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--------------- ------------------- ---------------------
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IMMEDIATE RELEASE
FORD EARNS $888 MILLION IN THIRD QUARTER
DEARBORN, Mich., Oct. 18, 2000 -- Ford Motor Company [NYSE: F] today reported
third quarter net income of $888 million, or 53 cents per diluted share of
common and Class B stock. A year ago, third quarter earnings from continuing
operations were $959 million, or 78 cents per diluted share. The decrease in
earnings of $71 million is more than explained by the impact of Firestone's
ongoing tire recall. Without the Firestone tire recall, profits would have been
a record in the third quarter.
"Getting our customers onto good tires has been, and continues to be, more
important than short-term profits," said Jac Nasser, Ford Motor Company
president and chief executive officer. "This was a difficult quarter for our
customers, our employees, our dealers and our shareholders and we are committed
to quickly completing the Firestone tire recall. However, we also believe that
these solid results demonstrate the underlying strength of our products and the
company's strong fundamentals and we continue to press forward with our
objective to become the world's leading consumer company for automotive products
and services."
AUTOMOTIVE OPERATIONS
Ford Motor Company's worldwide automotive earnings were $391 million in the
third quarter of 2000. This compares with earnings of $535 million in the third
quarter of 1999. Worldwide
<PAGE>
-2-
automotive revenues in the third quarter of 2000 were $33 billion, up $2 billion
from a year ago. After-tax return on sales (ROS) was 1.2 percent in the third
quarter, down 0.5 points from last year.
Worldwide vehicle sales were 1.7 million, up 3 percent compared with 1.6 million
in 1999. Automotive cash was $18.6 billion at the end of the quarter, following
completion of the $5.7 billion VEP. Third quarter automotive cash was $23.7
billion a year ago. Net cash was $6.6 billion, down from $11.3 billion a year
ago.
North America: Automotive earnings were $769 million in the third quarter of
2000, down $98 million. Ford's ROS in North America was 3.3 percent, down 0.6
points from 1999.
Total Ford Motor Company retail sales in the United States during the third
quarter were a record one million. U.S. factory unit sales were one million, up
5 percent from the same period a year ago. The sales pace was aided by the
strong performance of the Ford Focus, F-Series and Explorer Sport Trac. In
addition, several economic factors continued to support a healthy level of
sales, including job and income growth and attractive vehicle pricing.
Other Automotive Operations: Third quarter results in Ford Motor Company's other
automotive operations, including Europe, South America and Asia-Pacific, totaled
a loss of $378 million, compared with a loss of $332 million a year ago.
FORD CREDIT
Ford Credit earned $386 million in the third quarter of this year, up $69
million, or 22 percent, from a year ago. Return on equity was 12.9 percent, up
1.5 percentage points from a year ago.
HERTZ
The Hertz Corporation [NYSE: HRZ] earned a record $143 million in the third
quarter of 2000, compared with $139 million a year ago. Ford Motor Company's
share of Hertz' third-quarter 2000 earnings was $116 million.
