807 1,840
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
Basic income
Income/(loss) before cumulative effect of change
in accounting principle $ (0.05) $ 0.58
Cumulative effect of change in accounting principle (0.40) -
Net income/(loss) $ (0.45) $ 0.58
Diluted income;
Income/(loss) before cumulative effect of change
in accounting principle $ (0.05) $ 0.58
Cumulative effect of change in accounting principle (0.40) -
Net income/(loss) $ (0.45) $ 0.56
Cash dividends $ 0.10 $ 0.30
Ford Motor company and Subsidiaries
CONSOLIDATED BALANCE SHEET
(in millions)
March 31, December 31,
2002 2001
(unaudited)
ASSETS
Automotive
Cash and cash equivalents $ 8,073 $ 4,079
Marketable securities 11,433 10,949
Total cash and marketable securities 19,506 15,028
Receivables 2,321 2,214
Inventories 7,068 6,191
Deferred income taxes 2,734 2,595
Other current assets 5,880 6,155
Current receivable from Financial Services 1,349 938
Total current assets 38,858 33,121
Equity in net assets of affiliated companies 2,399 2,450
Net property 33,537 33,121
Deferred income taxes 7,592 5,996
Goodwill 4,481 5,283
Other intangible assets 1,036 1,194
Other assets 6,514 7,154
Total Automotive assets 94,417 88,319
Financial Services
Cash and cash equivalents 7,947 3,139
Investments in securities 598 628
Finance receivables, net 103,905 111,958
Net investment in operating leases 46,486 47,262
Retained interest in sold receivables 9,575 12,548
Goodwill and other intangible assets 1,352 1,353
Other assets 7,656 7,624
Receivable from Automotive 3,712 3,712
Total Financial Services assets 181,231 188,224
Total assets $ 275,648 $ 276,543
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive
Trade payables $ 16,191 $ 15,677
Other payables 3,649 4,227
Accrued liabilities 24,306 24,340
Debt payable within one year 235 302
Total current liabilities 44,381 44,546
Long-term debt 13,681 13,492
Other liabilities 33,281 30,868
Deferred income taxes 275 362
Payable to Financial Services 3,712 3,712
Total Automotive liabilities 95,330 92,980
Financial Services
Payables 3,347 3,095
Debt 145,301 153,543
Deferred income taxes 9,922 9,703
Other liabilities and deferred income 7,308 7,826
Payable to Automotive 1,349 938
Total Financial Services liabilities 167,227 175,105
Company-obligated mandatorily redeemable preferred
and mandatorily redeemable convertible preferred
securities of a subsidiary trust holding solely
junior subordinated debentures of the Company 5,672 672
Stockholders' equity
Capital stock
Preferred Stock, par value $1.00 per share (aggregate
liquidation preference of $177 million) * *
Common Stock, par value $0.01 per share (1,837 million 18 18
shares issued)
Class B Stock, par value $0.01 per share (71 million 1 1
shares issued)
Capital in excess of par value of stock 6,008 6,001
Accumulated other comprehensive income (5,253) (5,913)
ESOP loan and treasury stock (2,873) (2,823)
Earnings retained for use in business 9,518 10,502
Total stockholders' equity 7,419 7,786
Total liabilities and stockholders' equity $ 275,648 $ 276,543
Ford Motor Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the periods Ended March 31, 2002 and 2001
(in millions)
First Quarter 2002 First Quarter 2001
Financial Financial
Automotive Services Automotive Services
(unaudited) (unaudited)
Cash and cash equivalents at January 1 $ 4,079 $ 3,139 $ 3,374 $ 1,477
Cash flows from operating activities before
securities trading 2,338 3,831 3,122 1,903
Net sales/(purchases) of trading securities (437) (25) 119 (6)
Net cash flows from operating activities 1,901 3,806 3,241 1,897
Cash flows from investing activities
Capital expenditures (1,537) (181) (1,357) (131)
Acquisitions of receivables and lease investments - (21,295) - (23,772)
Collections of receivables and lease investments - 15,318 - 13,249
Net acquisitions of daily rental vehicles - (794) - (1,118)
Purchases of securities (537) (185) (6,713) (204)
Sales and maturities of securities 452 139 8,053 199
Proceeds from sales of receivables and lease investments - 15,399 - 7,174
Net investing activity with Financial Services (427) - (674) -
Cash paid for acquisitions (37) - (122) (743)
Other - 228 342 9
Net (used in)/provided by investing activities (2,086) 8,629 (471) (5,337)
Cash flows from financing activities
Cash dividends (184) - (557) -
Net purchases of Common Stock (57) - (801) -
Proceeds from mandatorily redeemable convertible
preferred securities 4,900 - - -
Changes in short-term debt (93) (7,402) (28) (4,861)
Proceeds from issuance of other debt 107 8,143 201 14,386
Principal payments on other debt (60) (8,944) (76) (7,691)
Net financing activity with Automotive - 427 - 674
Other (5) (231) 84 44
Net cash (used in)/provided by financing activities 4,608 (8,007) (1,177) 2,552
Effect of exchange rate changes on cash (18) (31) (63) (111)
Net transactions with Automotive/Financial Services (411) 411 (951) 951
Net increase/(decrease) in cash and cash equivalents 3,994 4,808 579 (48)
Cash and cash equivalents at March 31 $ 8,073 $ 7,947 $ 3,953 $ 1,429
This information is provided by RNS
The company news service from the London Stock Exchange
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