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Previous: WASATCH PHARMACEUTICAL INC, 10QSB, 2000-04-17 |
Next: FRIENDLY ICE CREAM CORP, DEF 14A, 2000-04-17 |
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, 2000
----------------
(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.)
One American Road, Dearborn, Michigan 48126
-------------------------------------- -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 313-322-3000
------------
<PAGE>
-2-
Item 5. Other Events.
- ---------------------
Our news release dated April 17, 2000 concerning our first quarter 2000
earnings, 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 Filed with this Report
dated April 17, 2000
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, 2000 By: /s/ Kathryn S. Lamping
-------------------------
Kathryn S. Lamping
Assistant Secretary
<PAGE>
-3-
EXHIBIT INDEX
-------------
DESIGNATION DESCRIPTION
- ----------- -----------
Exhibit 20 News Release dated
April 17, 2000
Ford News
Media Information Center
Telephone: 800-665-1515 (toll free) or 313-621-0504 ; Fax: 313-845-7512
E-mail: [email protected]; Internet: http://media.ford.com
Contact: Media Inquiries Securities Analysts Shareholder Inquiries
Christian Vinyard Mike Holland 800-555-5259 or
313-323-7045 313-323-8221 313-845-8540
FOR RELEASE AT 7 A.M. (EASTERN DAYLIGHT)
FORD EARNS $2.1 BILLION IN FIRST QUARTER;
NEW RECORDS FOR OPERATING EARNINGS, REVENUES
DEARBORN, Mich., April 17, 2000 -- Ford Motor Company [ NYSE: F ] earned a
record $2.1 billion in the first quarter, or $1.70 per diluted share of common
and Class B stock, and posted the 16th consecutive quarter of improved
year-over-year operating results. The results compare with first-quarter
earnings in 1999 of $2 billion, or $1.60 per diluted share, which included a
one-time gain of $165 million, or 14 cents a share, from the dissolution of
AutoEuropa. Excluding AutoEuropa, first-quarter earnings rose $265 million or
15 percent.
"Our earnings momentum is as strong as ever," said Jacques A. Nasser, president
and chief executive officer. "We are transforming our car and truck business,
and we have positioned the company for profitable growth in financial services,
automotive consumer services, Hertz, and e-business. We have a strong product
line-up, and as the year unfolds, important new products will continue to be
introduced in North America and Europe. In addition, the independence of
Visteon will only accelerate our transformation."
On April 14, Ford announced that the goal to make Visteon Corporation an
independent company would be realized through a 100 percent distribution of
stock to Ford shareholders, expected to be completed by this summer.
<PAGE>
-2-
Visteon's earnings are now reported separately and are treated as a
discontinued operation in Ford Motor Company's financial statements.
"An independent Visteon will be a stronger competitor in a growing industry
segment," Nasser said, "and at the same time it will allow us at Ford to focus
even more strongly on our car and truck business."
Excluding Visteon, first-quarter revenues were a record $43 billion, up $5
billion or 14 percent over the first quarter of 1999. Unit sales were a record
1.9 million, compared with 1.8 million a year ago. Luxury vehicle sales, also a
record, were 190,000, an increase of 50 percent from a year ago.
AUTOMOTIVE OPERATIONS: Excluding Visteon, Ford's earnings from worldwide
automotive operations were $1.6 billion, up $271 million or 21 percent from the
same period a year ago, excluding the sale of AutoEuropa. Worldwide automotive
revenues in the first quarter were a record $36 billion, up 14 percent compared
with a year ago. After-tax return on sales was 4.3 percent, up two-tenths of a
point from last year's first quarter, excluding AutoEuropa.
Automotive cash was $23 billion at the end of the quarter, virtually unchanged
from the same period last year. Net cash was $12 billion, up $450 million from
a year ago.
New products coming later this year include the Ford Escape sport utility, the
Volvo S60, a new Ford Explorer and Mercury Mountaineer and a new Mondeo in
Europe.
<PAGE>
-3-
North America: Automotive operations in North America, excluding Visteon,
earned a record $1.7 billion in the first quarter of 2000, up $288 million from
the same period a year ago. After-tax return on sales was 6.2 percent, up
four-tenths of a point. "The real driver behind our North American results is
the strong demand for hit products," Nasser said. "And more will be coming," he
added. "At the same time, our automotive business structure continues to
transform. Total costs are down $6 billion in three years, and the acquisitions
of Volvo, Kwik-Fit, and the planned acquisition of Land Rover have strengthened
and broadened our consumer focus," Nasser said.
