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 October 16, 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 October 16, 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 15 Letter of Coopers & Lybrand L.L.P.
Independent Public Accountants,
dated October 16, 1996 relating
to Financial Information Filed with this Report
Exhibit 20 News release dated
October 16, 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
Exhibit 99 Report of Coopers & Lybrand L.L.P.
Independent Public Accounts, dated
October 16, 1996, relating to
interim financial statements of
Ford Motor Company and Subsidiaries
for the three-month and nine-month
periods ended September 30, 1996. 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: October 16, 1996 By:/s/Peter Sherry, Jr.
---------------------------
Peter Sherry, Jr.
Assistant Secretary
<PAGE>
EXHIBIT INDEX
-------------
DESIGNATION DESCRIPTION PAGE
- ----------- ----------- ----
Exhibit 15 Letter of Coopers & Lybrand L.L.P. Independent
Public Accountants, dated October 16,
1996 relating to Financial Information
Exhibit 20 News release dated October 16, 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
Exhibit 99 Report of Coopers & Lybrand L.L.P. Independent
Public Accounts, dated October 16, 1996, relating
to interim financial statements of Ford Motor
Company and Subsidiaries for the three-month and
nine-month periods ended September 30, 1996.
<PAGE>
Exhibit 15
Coopers & Lybrand L.L.P.
Ford Motor Company
The American Road
Dearborn, Michigan
Re: Ford Motor Company Registration Statement Nos. 2-95018, 2-95020, 33-9722,
33-14951, 33-19036, 33-36043, 33-36061, 33-39402, 33-50087, 33-50194,
33-50238, 33-54304, 33-54344, 33-54348, 33-54275, 33-54283, 33-54735,
33-54737, 33-55847, 33-56785, 33-58255, 33-58785, 33-58861, 33-61107,
33-62227, 33-64605; 33-64607, 333-02401 and 333-02735 on Form S-8; 2-42133,
33-32641, 33-40638, 33-43085, 33-55474, 33-55171 and 33-64247 on Form S-3
We are aware that our report dated October 16, 1996 accompanying the unaudited
interim financial information of Ford Motor Company for the periods ended
September 30, 1996 and 1995 and included in the Ford Motor Company Current
Report on Form 8-K dated October 16, 1996 will be incorporated by reference in
the Registration Statements. Pursuant to Rule 436(c) under the Securities Act of
1933, this report should not be considered a part of the Registration Statements
prepared or certified by us within the meaning of Sections 7 and 11 of that Act.
/s/Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
Detroit, Michigan
October 16, 1996
Exhibit 20
Global News Public Affairs
Ford Motor Company
The American Road
Room 904
Dearborn, MI 48121
Telephone:(313)322-9600
Fax:(313)845-0570
IMMEDIATE RELEASE
Contact: Media Inquiries Broadcast Media Stockholder Inquiries
Christian Vinyard David Caplan (313) 845-8540
(313) 322-9600 (313) 322-9600
Ford Earns $686 Million in Third Quarter;
U.S. Automotive Profit Improvement Continues
DEARBORN, Mich., Oct. 16 -- Ford Motor Company earned $686 million in the
third quarter of 1996, up $329 million from the same period last year,
reflecting continued improvement in U.S. automotive operations, along with
another quarterly record from financial services. Fully diluted earnings were 56
cents per share of common and Class B stock, compared with 27 cents for the
third quarter of 1995.
The total results include the net favorable effect of two one-time actions
of $37 million, or three cents a share.
"Improvements in our U.S. automotive operations continue," said Alex
Trotman, chairman and chief executive officer. "Outside the U.S., results
continue to reflect challenges in several key regions, particularly Europe and
South America."
U.S. AUTOMOTIVE OPERATIONS GAIN
For the third quarter, worldwide automotive operations earned $15 million,
compared with a loss of $201 million last year. Improved automotive results in
the U.S. were offset partially by increased losses in other markets.
U.S. automotive operations earned a third-quarter record of $634 million,
up $447 million from 1995. Unit volume was up slightly from last year.
<PAGE>
-2-
Higher earnings reflect the strong acceptance of new products like the Ford
F-Series and Expedition that improved the mix of products sold and the
continuing focus on cost reductions, particularly material costs. The results
also include a one-time charge of $39 million for early retirements for U.S.
salaried employees.
