SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report April 17, 1996
(Date of earliest event reported)
FORD MOTOR COMPANY
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-3950 38-0549190
(Commission File Number) (IRS Employer Identification No.)
The American Road, Dearborn, Michigan 48121
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 313-322-3000
<PAGE>
Item 5. Other Events.
- ---------------------
News release dated April 17, 1996, filed as Exhibit 20
to this Current Report on Form 8-K, is incorporated by
reference herein.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
- -----------------------------------------------------------------------------
EXHIBITS
--------
Designation Description Method of Filing
- ---------- ----------- ----------------
Exhibit 20 News release dated April 17, 1996. Filed with this Report
Exhibit 27.1 Financial Data Schedule -
Automotive Segment Filed with this Report
Exhibit 27.2 Financial Data Schedule -
Financial Services Segment Filed with this Report
Exhibit 27.3 Financial Data Schedule -
Conglomerate Total Filed with this Report
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized on the date indicated.
FORD MOTOR COMPANY
(Registrant)
Date: April 17, 1996 By:/s/Peter Sherry, Jr.
---------------------
Peter Sherry, Jr.
Assistant Secretary
<PAGE>
EXHIBIT INDEX
-------------
DESIGNATION DESCRIPTION PAGE
Exhibit 20 News release dated April 17, 1996
Exhibit 27.1 Financial Data Schedule - Automotive Segment
Exhibit 27.2 Financial Data Schedule - Financial Services Segment
Exhibit 27.3 Financial Data Schedule - Conglomerate Total
FORD
NEWS FOR IMMEDIATE RELEASE
Contact:
Media Inquiries: Broadcast Media: Stockholder Inquiries:
Christian Vinyard Lin Cummins (313) 845-8540
(313) 322-9600 (313) 322-9600
FORD EARNS $653 MILLION IN FIRST QUARTER
DEARBORN, Mich., April 17 -- Financial Services posted
record earnings for the first quarter of 1996, while automotive
operations reflected the impact of lower production volumes from
dealer inventory rebalancing, high-volume product launches in
North America and Europe, and lower overseas results primarily in
Brazil.
In the first quarter, Ford earned $653 million, or 53 cents
per fully-diluted share of common and Class B stock. This
compares with $1.55 billion, or $1.28 per fully-diluted share in
the first quarter of 1995. Net income from automotive operations
was $142 million, and net income from financial services was $511
million.
"We've nearly completed an important series of high-volume
launches that will leave our product line-up the strongest it's
ever been and the most attractive for our customers," said
Chairman and Chief Executive Officer Alex Trotman. "At the same
time, our cost reduction efforts will help improve our financial
results in the coming quarters."
Last July, Ford outlined its lower expectations for the last
half of 1995 and the first quarter of 1996. "During this period,
our profits declined, but assuming that moderate economic growth
continues in Ford's major markets, the remainder of 1996 should
see our financial results significantly improving," Trotman said.
<PAGE>
-2-
SUMMARY OF FIRST QUARTER 1996 COMPARED WITH FIRST-QUARTER 1995
Overview
- --------
- - Total earnings were $653 million, compared with $1.55 billion in
the first quarter of 1995.
- - Fully-diluted earnings were 53 cents per share, compared with $1.28
per share.
- - Worldwide sales and revenues were $36.3 billion, compared with
$34.8 billion.
- - Stockholders' equity was $24.5 billion, compared with $23.5 billion
a year ago.
Automotive
- ----------
- - Net income from worldwide automotive operations was $142 million,
compared with $1.14 billion. After-tax return on sales was 0.5
percent, compared with four percent.
- - Net income from U.S. automotive operations was $48 million,
compared with $825 million.
- - Net income from automotive operations outside the U.S. was $94
million, compared with $316 million.
- - Worldwide vehicle unit sales were 1,638,000, compared with
1,770,000 units.
- - Combined car and truck share in the U.S. was 25.8 percent, compared
with 26.6 percent.
- - Combined car and truck share in Europe was 12.2 percent, compared
with 12.5 percent.
Financial Services Group
- ------------------------
- - Financial Services Group earned $511 million, a first-quarter
record, compared with $409 million in 1995.
- - Ford Credit earned $293 million, compared with $288 million.
- - Associates First Capital Corporation, together with the
international affiliates it manages, earned $192 million,
compared with $168 million.