# # #
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
HIGHLIGHTS
----------
Third Quarter Nine Months
---------------------------- ---------------------------
2000 1999 2000 1999
------------ ------------ ------------ ------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Worldwide vehicle unit sales of
cars and trucks (in thousands)
- North America 1,104 1,050 3,724 3,507
- Outside North America 550 549 1,839 1,795
------ ------ ------ ------
Total 1,654 1,599 5,563 5,302
====== ====== ====== ======
Sales and revenues (in millions)
- Automotive $ 32,582 $ 30,645 $ 106,123 $ 97,788
- Financial Services 7,482 6,635 21,354 18,948
--------- --------- --------- ---------
Total $ 40,064 $ 37,280 $ 127,477 $ 116,736
========= ========= ========= =========
Net income (loss) (in millions)
- Automotive $ 391 $ 535 $ 2,995 $ 3,632
- Financial Services 497 424 1,338 1,159
--------- --------- --------- ---------
Income from continuing operations 888 959 4,333 4,791
- Discontinued operation (Visteon) - 155 309 640
- Loss on spin-off of Visteon - - (2,252) -
--------- --------- --------- ---------
Total $ 888 $ 1,114 $ 2,390 $ 5,431
========= ========= ========= =========
Capital expenditures (in millions)
- Automotive $ 1,932 $ 1,812 $ 4,884 $ 4,521
- Financial Services 102 150 565 435
--------- --------- --------- ---------
Total $ 2,034 $ 1,962 $ 5,449 $ 4,956
========= ========= ========= =========
Automotive capital expenditures as a
percentage of sales 5.9% 5.9% 4.6% 4.6%
Stockholders' equity at September 30
- Total (in millions) $ 18,273 $ 26,961 $ 18,273 $ 26,961
- Annualized after-tax return on average Common
and Class B stockholders' equity 19.1% 16.9% 17.7% 28.2%
Automotive net cash at September 30
(in millions)
- Cash and marketable securities $ 18,599 $ 23,721 $ 18,599 $ 23,721
- Debt 11,987 12,420 11,987 12,420
--------- --------- --------- ---------
Automotive net cash $ 6,612 $ 11,301 $ 6,612 $ 11,301
========= ========= ========= =========
After-tax return on sales
- North American Automotive 3.3% 3.9% 5.5% 5.5%
- Total Automotive 1.2% 1.7% 2.9% 3.7%
Shares of Common and Class B Stock
(in millions)
- Average number outstanding 1,649 1,209 1,354 1,210
- Number outstanding at September 30 1,896 1,208 1,896 1,208
Common Stock price (per share)
(adjusted to reflect Visteon spin-off
and Value Enhancement Plan)
- High $26-5/8 $31 $30-1/8 $35-1/8
- Low 24-3/16 26-5/8 22-7/8 26-5/8
AMOUNTS PER SHARE OF COMMON AND
CLASS B STOCK AFTER PREFERRED
STOCK DIVIDENDS
Income assuming dilution
- Automotive $ 0.23 $ 0.44 $ 2.17 $ 2.94
- Financial Services 0.30 0.34 0.97 0.93
--------- --------- --------- ---------
Subtotal 0.53 0.78 3.14 3.87
- Discontinued operation (Visteon) - 0.12 0.23 0.52
- Loss on spin-off of Visteon - - (1.64) -
--------- --------- --------- ---------
Total $ 0.53 $ 0.90 $ 1.73 $ 4.39
========= ========= ========= =========
Cash dividends $ 0.50 $ 0.46 $ 1.50 $ 1.38
</TABLE>
FS-1
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
VEHICLE UNIT SALES
------------------
For the Periods Ended September 30, 2000 and 1999
(in thousands)
Third Quarter Nine Months
------------------------ --------------------------
2000 1999 2000 1999
-------- -------- -------- --------
(unaudited) (unaudited)
<S> <S> <C> <C> <C>
North America
United States
Cars 411 376 1,342 1,228
Trucks 603 596 2,068 2,015
----- ----- ----- -----
Total United States 1,014 972 3,410 3,243