Outside the U.S., losses from automotive operations were $619 million,
compared with a loss of $388 million last year.
In Europe, Ford lost $472 million, compared with a loss of $320 million
last year, reflecting costs associated with launching new products, adverse
vehicle mix and volume, and continued high marketing costs. In Europe,
high-volume launches are largely completed. Ford continues to focus on cost
reductions, and new products are coming to market that will strengthen the
line-up. Among these is the Ka, a new small car that will compete in a growing
segment.
The innovative Ka was developed with high investment efficiency in about 24
months and is produced in Valencia, Spain. Within the next month, Ka will go on
sale in Europe's major markets. Response from both dealers and automotive news
media has been strongly favorable.
In South America, Ford lost $226 million in the third quarter, compared
with a loss of $102 million in 1995. Most of the losses stem from Brazil. On
Sept. 9, Ford indicated that losses in Brazil in the second half of 1996 would
be larger than those of the first half due to lower market share and a longer
and more costly launch process following the dissolution of Autolatina. In 1997,
Ford plans to introduce the Ranger pickup and the Ka to the Brazilian market
which, along with the new Fiesta and Escort, will strengthen the product line.
FINANCIAL SERVICES POSTS ANOTHER RECORD
The Financial Services Group posted record earnings for the third quarter
of $671 million, up from $558 million earned in the third quarter of 1995. The
quarterly results include a one-time gain of $76 million from the sale of assets
of USL Capital. Without the one-time gain, profits from Financial Services still
set a third-quarter record.
Ford Credit earned $299 million, compared with $357 million in last year's
third quarter. The decline reflects an increase in credit losses, consistent
with the consumer finance industry.
<PAGE>
-3-
The Associates reported third-quarter earnings of $230 million, a record
for any quarter. As the majority shareholder, Ford's share was $186 million. The
Associates third-quarter earnings improved 17 percent from the $197 million
earned in last year's third quarter.
The USL Capital asset sale and the initial public offering of about 20
percent of Associates First Capital Corporation this year raised more than $3
billion in cash to further strengthen the Financial Services Group's balance
sheet.
BRIGHTER PROSPECTS AHEAD
"As more efficiencies are realized, automotive results for the fourth
quarter should be stronger than last year, despite expected additional charges
of $300-400 million for early retirement programs," Trotman said. "We expect
sales volumes will be higher and margins will continue to improve."
"There's still much to do," Trotman said. "We've made solid progress, and
we're becoming a leaner, faster company. As we continue to reduce costs, and as
more high-quality products are launched, automotive profitability should grow,
increasing value for both customers and shareholders," he added.
"With the recently announced streamlining of our components business and
product development, our senior management can further accelerate the actions
that will build on the momentum to achieve our goals for quality, cost and
speed," Trotman noted.
Ford expects U.S. industry volumes for the full year to be about 15.5
million cars and trucks, up from last year's 15.1 million. In Western Europe,
industry sales for 1996 are expected to be about 14.2 million units, compared
with 13.4 million in 1995.
Looking forward, Ford expects moderate economic growth to continue in its
major markets which will allow for stable industry sales volumes.
# # #
Oct. 16, 1996
<PAGE>
-4-
SUMMARY OF THIRD-QUARTER 1996 COMPARED WITH THIRD-QUARTER 1995
Overview
- --------
- - Total earnings were $686 million, compared with $357 million in the third
quarter of 1995.
- - Fully diluted earnings were 56 cents per share, compared with 27 cents per
share.
- - Worldwide sales and revenues were $34 billion, compared with $31.4 billion.
- - Stockholders' equity was $26.2 billion, compared with $25 billion.
Automotive
- ----------
- - Worldwide automotive operations earned $15 million, compared with a loss of
$201 million.
- - Net income from U.S. automotive operations was a third-quarter record $634
million, compared with $187 million.
- - Automotive operations outside the U.S. lost $619 million, compared with a
loss of $388 million last year. In Europe, Ford posted a loss of $472
million, compared with a loss of $320 million last year.
- - Worldwide vehicle unit sales were 1,452,000, compared with 1,435,000 units.
- - Combined car and truck share in the U.S. was 24.5 percent, compared with
24.8 percent.
- - Combined car and truck share in Europe was 11.8 percent, compared with 12.8
percent.