- - USL Capital earned $40 million, compared with $26 million.
Automotive Balance Sheet
- ------------------------
- - Cash and marketable securities were $12.9 billion, compared with
$13.2 billion a year ago.
- - Debt was $7.2 billion, compared with $7.1 billion.
- - Net cash was $5.7 billion, compared with $6.1 billion.
- - Capital spending was $1.8 billion, compared with $2.1 billion in
the first quarter a year ago.
<PAGE>
-3-
AUTOMOTIVE OPERATIONS
Ford's first-quarter income from worldwide operations was $142
million, down about $1 billion from the first quarter of
1995. U.S. automotive operations earned $48 million, down
$777 million from a year ago. The decline stems from lower
production volumes from dealer inventory rebalancing and
costs associated with high-volume product launches.
Outside the U.S., automotive operations earned $94 million, down
$222 million from a year ago. In Europe, Ford earned $73
million, down $92 million from the same period last year.
The decline in Europe reflects costs of launching new high-
volume products.
Results in Brazil were impacted by the lack of a domestically-
produced small car. Introduction of the Ford Fiesta, produced in
Brazil, is scheduled for May.
Customer responses to new products throughout the world were
strong. "The initial success of our highest-volume products
in Europe and North America -- the new Ford Fiesta and the
new F-Series -- is nothing short of sensational," Trotman
said. The Ford Explorer, with 14 consecutive monthly
records, also set a record for the first quarter.
Car sales in large-volume segments also showed strength.
"Despite the planned reduction in daily rental volumes,
Taurus was the best-selling car in America during the first
quarter of 1996 as well as for the first half of the 1996
model year and all of 1995," Trotman noted. The Ford
Contour had its best month ever in March, and combined sales
for Contour and the Mercury Mystique set records both for
March and the first quarter.
On April 12, Ford and Mazda announced an agreement to strengthen
their relationship, with Ford increasing its equity position
in Mazda from 24.5 to 33.4 percent.
FINANCIAL SERVICES
Financial Services Group earned $511 million, a record for any
first quarter. These results compare with earnings of $409
million in the first quarter of 1995.
"Once again, our world-class Financial Services Group set another
record in the first quarter," Trotman said. "First-quarter
profits were up year-to-year at all businesses in the
group."
<PAGE>
-4-
Ford Credit earned $293 million, an increase of $5 million from
the prior year. The Associates reported a record first-
quarter profit of $192 million, up 14 percent from $168
million earned in last year's first quarter. USL Capital
posted a first-quarter record of $40 million, an increase of
54 percent from the $26 million posted in 1995's first
quarter.
In February, Associates First Capital Corporation filed a
registration statement with the Securities and Exchange
Commission for an initial public offering of up to 19.8
percent of its common stock. The Associates is a leading
diversified finance company with assets of more than $40
billion. Ford purchased The Associates in 1989.
"The partial sale of The Associates represents an important
strategic decision for Ford," Trotman said. "The actions
that we are taking will establish a market value for this
important Ford asset and will strengthen Ford's already
strong balance sheet."
Ford also is continuing to study the partial or complete sale of
USL Capital.
THE STRENGTHS OF FORD
Looking ahead, Trotman said, "Our strategies are the right ones
for this time in our history. Our product line around the
world is being revitalized, and our cost-cutting efforts
will soon begin to pay off."
"We do not manage this business for quarter-to-quarter results,"
Trotman said. Over the last 10, 20 and 40 years, Ford's
average annual total return to shareholders has exceeded the
major stock indexes as well as the performance of the other
U.S. automakers.
"The best time to make fundamental change is when a company's
financial position is strong," Trotman said. "Our balance
sheet is solid, our dividend is the most attractive in the
industry, our pension plans are fully funded, and our credit
rating is the highest among U.S. automakers. The automotive
and financial services businesses always have been highly
competitive, and will continue to be so in the future. But,
with the fundamental changes we have made and are making,
Ford is positioning itself to become an even stronger
competitor," he said.