Canada 59 50 218 188
Mexico 31 28 96 76
----- ----- ----- -----
Total North America 1,104 1,050 3,724 3,507
Europe
Britain 114 134 368 396
Germany 66 72 240 273
Italy 50 39 157 149
Spain 36 38 130 135
France 36 37 119 129
Sweden 32 21 90 54
Other countries 81 79 331 299
----- ----- ----- -----
Total Europe 415 420 1,435 1,435
Other international
Brazil 33 35 96 90
Australia 34 32 95 96
Taiwan 13 13 54 45
Argentina 12 16 39 44
Japan 5 8 22 25
Other countries 38 25 98 60
----- ----- ----- -----
Total other international 135 129 404 360
----- ----- ----- -----
Total worldwide vehicle unit sales 1,654 1,599 5,563 5,302
===== ===== ===== =====
</TABLE>
Vehicle unit sales generally 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, 2000 and 1999
(in millions)
Third Quarter Nine Months
-------------------------- ---------------------------
2000 1999 2000 1999
---------- ----------- ------------ ----------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
AUTOMOTIVE
Sales $32,582 $30,645 $106,123 $97,788
Costs and expenses (Note 5)
Cost of sales 29,679 27,879 94,772 86,412
Selling, administrative and other expenses 2,338 2,029 7,061 6,102
------- ------- -------- -------
Total costs and expenses 32,017 29,908 101,833 92,514
Operating income 565 737 4,290 5,274
Interest income 382 354 1,139 1,039
Interest expense 367 371 1,012 993
------- ------- -------- -------
Net interest income (expense) 15 (17) 127 46
Equity in net income (loss) of affiliated companies (61) 11 (64) 33
Net revenue (expense) from transactions with
Financial Services 9 (17) 19 (62)
------- ------- -------- -------
Income before income taxes - Automotive 528 714 4,372 5,291
FINANCIAL SERVICES
Revenues 7,482 6,635 21,354 18,948
Costs and expenses
Interest expense 2,451 1,988 6,975 5,701
Depreciation 2,427 2,333 7,033 6,881
Operating and other expenses 1,257 1,206 3,717 3,304
Provision for credit and insurance losses 482 383 1,347 1,146
------- ------- -------- -------
Total costs and expenses 6,617 5,910 19,072 17,032
Net revenue (expense) from transactions with
Automotive (9) 17 (19) 62
------- ------- -------- -------
Income before income taxes - Financial Services 856 742 2,263 1,978
------- ------- -------- -------
TOTAL COMPANY
Income before income taxes 1,384 1,456 6,635 7,269
Provision for income taxes 449 473 2,199 2,400
------- ------- -------- -------
Income before minority interests 935 983 4,436 4,869
Minority interests in net income of subsidiaries 47 24 103 78
------- ------- -------- -------
Net income from continuing operations 888 959 4,333 4,791
Net income from discontinued operation (Note 2) - 155 309 640
Loss on spin-off of discontinued operation (Note 2) - - (2,252) -
------- ------- -------- -------
Net income (loss) $ 888 $ 1,114 $ 2,390 $ 5,431
======= ======= ======== =======
Income attributable to Common and Class B Stock
after preferred stock dividends $ 884 $ 1,110 $ 2,379 $ 5,420
Average number of shares of Common and Class B
Stock outstanding 1,649 1,209 1,354 1,210
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
Basic Income (Note 9)
Net income from continuing operations $ 0.54 $ 0.79 $ 3.21 $ 3.96
Net income $ 0.54 $ 0.92 $ 1.77 $ 4.49
Diluted Income (Note 9)
Net income from continuing operations $ 0.53 $ 0.78 $ 3.14 $ 3.87
Net income $ 0.53 $ 0.90 $ 1.73 $ 4.39
Cash dividends $ 0.50 $ 0.46 $ 1.50 $ 1.38
The accompanying notes are part of the financial statements.