Total vehicle sales in the United States set a new first-quarter record of 1.2
million cars and trucks. Strong sales were aided by the new Ford Focus, Ford
Taurus, Ford F150 SuperCrew, the Ford Explorer Sport Trac and Sport, Jaguar
S-Type and the Volvo 70.
Other Markets: In Europe, South America and other overseas markets, Ford lost
$115 million, about even with last year's first quarter.
FORD CREDIT: Ford Credit earned $353 million in the first quarter, up $53
million or 18 percent in the first quarter of 1999. Return on equity was 12.7
percent, up 1.4 points from a year ago. Ford Credit is on track to meet its
full-year financial milestones to increase earnings by 10 percent and improve
returns.
HERTZ: The Hertz Corporation [ NYSE: HRZ ] earned a record $56 million in the
first quarter, up $7 million or 14 percent. Ford Motor Company's share of
Hertz' first-quarter earnings was $46 million.
<PAGE>
-4-
DELIVERING SHAREHOLDER VALUE: On April 14, Ford Motor Company also announced a
Shareholder Value Enhancement Plan that offers Ford shareholders new Ford
shares and a choice of accepting $20 per share in cash or additional new Ford
shares equivalent to the cash value. "This plan reflects our transformational
thinking," Nasser said, "as well as our strong earnings and cash flow. It also
underscores management's confidence and our commitment to delivering superior
shareholder value over time."
# # #
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
HIGHLIGHTS a/
----------
First Quarter
-----------------------------
2000 1999
------------- -------------
(unaudited)
<S> <C> <C>
Worldwide vehicle unit sales of cars and trucks
(in thousands)
- - North America 1,309 1,220
- - Outside North America 602 554
----- -----
Total 1,911 1,774
===== =====
Sales and revenues (in millions)
- - Automotive $36,175 $31,597
- - Financial Services 6,719 5,952
------- -------
Total $42,894 $37,549
======= =======
Net income (in millions)
- - Automotive $ 1,552 $ 1,446
- - Financial Services 380 328
------- -------
Total continuing operations 1,932 1,774
- - Discontinued operation - Visteon 147 205
------- -------
Total $ 2,079 $ 1,979
======= =======
Capital expenditures (in millions)
- - Automotive $ 1,500 $ 1,142
- - Financial Services 306 144
------- -------
Total $ 1,806 $ 1,286
======= =======
Automotive capital expenditures as a
percentage of sales 4.1% 3.6%
Stockholders' equity at March 31
- - Total (in millions) $28,419 $24,814
- - After-tax return on Common and
Class B stockholders' equity
25.3% 29.6%
Automotive net cash at March 31
(in millions)
- - Cash and marketable securities $22,848 $22,899
- - Debt 10,753 11,254
------- -------
Automotive net cash $12,095 $11,645
======= =======
After-tax return on sales
- - North American Automotive 6.2% 5.8%
- - Total Automotive 4.3% 4.6%
Shares of Common and Class B Stock
(in millions)
- - Average number outstanding 1,206 1,211
- - Number outstanding at March 31 1,205 1,211
Common Stock price (per share)
- - High $ 54-5/8 $ 66-1/2
- - Low 41 55-1/4
AMOUNTS PER SHARE OF COMMON AND CLASS B
STOCK AFTER PREFERRED STOCK DIVIDENDS
Income assuming dilution
- - Automotive $ 1.27 1.16
- - Financial Services 0.31 0.27
-------- --------
Total continuing operations 1.58 1.43
- - Discontinued operation - Visteon 0.12 0.17
-------- --------
Total $ 1.70 $ 1.60
======== ========
Cash dividends $ 0.50 $ 0.46
</TABLE>
- - - - - -
a/ Visteon is reflected as a discontinued operation. Visteon's results and
financial condition have been excluded from all amounts except total net income
and total earnings per share.