Financial Services Group
- ------------------------
- - Financial Services Group earned a record $671 million, including a one-time
net gain of $76 million related to the sale of assets of USL Capital.
Without the one-time gain, earnings were a record $595 million.
Third-quarter results for 1995 were $558 million.
- - Ford Credit earned $299 million, compared with $357 million.
- - The Associates earned an all-time record of $230 million, compared with $197
million.
Automotive Balance Sheet
- ------------------------
- - Net cash was $5.7 billion, compared with $5.4 billion.
- - Cash and marketable securities were $13 billion, compared with $12.2
billion.
- - Debt was $7.3 billion, compared with $6.8 billion.
- - Capital spending was $2.4 billion, compared with $2.3 billion a year ago.
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
HIGHLIGHTS
----------
Third Quarter Nine Months
-------------------------- --------------------------
1996 1995 1996 1995
-------- -------- -------- --------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Worldwide vehicle unit sales of
cars and trucks (in thousands)
- - United States 884 869 2,891 3,038
- - Outside United States 568 566 2,009 1,978
----- ----- ----- -----
Total 1,452 1,435 4,900 5,016
===== ===== ===== =====
Sales and revenues (in millions)
- - Automotive $26,459 $24,437 $ 86,518 $ 82,899
- - Financial Services 7,501 6,981 21,640 19,691
------- ------- -------- --------
Total $33,960 $31,418 $108,158 $102,590
======= ======= ======== ========
Net income/(loss) (in millions)
- - Automotive $ 15 $ (201) $ 1,265 $ 2,040
- - Financial Services 671* 558 1,977* 1,439
------- ------- -------- --------
Total $ 686 $ 357 $ 3,242 $ 3,479
======= ======= ======== ========
Capital expenditures (in millions)
- - Automotive $ 2,358 $ 2,254 $ 5,926 $ 6,204
- - Financial Services 149 76 349 223
------- ------- -------- --------
Total $ 2,507 $ 2,330 $ 6,275 $ 6,427
======= ======= ======== ========
Stockholders' equity at September 30
- - Total (in millions) $26,152 $24,955 $ 26,152 $ 24,955
- - After-tax return on Common and
Class B stockholders' equity 10.5% 5.4% 17.4% 20.9%
Automotive cash and marketable
securities at September 30 (in millions) $12,960 $12,241 $ 12,960 $ 12,241
Automotive debt at September 30
(in millions) $ 7,296 $ 6,829 $ 7,296 $ 6,829
Automotive after-tax return on sales 0.1% ** 1.5% 2.5%
Shares of Common and Class B Stock
(in millions)
- - Average number outstanding 1,183 1,083 1,177 1,049
- - Number outstanding at September 30 1,185 1,090 1,185 1,090
AMOUNTS PER SHARE OF COMMON AND
CLASS B STOCK AFTER PREFERRED
STOCK DIVIDENDS
Income/(loss) assuming full dilution
- - Automotive $ 0.00 $ (0.19) $ 1.02 $ 1.65
- - Financial Services 0.56 0.46 1.64 1.20
------- ------- -------- --------
Total $ 0.56 $ 0.27 $ 2.66 $ 2.85
======= ======= ======== ========
Cash dividends $ 0.385 $ 0.31 $ 1.085 $ 0.88
</TABLE>
- - - - - -
*Results in third quarter 1996 and nine months 1996 included a gain on
disposition of substantially all of USL Capital's assets ($76 million and $95
million, respectively); results in nine months 1996 included a write-down
relating to Ford's investment in Budget Rent a Car Corporation ($437 million)
**Results in this period were a loss
FS-1
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
VEHICLE UNIT SALES
------------------
For the Periods Ended September 30, 1996 and 1995
(in thousands)
Third Quarter Nine Months
---------------------------- --------------------------
1996 1995 1996 1995
---------- ---------- ---------- --------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
North America
United States
Cars 387 377 1,228 1,333
Trucks 497 492 1,663 1,705
----- ----- ----- -----
Total United States 884 869 2,891 3,038
Canada 52 46 174 178
Mexico 13 3 39 21
----- ----- ----- -----
Total North America 949 918 3,104 3,237
Europe
Britain 100 105 376 371
Germany 84 93 330 325
France 42 40 147 124
Italy 30 31 129 139
Spain 27 33 114 129
Other countries 67 58 236 212
----- ----- ----- -----
Total Europe 350 360 1,332 1,300
Other international
Brazil 49 45 142 153
Australia 40 41 107 107
Taiwan 20 27 72 90
Japan 13 14 41 44
Argentina 12 13 43 34
Other countries 19 17 59 51
----- ----- ----- -----
Total other international 153 157 464 479
----- ----- ----- -----
Total worldwide vehicle unit sales 1,452 1,435 4,900 5,016
===== ===== ===== =====
</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 September 30, 1996 and 1995
(in millions)
Third Quarter Nine Months
-------------------------- --------------------------
1996 1995 1996 1995
-------- -------- -------- --------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