</TABLE>
FS-3
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
--------------------------
(in millions)
September 30, December 31,
2000 1999
--------------- --------------
(unaudited)
<S> <C> <C>
ASSETS
Automotive
Cash and cash equivalents $ 3,352 $ 2,793
Marketable securities 15,247 18,943
-------- --------
Total cash and marketable securities 18,599 21,736
Receivables 4,523 5,267
Inventories (Note 6) 8,189 5,684
Deferred income taxes 2,645 3,762
Other current assets 5,006 3,831
Current receivable from Financial Services 2,052 2,304
-------- --------
Total current assets 41,014 42,584
Equity in net assets of affiliated companies 2,863 2,539
Net property 35,600 36,528
Deferred income taxes 3,795 2,454
Net assets of discontinued operation (Note 2) - 1,566
Other assets 12,938 13,530
-------- --------
Total Automotive assets 96,210 99,201
Financial Services
Cash and cash equivalents 2,310 1,588
Investments in securities 752 733
Finance receivables, net 121,094 113,298
Net investment in operating leases 47,321 42,471
Other assets 10,975 11,123
Receivable from Automotive 3,623 1,835
-------- --------
Total Financial Services assets 186,075 171,048
-------- --------
Total assets $282,285 $270,249
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive
Trade payables $ 14,465 $ 14,292
Other payables 3,789 3,778
Accrued liabilities 22,981 18,488
Income taxes payable 634 1,709
Debt payable within one year 731 1,338
-------- --------
Total current liabilities 42,600 39,605
Long-term debt 11,256 10,398
Other liabilities 31,987 29,283
Deferred income taxes 303 1,223
Payable to Financial Services 3,623 1,835
-------- --------
Total Automotive liabilities 89,769 82,344
Financial Services
Payables 4,607 3,550
Debt 149,779 139,919
Deferred income taxes 9,507 7,078
Other liabilities and deferred income 7,624 6,775
Payable to Automotive 2,052 2,304
-------- --------
Total Financial Services liabilities 173,569 159,626
Company-obligated mandatorily redeemable preferred securities
of a subsidiary trust holding solely junior subordinated debentures
of the Company (Note 7) 674 675
Stockholders' equity
Capital stock
Preferred Stock, par value $1.00 per share (aggregate
liquidation preference of $177 million) * *
Common Stock (par value $0.01 and $1.00 per share as of 2000 and
1999, respectively; 1,837 and 1,151 million shares issued as of 2000
and 1999, respectively) 18 1,151
Class B Stock, par value $0.01 and $1.00 per share as of 2000 and
1999, respectively (71 million shares issued) 1 71
Capital in excess of par value of stock 5,969 5,049
Accumulated other comprehensive income (3,913) (1,856)
ESOP loan and treasury stock (1,176) (1,417)
Earnings retained for use in business 17,374 24,606
-------- --------
Total stockholders' equity 18,273 27,604
-------- --------
Total liabilities and stockholders' equity $282,285 $270,249
======== ========
- - - -
*Less than $1 million
The accompanying notes are part of the financial statements.
</TABLE>
FS-4
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
----------------------------------------------
For the Periods Ended September 30, 2000 and 1999
(in millions)
Nine Months 2000 Nine Months 1999
--------------------------- --------------------------
Financial Financial
Automotive Services Automotive Services
------------- ----------- ------------- -----------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Cash and cash equivalents at January 1 $ 2,793 $ 1,588 $ 3,143 $ 1,151
Cash flows from operating activities before securities trading 10,891 11,497 10,127 10,350
Net sales (purchases) of trading securities 4,041 151 (1,248) (148)
------- -------- ------- --------
Net cash flows from operating activities 14,932 11,648 8,879 10,202
Cash flows from investing activities
Capital expenditures (4,884) (565) (4,521) (435)
Acquisitions of receivables and lease investments - (69,257) - (61,657)
Collections of receivables and lease investments - 41,426 - 38,358
Net acquisitions of daily rental vehicles - (2,482) - (2,025)
Purchases of securities (374) (415) (1,681) (759)
Sales and maturities of securities 29 412 1,385 988
Proceeds from sales of receivables and lease investments - 12,502 - 9,520
Net investing activity with Financial Services 92 - (430) -
Cash paid for acquisitions (Note 3) (2,487) (87) (5,808) -
Other - 226 314 (4)
------- -------- ------- -------
Net cash used in investing activities (7,624) (18,240) (10,741) (16,014)
Cash flows from financing activities
Cash dividends (2,185) - (1,682) (3)
Net purchases of Common Stock (185) - (265) -
Changes in short-term debt (841) (8,140) 184 (2,210)
Proceeds from issuance of other debt 1,917 31,397 1,925 26,925
Principal payments on other debt (823) (14,896) (156) (18,796)
Net debt repayments from discontinued operation 650 - - -
Net cash distribution (to) from discontinued operation (85) - 291 -
Value Enhancement Plan payments (5,440)
Net financing activity with Automotive - (92) - 430
Other 14 (409) 338 (62)
------- -------- ------- -------
Net cash (used in)/provided by financing activities (6,978) 7,860 635 6,284
Effect of exchange rate changes on cash (23) (294) (45) (197)
Net transactions with Automotive/Financial Services 252 (252) 187 (187)
------- -------- ------- -------
Net increase (decrease) in cash and cash equivalents 559 722 (1,085) 88
------- -------- ------- -------
Cash and cash equivalents at September 30 $ 3,352 $ 2,310 $ 2,058 $ 1,239
======= ======== ======= ========
</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,
1999. For purposes of Notes to Financial Statements, "Ford" or the
"Company" means Ford Motor Company and its majority owned subsidiaries,
unless the context requires otherwise. Certain amounts for prior periods
were reclassified to conform with present period presentation.