# # #
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
HIGHLIGHTS
----------
First Quarter
-----------------------
1996 1995
------- -------
(unaudited)
<S> <C> <C>
Worldwide vehicle unit sales of
cars and trucks (in thousands)
- - United States 940 1,087
- - Outside United States 698 683
----- -----
Total 1,638 1,770
===== =====
Sales and revenues (in millions)
- - Automotive $29,333 $28,601
- - Financial Services 6,928 6,182
------- -------
Total $36,261 $34,783
======= =======
Net income (in millions)
- - Automotive $ 142 $ 1,141
- - Financial Services 511 409
------- -------
Total $ 653 $ 1,550
======= =======
Capital expenditures (in millions)
- - Automotive $ 1,789 $ 2,131
- - Financial Services 113 67
------- -------
Total $ 1,902 $ 2,198
======= =======
Stockholders' equity at March 31
- - Total (in millions) $24,540 $23,552
- - After-tax return on Common and
Class B stockholders' equity 10.7% 30.9%
Automotive cash, cash equivalents
and marketable securities at
March 31 (in millions) $12,937 $13,254
Automotive debt at March 31
(in millions) $ 7,175 $ 7,102
Automotive after-tax return on sales 0.5% 4.0%
Shares of Common and Class B Stock
(in millions)
- - Average number outstanding 1,168 1,025
- - Number outstanding at March 31 1,175 1,027
AMOUNTS PER SHARE OF COMMON AND
CLASS B STOCK AFTER PREFERRED
STOCK DIVIDENDS
Income $ 0.54 $ 1.44
Income assuming full dilution
- - Automotive $ 0.11 $ 0.94
- - Financial Services 0.42 0.34
------- -------
Total $ 0.53 $ 1.28
======= =======
Cash dividends $ 0.35 $ 0.26
</TABLE>
FS-1
<PAGE>
<TABLE>
<capiton>
Ford Motor Company and Subsidiaries
VEHICLE UNIT SALES
------------------
For the Periods Ended March 31, 1996 and 1995
(in thousands)
First Quarter
-----------------------
1996 1995
------- -------
(unaudited)
<S> <C> <C>
North America
United States
Cars 378 509
Trucks 562 578
----- -----
Total United States 940 1,087
Canada 50 65
Mexico 12 11
----- -----
Total North America 1,002 1,163
Europe
Germany 118 118
Britain 118 104
Italy 56 52
France 51 44
Spain 48 48
Other countries 84 77
----- -----
Total Europe 475 443
Other international
Brazil 47 62
Australia 32 31
Taiwan 31 28
Japan 16 16
Argentina 16 10
Other countries 19 17
----- -----
Total other international 161 164
----- -----
Total worldwide vehicle unit sales 1,638 1,770
===== =====
</TABLE>
Vehicle unit sales are reported worldwide on a "where sold" basis and
include sales of all Ford-badged units, as well as units manufactured
by Ford and sold to other manufacturers.
FS-2
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
--------------------------------
For the Periods Ended March 31, 1996 and 1995
(in millions)
First Quarter
-------------------------
1996 1995
-------- --------
(unaudited)
<S> <C> <C>
AUTOMOTIVE
Sales $29,333 $28,601
Costs and expenses (Note 2)
Costs of sales 27,546 25,431
Selling, administrative and other expenses 1,472 1,388
------- -------
Total costs and expenses 29,018 26,819
Operating income 315 1,782
Interest income 184 207
Interest expense 172 166
------- -------
Net interest income 12 41
Equity in net (loss)/income of affiliated companies (52) 20
Net expense from transactions with Financial Services (20) (23)
------- -------
Income before income taxes - Automotive 255 1,820
FINANCIAL SERVICES
Revenues 6,928 6,182
Costs and expenses
Interest expense 2,421 2,167
Depreciation 1,691 1,521
Operating and other expenses 1,428 1,336
Provision for credit and insurance losses 576 422
------- -------
Total costs and expenses 6,116 5,446
Net revenue from transactions with Automotive 20 23
------- -------
Income before income taxes - Financial Services 832 759
------- -------
TOTAL COMPANY
Income before income taxes 1,087 2,579
Provision for income taxes 413 988
------- -------
Income before minority interests 674 1,591
Minority interests in net income of subsidiaries 21 41
------- -------
Net income $ 653 $ 1,550
======= =======
Income attributable to Common and Class B Stock
after preferred stock dividends $ 634 $ 1,478
Average number of shares of Common and Class B
Stock outstanding 1,168 1,025
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
Income $ 0.54 $ 1.44
Income assuming full dilution $ 0.53 $ 1.28
Cash dividends $ 0.35 $ 0.26
</TABLE>
The accompanying notes are part of the financial statements.