AUTOMOTIVE
Sales $26,459 $24,437 $86,518 $82,899
Costs and expenses (Note 2)
Costs of sales 24,926 23,271 79,941 75,154
Selling, administrative and other expenses 1,514 1,370 4,619 4,393
------- ------- ------- -------
Total costs and expenses 26,440 24,641 84,560 79,547
Operating income/(loss) 19 (204) 1,958 3,352
Interest income 188 171 589 594
Interest expense 155 151 537 491
------- ------- ------- -------
Net interest income 33 20 52 103
Equity in net loss of affiliated companies (68) (190) (43) (151)
Net expense from transactions with
Financial Services (25) (42) (62) (101)
------- ------- ------- -------
(Loss)/income before income taxes - Automotive (41) (416) 1,905 3,203
FINANCIAL SERVICES
Revenues 7,501 6,981 21,640 19,691
Costs and expenses
Interest expense 2,458 2,437 7,318 6,948
Depreciation 1,768 1,715 5,134 4,836
Operating and other expenses 1,559 1,421 4,522 4,049
Provision for credit and insurance losses 708 472 1,894 1,337
Asset write-downs and dispositions (Note 3) (235) - 437 -
------- ------- ------- -------
Total costs and expenses 6,258 6,045 19,305 17,170
Net revenue from transactions with Automotive 25 42 62 101
Gain on sale of The Associates'
common stock (Note 4) - - 650 -
------- ------- ------- -------
Income before income taxes - Financial Services 1,268 978 3,047 2,622
------- ------- ------- -------
TOTAL COMPANY
Income before income taxes 1,227 562 4,952 5,825
Provision for income taxes 474 157 1,581 2,198
------- ------- ------- -------
Income before minority interests 753 405 3,371 3,627
Minority interests in net income of subsidiaries 67 48 129 148
------- ------- ------- -------
Net income $ 686 $ 357 $ 3,242 $ 3,479
======= ======= ======= =======
Income attributable to Common and Class B Stock
after preferred stock dividends $ 670 $ 302 $ 3,191 $ 3,283
Average number of shares of Common and Class B
Stock outstanding 1,183 1,083 1,177 1,049
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
Income $ 0.57 $ 0.28 $ 2.71 $ 3.13
Income assuming full dilution $ 0.56 $ 0.27 $ 2.66 $ 2.85
Cash dividends $ 0.385 $ 0.31 $ 1.085 $ 0.88
</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)
September 30, December 31,
1996 1995
------------- ------------
(unaudited)
<S> <C> <C>
ASSETS
Automotive
Cash and cash equivalents $ 3,461 $ 5,750
Marketable securities 9,499 6,656
-------- --------
Total cash and marketable securities 12,960 12,406
Receivables 3,525 3,321
Inventories (Note 5) 7,671 7,162
Deferred income taxes 3,287 2,709
Other current assets 3,526 1,483
Net current receivable from Financial Services 109 200
-------- --------
Total current assets 31,078 27,281
Equity in net assets of affiliated companies 2,484 2,248
Net property 32,605 31,273
Deferred income taxes 4,703 4,802
Other assets 7,196 7,168
-------- --------
Total Automotive assets 78,066 72,772
Financial Services
Cash and cash equivalents 5,295 2,690
Investments in securities 3,594 4,553
Net receivables and lease investments 158,386 149,694
Other assets 13,160 13,574
-------- --------
Total Financial Services assets 180,435 170,511
-------- --------
Total assets $258,501 $243,283
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive
Trade payables $ 11,729 $ 11,260
Other payables 1,876 1,976
Accrued liabilities 17,058 13,392
Income taxes payable 600 316
Debt payable within one year 2,125 1,832
-------- --------
Total current liabilities 33,388 28,776
Long-term debt 5,171 5,475
Other liabilities 26,497 25,677
Deferred income taxes 1,468 1,186
-------- --------
Total Automotive liabilities 66,524 61,114
Financial Services
Payables 3,927 5,476
Debt 148,320 141,317
Deferred income taxes 4,206 3,831
Other liabilities and deferred income 8,583 6,116
Net payable to Automotive 109 200
-------- --------
Total Financial Services liabilities 165,145 156,940
Company-obligated mandatorily redeemable preferred securities of
a subsidiary trust holding solely junior subordinated debentures
of the Company (Note 6) 680 682
Stockholders' equity
Capital stock
Preferred Stock, par value $1.00 per share (aggregate
liquidation preference of $724 million and $1,042 million) * *
Common Stock, par value $1.00 per share (1,115 and 1,089 million shares issued) 1,115 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 5,202 5,105
Foreign currency translation adjustments and other 163 594
Earnings retained for use in business 19,601 17,688
-------- --------
Total stockholders' equity 26,152 24,547
-------- --------
Total liabilities and stockholders' equity $258,501 $243,283
======== ========
- - - - - -
*Less than $1 million
The accompanying notes are part of the financial statements.