2. Discontinued Operation - On June 28, 2000, Ford distributed 130 million
shares of Visteon, which represented its 100% ownership interest, by means
of a tax-free spin-off in the form of a dividend on Ford Common and Class B
Stock. Our financial statements have been restated to reflect Visteon as a
"discontinued operation" for all periods shown.
3. Purchase of Land Rover Business - On June 30, 2000, we purchased the Land
Rover business from the BMW Group for approximately three billion euros.
Approximately two-thirds of the purchase price (equivalent of $1.9 billion
at June 30) was paid at time of closing. The remainder will be paid in
2005. The acquisition involves the entire Land Rover line of products, and
related assembly and engineering facilities. It does not include Rover's
passenger car business or financial services business.
The acquisition has been accounted for as a purchase. The assets acquired,
liabilities assumed and the results of operations, since the date of
acquisition, are included in our financial statements on a consolidated
basis.
The purchase price for Land Rover has been allocated, on a preliminary
basis, to the assets acquired and liabilities assumed based on estimated
fair value as of the acquisition date. The excess of the purchase price
over the estimated fair value of net assets acquired is approximately $800
million and is being amortized on a straight-line basis over 40 years.
Assuming the acquisition had taken place on January 1, 2000 and 1999,
unaudited pro forma revenue for Ford (Automotive) would have been
approximately $108.7 billion and $101.4 billion for each of the nine month
periods ended September 30, respectively. Pro forma effects on net income
from continuing operations would not have been material.
4. Value Enhancement Plan - On August 7, 2000, we announced the final results
of our recapitalization, known as our Value Enhancement Plan ("VEP"). Under
the VEP, Ford shareholders exchanged each of their old Ford common or Class
B shares for one new Ford common or Class B share, as the case may be, plus
either $20 in cash, 0.748 additional new Ford common shares, or a
combination of $5.17 in cash and 0.555 additional new Ford common shares.
In accordance with generally accepted accounting principles, prior period
shares and earnings per share amounts were not adjusted. Third quarter
average diluted shares of 1.678 billion were calculated based on an average
of 1.222 billion shares for the period prior to the VEP and an average of
1.929 billion shares for the period subsequent to the VEP.
FS-6
<PAGE>
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(unaudited)
5. Selected Automotive Costs and Expenses are summarized as follows (in
millions):
<TABLE>
<CAPTION>
Third Quarter Nine Months
---------------------- ------------------------
2000 1999 2000 1999
--------- --------- ---------- ----------
<S> <C> <C> <C> <C>
Depreciation $734 $715 $2,146 $1,999
Tooling Amortization 574 641 1,776 1,773
Pension benefit 75 111 89 317
</TABLE>
Acquisition of Land Rover - Under U.S. accounting rules, we were required
to write-up inventory acquired to fair value, resulting in a one-time
increase to third quarter 2000 cost of sales of $162 million ($106 million
after tax).
European Charges - Following an extensive business review of the Ford Brand
operations in Europe, the Company recorded a pre-tax charge in Automotive
cost of sales of $1,568 million in the second quarter of 2000. This charge
included $1.1 billion for asset impairments and $468 million for
restructuring costs. The effect on after-tax earnings was $1,019 million.
As of September 30, 2000, we have spent or utilized approximately $150
million related to this charge, the remaining $318 million is expected to
be incurred in the time period specified in the original plan.