FS-1
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
VEHICLE UNIT SALES
------------------
For the Periods Ended March 31, 2000 and 1999
(in thousands)
First Quarter
-----------------------------
2000 1999
------------- -------------
(unaudited)
<S> <C> <C>
North America
United States
Cars 480 404
Trucks 722 739
----- -----
Total United States 1,202 1,143
Canada 79 58
Mexico 28 19
----- -----
Total North America 1,309 1,220
Europe
Britain 115 126
Germany 91 90
Italy 49 50
France 42 38
Spain 40 43
Other countries 140 99
----- -----
Total Europe 477 446
Other international
Brazil 28 22
Australia 24 30
Taiwan 22 17
Argentina 15 14
Japan 9 7
Other countries 27 18
----- -----
Total other international 125 108
----- -----
Total worldwide vehicle unit sales 1,911 1,774
===== =====
</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 March 31, 2000 and 1999
(in millions)
First Quarter
-----------------------------
2000 1999
-----------------------------
(unaudited)
<S> <C> <C>
AUTOMOTIVE (Note 4)
Sales $36,175 $31,597
Costs and expenses (Note 3)
Costs of sales 31,578 27,737
Selling, administrative and other expenses 2,265 1,777
------- -------
Total costs and expenses 33,843 29,514
Operating income 2,332 2,083
Interest income 368 339
Interest expense 318 285
------- -------
Net interest income 50 54
Equity in net income/(loss) of affiliated companies (32) 34
Net expense from transactions with
Financial Services (10) (28)
------- -------
Income before income taxes - Automotive 2,340 2,143
FINANCIAL SERVICES
Revenues 6,719 5,952
Costs and expenses
Interest expense 2,213 1,888
Depreciation 2,208 2,157
Operating and other expenses 1,211 997
Provision for credit and insurance losses 454 391
------- -------
Total costs and expenses 6,086 5,433
Net revenue from transactions with Automotive 10 28
------- -------
Income before income taxes - Financial Services 643 547
------- -------
TOTAL COMPANY
Income before income taxes 2,983 2,690
Provision for income taxes 1,022 893
------- -------
Income before minority interests 1,961 1,797
Minority interests in net income of subsidiaries 29 23
------- -------
Net income from continuing operations $ 1,932 $ 1,774
Net income from discontinued operation - Visteon (Note 2) 147 205
------- -------
Net income $ 2,079 $ 1,979
======= =======
Income attributable to Common and Class B Stock
after preferred stock dividends $ 2,075 $ 1,975
Average number of shares of Common and Class B
Stock outstanding 1,206 1,211
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
Basic income from continuing operations (Note 5) $ 1.61 $ 1.47
Diluted income from continuing operations (Note 5) $ 1.58 $ 1.43
Basic income (Note 5) $ 1.73 $ 1.64
Diluted income (Note 5) $ 1.70 $ 1.60
Cash dividends $ 0.50 $ 0.46
</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,
2000 1999
---------------- -----------------
(unaudited)
<S> <C> <C>
ASSETS
Automotive
Cash and cash equivalents $ 3,875 $ 2,793
Marketable securities 18,973 18,943
-------- --------
Total cash and marketable securities 22,848 21,736
Receivables 4,406 4,570
Inventories (Note 6) 6,557 5,684
Deferred income taxes 2,816 3,762
Other current assets 4,501 4,528
Current receivable from Financial Services 1,807 2,304
-------- --------
Total current assets 42,935 42,584
Equity in net assets of affiliated companies 2,716 2,539
Net property 35,831 36,528
Deferred income taxes 2,562 2,454
Net assets of discontinued operations - Visteon (Note 2) 1,644 1,566
Other assets 13,421 13,530
-------- --------
Total Automotive assets 99,109 99,201
Financial Services
Cash and cash equivalents 1,883 1,588
Investments in securities 488 733
Finance receivables, net 116,626 113,298
Net investment in operating leases 43,890 42,471
Other assets 10,745 11,123
Receivable from Automotive 2,283 1,835
-------- --------
Total Financial Services assets 175,915 171,048
-------- --------
Total assets $275,024 $270,249
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive
Trade payables $ 14,570 $ 14,292
Other payables 3,537 4,156
Accrued liabilities 18,891 18,110
Income taxes payable 1,821 1,709
Debt payable within one year 1,107 1,338
Current payable to Financial Services 0 0
-------- --------
Total current liabilities 39,926 39,605
Long-term debt 9,646 10,398