FS-4
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
----------------------------------------------
For the Periods Ended September 30, 1996 and 1995
(in millions)
Nine Months 1996 Nine Months 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 8,462 10,839 6,796 9,171
Net (purchases)/sales of trading securities (2,844) (1,230) 1,982 256
------- -------- ------- --------
Net cash flows from operating activities 5,618 9,609 8,778 9,427
Cash flows from investing activities
Capital expenditures (5,926) (349) (6,204) (223)
Acquisitions of receivables and lease investments - (82,293) - (71,557)
Collections of receivables and lease investments - 62,469 - 51,210
Net acquisitions of daily rental vehicles - (1,995) - (1,529)
Proceeds from USL Capital asset sales (Note 3) - 1,157 - -
Purchases of securities (6) (8,362) (47) (4,748)
Sales and maturities of securities 7 10,266 50 3,748
Proceeds from sales of receivables and lease investments - 1,011 - 2,728
Net investing activity with Financial Services (254) - (237) -
Other (523) (204) (400) (171)
------- -------- ------- --------
Net cash used in investing activities (6,702) (18,300) (6,838) (20,542)
Cash flows from financing activities
Cash dividends (1,328) - (1,120) -
Issuance of Common Stock 124 - 326 -
Issuance of Common Stock of a subsidiary (Note 4) - 1,897 - -
Changes in short-term debt 395 1,465 665 2,481
Proceeds from other debt 300 18,650 0 16,532
Principal payments on other debt (671) (10,407) (207) (7,931)
Net financing activity with Automotive - 254 - 237
Other (43) (266) 6 415
------- -------- ------- -------
Net cash (used in)/provided by financing activities (1,223) 11,593 (330) 11,734
Effect of exchange rate changes on cash (73) (206) 136 (21)
Net transactions with Automotive/Financial Services 91 (91) 394 (394)
------- -------- ------- --------
Net (decrease)/increase in cash and cash equivalents (2,289) 2,605 2,140 204
------- -------- ------- --------
Cash and cash equivalents at September 30 $ 3,461 $ 5,295 $ 6,621 $ 1,943
======= ======== ======= ========
</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):
Third Quarter Nine Months
------------------- -------------------
1996 1995 1996 1995
------ ------ ------ ------
Depreciation $687 $622 $1,966 $1,816
Amortization 828 731 2,278 2,072
3. Asset Write-downs and Dispositions
During third quarter 1996, USL Capital concluded a series of transactions
for the sale of substantially all of its assets, as well as certain assets
owned by Ford Credit and managed by USL Capital. Proceeds from the sale
were used to pay down related liabilities and debt.
The Company recorded a pre-tax charge in second quarter 1996 to recognize
the estimated value of its outstanding notes receivable from, and preferred
stock investment in, Budget Rent a Car Corporation ("BRAC"). The write-down
resulted from conclusions reached in a study of Ford's rental car business
strategy. In accordance with SFAS 114, the notes receivable write-down
reflected primarily the unsecured portion of financing provided to BRAC by
Ford. The preferred stock write-down reflected recognition of the fair
value of Ford's investment. Subject to governmental review, the Company
also intends to acquire all of the outstanding common stock of BRAC at a
future date.