Acquisition of AB Volvo's worldwide passenger car business ("Volvo Car") -
Under U.S. accounting rules, we were required to write-up inventory
acquired to fair value, resulting in a one-time increase to second quarter
1999 cost of sales of $224 million ($146 million after tax).
Dissolution of AutoEuropa Joint Venture - Effective January 1, 1999, our
joint venture for the production of mini-vans with Volkswagon AG in
Portugal (AutoEuropa) was dissolved, resulting in a $255 million pre-tax
gain ($165 million after-tax) in the first quarter of 1999.
6. Automotive Inventories are summarized as follows (in millions):
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
------------- ------------
<S> <C> <C>
Raw materials, work in process and supplies $2,768 $2,035
Finished products 5,421 3,649
------ ------
Total inventories $8,189 $5,684
====== ======
U.S. inventories $2,616 $1,811
</TABLE>
7. 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.
8. Comprehensive Income - Other comprehensive income includes foreign currency
translation adjustments, minimum pension liability adjustments, and net
unrealized gains and losses on investments in equity securities. Total
comprehensive income is summarized as follows (in millions):
<TABLE>
<CAPTION>
Third Quarter Nine Months
------------------------ -------------------------
2000 1999 2000 1999
---------- --------- ---------- ----------
<S> <C> <C> <C> <C>
Net income $ 888 $1,114 $ 2,390 $ 5,431
Other comprehensive income (979) 267 (2,057) (177)
------- ------ ------- -------
Total comprehensive income $ (91) $1,381 $ 333 $ 5,254
======= ====== ======= =======
</TABLE>
The reduction in other comprehensive income in 2000 primarily reflects
foreign currency translation adjustments related to the strengthening of
the U.S. dollar relative to European currencies.
FS-7
<PAGE>
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(unaudited)
9. Income Per Share of Common and Class B Stock - Basic income per share of
Common and Class B Stock is calculated by dividing the income attributable
to Common and Class B Stock by the average number of shares of Common and
Class B Stock outstanding during the applicable period, adjusted for shares
issuable under employee savings and compensation plans. The third quarter
shares outstanding reflect the issuance of additional shares as a result of
the Value Enhancement Plan (Note 4).
The calculation of diluted income per share of Common and Class B Stock
takes into account the effect of dilutive potential common stock, such as
stock options.
Income per share of Common and Class B Stock was as follows (in millions,
except per share amounts):
<TABLE>
<CAPTION>
Third Quarter 2000 Third Quarter 1999
--------------------- ----------------------
Income Shares Income Shares
---------- --------- ---------- ----------
<S> <C> <C> <C> <C>
Net income from continuing operations $ 888 1,649 $ 959 1,209
Preferred stock dividend requirements (4) - (4) -
Issuable and uncommitted ESOP shares - (6) - (3)
------ ----- ------ -----
Basic income and shares from continuing operations $ 884 1,643 $ 955 1,206
Basic income per share from continuing operations $ 0.54 $ 0.79
Basic income per share from discontinued operation - 0.13
------ ------
Basic income per share $ 0.54 $ 0.92
Basic income and shares from continuing operations $ 884 1,643 $ 955 1,206
Net dilutive effect of options - 35 - 25
------ ----- ------ -----
Diluted income and shares from continuing operations $ 884 1,678 $ 955 1,231
Diluted income per share from continuing operations $ 0.53 $ 0.78
Diluted income per share from discontinued operation - 0.12
------ ------
Diluted income per share $ 0.53 $ 0.90
</TABLE>
<TABLE>
<CAPTION>
Nine Months 2000 Nine Months 1999
--------------------- ----------------------
Income Shares Income Shares
---------- --------- ---------- ----------
<S> <C> <C> <C> <C>