Other liabilities 29,444 29,283
Deferred income taxes 439 1,223
Payable to Financial Services 2,283 1,835
-------- --------
Total Automotive liabilities 81,738 82,344
Financial Services
Payables 4,191 3,550
Debt 143,951 139,919
Deferred income taxes 7,731 7,078
Other liabilities and deferred income 6,512 6,775
Payable to Automotive 1,807 2,304
-------- --------
Total Financial Services liabilities 164,192 159,626
Company-obligated mandatorily redeemable preferred securities of a subsidiary
trust holding solely junior subordinated debentures of the Company (Note 7) 675 675
Stockholders' equity
Capital stock
Preferred Stock, par value $1.00 per share (aggregate liquidation preference of $177
million) * *
Common Stock, par value $1.00 per share (1,151 million shares issued) 1,151 1,151
Class B Stock, par value $1.00 per share (71 million shares issued) 71 71
Capital in excess of par value of stock 4,971 5,049
Accumulated other comprehensive income (2,453) (1,856)
ESOP loan and treasury stock (1,399) (1,417)
Earnings retained for use in business 26,078 24,606
-------- --------
Total stockholders' equity 28,419 27,604
-------- --------
Total liabilities and stockholders' equity $275,024 $270,249
======== ========
</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, 2000 and 1999
(in millions)
First Quarter 2000 First Quarter 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 3,443 5,342 2,480 1,830
Net sales of trading securities 22 73 922 99
------- ------- ------- -------
Net cash flows from operating activities 3,465 5,415 3,402 1,929
Cash flows from investing activities
Capital expenditures (1,500) (306) (1,142) (144)
Acquisitions of receivables and lease investments - (24,585) - (18,304)
Collections of receivables and lease investments - 15,389 - 12,859
Net acquisitions of daily rental vehicles - (1,035) - (768)
Purchases of securities (1,133) (142) (392) (309)
Sales and maturities of securities 1,100 123 321 367
Proceeds from sales of receivables and lease investments - 2,807 - 2,045
Net investing activity with Financial Services 35 - 39 -
Cash paid for acquisitions (Note 4) (206) (49) (2,966) -
Other (56) 240 282 (3)
------- ------- ------- -------
Net cash used in investing activities (1,760) (7,558) (3,858) (4,257)
Cash flows from financing activities
Cash dividends (607) - (561) (1)
Net purchases of Common Stock (78) - (136) -
Changes in short-term debt (736) (3,891) 121 (968)
Proceeds from issuance of other debt 156 11,610 1,632 9,097
Changes in other debt (389) - 91 -
Principal payments on other debt - (3,672) (151) (5,282)
Net financing activity with Automotive - (35) - (39)
Net cash distribution to Ford from discontinued operation 17 - 70 -
Other 21 (549) 178 5
------- ------- ------- -------
Net cash (used in)/provided by financing activities (1,616) 3,463 1,244 2,812
Effect of exchange rate changes on cash 48 (80) (87) (106)
Net transactions with Automotive/Financial Services 945 (945) (214) 214
------- ------- ------- -------
Net increase in cash and cash equivalents 1,082 295 487 592
------- ------- ------- -------
Cash and cash equivalents at March 31 $ 3,875 $ 1,883 $ 3,630 $ 1,743
======= ======= ======= =======
</TABLE>
Visteon is reflected as a discontinued operation (Note 2).
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 this report, "Ford", the "Company", "we", "our",
"us" or similar references 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 April 13, 2000, the Ford Board of Directors
approved a plan for the complete separation of Visteon Corporation from
Ford by means of a tax-free spin-off in the form of a dividend on Ford
Common and Class B Stock consisting of all shares of Visteon Common Stock.
Specific record and distribution dates will be established after
Securities and Exchange Commission clearance. Consistent with this
approved plan and to aid in comparisons, our financial statements reflect
Visteon's reported net income and net assets as a "discontinued operation"
for all periods shown.
Visteon, a wholly-owned subsidiary of Ford, is a global provider of
integrated systems, modules and components to automotive manufacturers and
other automotive suppliers. Visteon operates in three business segments:
Comfort, Communication & Safety; Dynamics & Energy Conversion; and Glass.