FS-3
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
--------------------------
(in millions)
March 31, December 31,
1996 1995
----------- ------------
(unaudited)
<S> <C> <C>
ASSETS
Automotive
Cash and cash equivalents $ 6,074 $ 5,750
Marketable securities 6,863 6,656
-------- --------
Total cash, cash equivalents and marketable securities 12,937 12,406
Receivables 3,463 3,321
Inventories (Note 3) 7,182 7,162
Deferred income taxes 2,952 2,709
Other current assets 2,206 1,483
Net current receivable from Financial Services 134 200
-------- --------
Total current assets 28,874 27,281
Equity in net assets of affiliated companies 2,157 2,248
Net property 31,446 31,273
Deferred income taxes 4,584 4,802
Other assets 7,285 7,168
-------- --------
Total Automotive assets 74,346 72,772
Financial Services
Cash and cash equivalents 2,066 2,690
Investments in securities 4,470 4,553
Net receivables and lease investments 153,467 149,694
Other assets 13,655 13,574
-------- --------
Total Financial Services assets 173,658 170,511
-------- --------
Total assets $248,004 $243,283
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive
Trade payables $ 11,635 $ 11,260
Other payables 1,704 1,976
Accrued liabilities 13,584 13,392
Income taxes payable 351 316
Debt payable within one year 1,676 1,832
-------- --------
Total current liabilities 28,950 28,776
Long-term debt 5,499 5,475
Other liabilities 27,631 25,677
Deferred income taxes 1,206 1,186
-------- --------
Total Automotive liabilities 63,286 61,114
Financial Services
Payables 3,479 5,476
Debt 145,628 141,317
Deferred income taxes 4,123 3,831
Other liabilities and deferred income 6,133 6,116
Net payable to Automotive 134 200
-------- --------
Total Financial Services liabilities 159,497 156,940
Company-obligated mandatorily redeemable preferred securities of
a subsidiary trust (aggregate principal amount of $632 million) 681 682
Stockholders' equity
Capital stock
Preferred Stock, par value $1.00 per share (aggregate liquidation
preference of $833 million and $1,042 million) * *
Common Stock, par value $1.00 per share (1,105 and 1,089 million shares issued) 1,105 1,089
Class B Stock, par value $1.00 per share (71 million shares issued) 71 71
Capital in excess of par value of stock 5,129 5,105
Foreign currency translation adjustments and other 322 594
Earnings retained for use in business 17,913 17,688
-------- --------
Total stockholders' equity 24,540 24,547
-------- --------
Total liabilities and stockholders' equity $248,004 $243,283
======== ========
</TABLE>
- - - - - -
*Less than $1 million
The accompanying notes are part of the financial statements.
FS-4
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
----------------------------------------------
For the Periods Ended March 31, 1996 and 1995
(in millions)
First Quarter 1996 First Quarter 1995
---------------------- ---------------------
Financial Financial
Automotive Services Automotive Services
---------- --------- ---------- --------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Cash and cash equivalents at January 1 $ 5,750 $ 2,690 $ 4,481 $ 1,739
Cash flows from operating activities before securities trading 2,916 3,014 3,650 3,284
Net (purchases)/sales of trading securities (197) 281 4,289 324
------- -------- ------- --------
Net cash flows from operating activities 2,719 3,295 7,939 3,608
Cash flows from investing activities
Capital expenditures (1,789) (113) (2,131) (67)
Acquisitions of receivables and lease investments - (28,164) - (23,988)
Collections of receivables and lease investments - 20,949 - 15,839
Net acquisitions of daily rental vehicles - (989) - (781)
Purchases of securities (10) (3,433) (18) (1,818)
Sales and maturities of securities 0 3,217 9 1,337
Proceeds from sales of receivables - 1,775 - 0
Net investing activity with Financial Services (3) - (174) -
Other (97) 209 (442) (127)
------- -------- ------- --------
Net cash used in investing activities (1,899) (6,549) (2,756) (9,605)
Cash flows from financing activities
Cash dividends (428) - (338) -
Issuance of Common Stock 40 - 96 -
Changes in short-term debt (158) 34 217 2,408
Proceeds from issuance of other debt 14 6,126 0 6,674
Principal payments on other debt (3) (3,462) (207) (3,239)
Net financing activity with Automotive - 3 - 174
Other 1 43 6 190
------- -------- ------- --------
Net cash (used in)/provided by financing activities (534) 2,744 (226) 6,207
Effect of exchange rate changes on cash (28) (48) 178 163
Net transactions with Automotive/Financial Services 66 (66) 317 (317)
------- -------- ------- --------
Net increase/(decrease) in cash and cash equivalents 324 (624) 5,452 56
------- -------- ------- --------
Cash and cash equivalents at March 31 $ 6,074 $ 2,066 $ 9,933 $ 1,795
======= ======== ======= ========
</TABLE>
The accompanying notes are part of the financial statements.