The effect of the USL Capital disposition and BRAC write-down on the
Company's results from operations are summarized below (in millions):
<TABLE>
<CAPTION>
Third Quarter 1996 Nine Months 1996
------------------------ -----------------------------
Income Net Income/(loss) Net
Before Taxes Income Before Taxes Income/(loss)
------------ ------ ------------ -------------
<S> <C> <C> <C> <C>
USL Capital disposition $235 $76 $ 263 $ 95
Budget Rent a Car Corporation write-down - - (700) (437)
---- --- ----- -----
Total $235 $76 $(437) $(342)
==== === ===== =====
</TABLE>
FS-6
<PAGE>
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(unaudited)
4. Sale of The Associates' Common Stock - During May 1996, The Associates
completed an initial public offering of its common stock representing a
19.3% economic interest in The Associates (the "IPO"). The Company recorded
in second quarter 1996 a non-operating gain of $650 million resulting from
the IPO, to recognize the excess of the net proceeds from the IPO over the
proportionate share of the Company's investment in The Associates. The gain
was not subject to income taxes.
5. Automotive inventories are summarized as follows (in millions):
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
------------- ------------
<S> <C> <C>
Raw materials, work in process and supplies $3,758 $3,717
Finished products 3,913 3,445
------ ------
Total inventories $7,671 $7,162
====== ======
U.S. inventories $2,929 $2,662
</TABLE>
6. Company-Obligated Mandatorily Redeemable Preferred Securities of a
Subsidiary Trust - The sole asset of Ford Motor Company Capital Trust I
(the "Trust"), which is the obligor on the Preferred Securities of such
Trust, is $632 million principal amount of 9% Junior Subordinated
Debentures due 2025 of Ford Motor Company.
FS-7
<PAGE>
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 October 16, 1996 and is
qualified in its entirety by reference to such financial statement
</LEGEND>
<CIK> 0000037996
<NAME> FORD MOTOR COMPANY
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-30-1996
<PERIOD-END> SEP-30-1996
<CASH> 3,461
<SECURITIES> 9,499
<RECEIVABLES> 3,629
<ALLOWANCES> 104
<INVENTORY> 7,671
<CURRENT-ASSETS> 31,078
<PP&E> 71,368
<DEPRECIATION> 38,763
<TOTAL-ASSETS> 78,066
<CURRENT-LIABILITIES> 33,388
<BONDS> 5,171
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 86,518
<TOTAL-REVENUES> 86,518
<CGS> 79,941
<TOTAL-COSTS> 84,560
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 537
<INCOME-PRETAX> 1,905
<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 October 16,
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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 5,295
<SECURITIES> 3,594
<RECEIVABLES> 158,386
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 180,435
<CURRENT-LIABILITIES> 0
<BONDS> 148,320
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 21,640
<TOTAL-REVENUES> 21,640
<CGS> 0
<TOTAL-COSTS> 19,305
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 1,894
<INTEREST-EXPENSE> 7,318
<INCOME-PRETAX> 3,047
<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 October 16, 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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<TOTAL-ASSETS> 258,501
0
0
<COMMON> 1,186
<OTHER-SE> 24,966
<TOTAL-LIABILITY-AND-EQUITY> 258,501
<TOTAL-REVENUES> 108,158
<INCOME-TAX> 1,581
<INCOME-CONTINUING> 3,242
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,242
<EPS-PRIMARY> 2.71
<EPS-DILUTED> 2.66
Exhibit 99
Coopers & Lybrand L.L.P.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Stockholders
Ford Motor Company
We have reviewed the consolidated balance sheet of Ford Motor Company and
Subsidiaries at September 30, 1996 and the related consolidated statement of
income and condensed consolidated statement of cash flows for the periods set
forth in the Ford Motor Company Current Report on Form 8-K dated October 16,
1996. These financial statements are the responsibility of the Company's
management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the financial statements referred to above for them to be in
conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet at December 31, 1995 and the related
consolidated statements of income, stockholders' equity and cash flows for the
year then ended (not presented herein); and in our report dated January 26,
1996, we expressed an unqualified opinion on those consolidated financial
statements.
/s/Coopers & Lybrand L.L.P
COOPERS & LYBRAND L.L.P.
Detroit, Michigan
October 16, 1996