Net income from continuing operations $4,333 1,354 $4,791 1,210
Preferred stock dividend requirements (11) - (11) -
Issuable and uncommitted ESOP shares - (7) - (4)
------ ----- ------ -----
Basic income and shares from continuing operations $4,322 1,347 $4,780 1,206
Basic income per share from continuing operations $ 3.21 $ 3.96
Basic income per share from discontinued operation 0.23 0.53
Basic loss per share on spin-off of discontinued operation (1.67) -
------ ------
Basic income per share $ 1.77 $ 4.49
Basic income and shares from continuing operations $4,322 1,347 $4,780 1,206
Net dilutive effect of options - 28 - 29
------ ----- ------ -----
Diluted income and shares from continuing operations $4,322 1,375 $4,780 1,235
Diluted income per share from continuing operations $ 3.14 $ 3.87
Diluted income per share from discontinued operation 0.23 0.52
Diluted loss per share on spin-off of discontinued operation (1.64) -
------ ------
Diluted income per share $ 1.73 $ 4.39
</TABLE>
FS-8
<PAGE>
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
(unaudited)
10. Segment Information - Ford's business is divided into two business sectors
- Automotive and Financial Services (including Ford Credit and Hertz);
detail is summarized as follows (in millions):
<TABLE>
<CAPTION>
Financial Services Sector
---------------------------------
Third Quarter Auto Ford Other Elims/
Sector Credit Hertz Fin Svcs Other Total
----------- ----------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
2000
Revenues
External customer $ 32,582 $ 5,948 $ 1,424 $ 103 $ 7 $ 40,064
Intersegment 760 43 8 11 (822) -
-------- -------- ------- ------ ------- --------
Total Revenues $ 33,342 $ 5,991 $ 1,432 $ 114 $ (815) $ 40,064
======== ======== ======= ====== ======= ========
Net income from continuing
operations $ 391 $ 386 $ 143 $ 3 $ (35) $ 888
1999
Revenues
External customer $ 30,645 $ 5,075 $ 1,339 $ 216 $ 5 $ 37,280
Intersegment 558 57 9 43 (667) -
-------- -------- ------- ------ ------- --------
Total Revenues $ 31,203 $ 5,132 $ 1,348 $ 259 $ (662) $ 37,280
======== ======== ======= ====== ======= ========
Net income from continuing
operations $ 535 $ 317 $ 139 $ (5) $ (27) $ 959
</TABLE>
<TABLE>
<CAPTION>
Financial Services Sector
---------------------------------
Nine Months Auto Ford Other Elims/
Sector Credit Hertz Fin Svcs Other Total
----------- ---------------------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
2000
Revenues
External customer $106,123 $ 17,217 $ 3,826 $ 285 $ 26 $127,477
Intersegment 3,256 123 23 115 (3,517) -
-------- -------- ------- ------ ------- --------
Total Revenues $109,379 $ 17,340 $ 3,849 $ 400 $(3,491) $127,477
======== ======== ======= ====== ======= ========
Net income from continuing
operations $ 2,995 $ 1,126 $ 303 $ (26) $ (65) $ 4,333
Total assets $ 99,659 $169,894 $11,191 $9,228 $(7,687) $282,285
1999
Revenues
External customer $ 97,788 $ 14,899 $ 3,528 $ 519 $ 2 $116,736
Intersegment 3,025 172 25 136 (3,358) -
-------- -------- ------- ------ ------- --------
Total Revenues $100,813 $ 15,071 $ 3,553 $ 655 $(3,356) $116,736
======== ======== ======= ====== ======= ========
Net income from continuing
operations $ 3,632 $ 952 $ 276 $ (15) $ (54) $ 4,791
Total assets a/ $100,924 $147,877 $10,159 $9,107 $(6,312) $261,755
- - - - -
</TABLE>
a/ Net assets of discontinued operation of $2,051 as of September 30, 1999
are included in Auto Sector total assets.
"Other Financial Services" data is an aggregation of miscellaneous smaller
Financial Services Sector business components, including Ford Motor Land
Development Corporation, Ford Leasing Development Company, Ford Leasing
Corporation and Granite Management Corporation.
"Eliminations/Other" data includes intersegment eliminations and minority
interests. Interest income for the operating segments in the Financial
Services Sector is reported as "Revenue".