FS-5
<PAGE>
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(unaudited)
1. Financial Statements - The financial data presented herein are
unaudited, but in the opinion of management reflect those
adjustments necessary for a fair presentation of such
information. Results for interim periods should not be
considered indicative of results for a full year. Reference
should be made to the financial statements contained in the
registrant's Annual Report on Form 10-K (the "10-K Report") for
the year ended December 31, 1995. For purposes hereof, "Ford" or
the "Company" means Ford Motor Company and its majority owned
subsidiaries unless the context requires otherwise. Certain
amounts for prior periods have been reclassified.
2. Selected Automotive costs and expenses are summarized as follows
(in millions):
<TABLE>
<CAPTION>
First Quarter
---------------------------
1996 1995
----------- ---------
<S> <C> <C>
Depreciation $636 $589
Amortization 764 712
</TABLE>
3. Automotive inventories are summarized as follows (in millions):
----------------------
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
------------ ------------
<S> <C> <C>
Raw materials, work in process and supplies $3,564 $3,717
Finished products 3,618 3,445
------ ------
Total inventories $7,182 $7,162
====== ======
U.S. inventories $2,902 $2,662
</TABLE>
FS-6
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Automotive Segment - This schedule contains summary financial information
extracted from Ford's Current Report on Form 8-K dated April 17, 1996 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000037996
<NAME> FORD MOTOR COMPANY
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 6,074
<SECURITIES> 6,863
<RECEIVABLES> 3,463
<ALLOWANCES> 89
<INVENTORY> 7,182
<CURRENT-ASSETS> 28,874
<PP&E> 70,337
<DEPRECIATION> 38,891
<TOTAL-ASSETS> 74,346
<CURRENT-LIABILITIES> 28,950
<BONDS> 5,499
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 29,333
<TOTAL-REVENUES> 29,333
<CGS> 27,546
<TOTAL-COSTS> 29,018
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 172
<INCOME-PRETAX> 255
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Financial Services Segment - This schedule contains summary financial
information extracted from Ford's Current Report on Form 8-K dated April
17, 1996 and is qualified in its entirety by reference to such financial
statements. The error message indicated on this FDS is a result of the
EDGAR system's inability to accept multiple Article 5 Financial Data Schedules.
Accordingly, the error message should be ignored.
</LEGEND>
<CIK> 0000037996
<NAME> FORD MOTOR COMPANY
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 2,066
<SECURITIES> 4,470
<RECEIVABLES> 153,467
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 173,658
<CURRENT-LIABILITIES> 0
<BONDS> 145,628
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 6,928
<TOTAL-REVENUES> 6,928
<CGS> 0
<TOTAL-COSTS> 6,116
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 576
<INTEREST-EXPENSE> 2,421
<INCOME-PRETAX> 832
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> CT
<LEGEND>
Conglomerate Totals - This schedule contains summary financial information
extracted from Ford's Current Report on Form 8-K dated April 17, 1996 and
is qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000037996
<NAME> FORD MOTOR COMPANY
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> MAR-31-1996
<TOTAL-ASSETS> 248,004
<COMMON> 1,176
0
0
<OTHER-SE> 23,364
<TOTAL-LIABILITY-AND-EQUITY> 248,004
<TOTAL-REVENUES> 36,261
<INCOME-TAX> 413
<INCOME-CONTINUING> 653
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 653
<EPS-PRIMARY> 0.54
<EPS-DILUTED> 0.53
</TABLE>