Sales and selected income data for Visteon were (in millions):
<TABLE>
<CAPTION>
First Quarter
--------------------------------
2000 1999
--------------- ---------------
<S> <C> <C>
Sales to Ford $4,476 $4,356
Sales to non-Ford customers 749 416
------ ------
Total sales $5,225 $4,772
====== ======
Income before income taxes $ 237 $ 313
Provision for income taxes (86) (112)
Minority interests in net income of subsidiaries (4) 4
------ ------
Net income $ 147 $ 205
====== ======
</TABLE>
<TABLE>
<CAPTION>
The net assets of Visteon were (in millions):
March 31, December 31,
2000 1999
--------------- ---------------
<S> <C> <C>
Cash and marketable securities $ 943 $ 1,849
Inventories 743 751
Other current assets 2,986 2,596
-------- --------
Total current assets 4,672 5,196
Net property 5,730 5,789
Other assets 1,388 1,464
-------- --------
Total assets 11,790 12,449
Current liabilities (4,778) (5,475)
Long-term debt (1,426) (1,358)
Other liabilities (4,046) (4,117)
-------- --------
Total liabilities (10,250) (10,950)
Accumulated other comprehensive income 104 67
-------- --------
Net assets $ 1,644 $ 1,566
======== ========
</TABLE>
FS-6
<PAGE>
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(unaudited)
<TABLE>
<CAPTION>
3. Selected Automotive costs and expenses are summarized as follows (in millions):
First Quarter
---------------------
2000 1999
-------- --------
<S> <C> <C>
Depreciation $694 $616
Amortization 574 561
</TABLE>
Dissolution of AutoEuropa Joint Venture - Effective January 1, 1999, our
joint venture for the production of minivans with Volkswagen AG in
Portugal (AutoEuropa) was dissolved resulting in a $255 million pre-tax
gain ($165 million after-tax) in the first quarter of 1999.
4. Acquisitions
Purchase of AB Volvo's Worldwide Passenger Car Business ("Volvo Car")-
On March 31, 1999, we purchased Volvo Car for approximately $6.45
billion. The acquisition price consisted of a cash payment of
approximately $2 billion on March 31, 1999, a deferred payment
obligation to AB Volvo of approximately $1.6 billion due March 31,
2001, and Volvo Car automotive net indebtedness of approximately $2.9
billion. Most automotive indebtedness was repaid on April 12, 1999.
The purchase price payment and automotive debt repayments were funded
from our cash reserves.
Purchase of Kwik-Fit Holdings plc - During the third quarter of 1999,
we completed the purchase of all the outstanding stock of Kwik-Fit
Plc ("Kwik-Fit"). Kwik-Fit is Europe's largest independent vehicle
maintenance and light repair chain, with over 1,900 outlets in the
United Kingdom, Ireland, and continental Europe. The acquisition
price was approximately $1.6 billion and consisted of cash payments
of approximately $1.4 billion and loan notes to certain Kwik-Fit
shareholders of approximately $0.2 billion, redeemable beginning on
April 30, 2000 and on any subsequent interest payment date. The
purchase price payments were funded from our cash reserves.
Assuming these two acquisitions had taken place on January 1, 1999, Ford
Automotive unaudited pro forma revenue for the first quarter ended
March 31, 1999 would have been $35.2 billion. Net income and earnings per
share for this period would not be materially affected.
FS-7
<PAGE>
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(unaudited)
5. 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 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 from continuing operations
was as follows (in millions, except per share amounts):
<TABLE>
<CAPTION>
First Quarter 2000 First Quarter 1999
------------------------ ------------------------
Income Shares Income Shares
------------ ----------- ----------- ------------
<S> <C> <C> <C> <C>
Net income from continuing operations $1,932 1,206 $1,774 1,211
Preferred stock dividend requirements (4) - (4) -
Issuable and uncommitted ESOP shares - (7) - (5)
------ ----- ------ -----
Basic income and shares from continuing operations $1,928 1,199 $1,770 1,206
Basic income per share from continuing operations $ 1.61 $ 1.47
Basic income per share from discontinued operation 0.12 0.17
------ ------
Basic income per share $ 1.73 $ 1.64
Basic income and shares from continuing operations $1,928 1,199 $1,770 1,206
Net dilutive effect of options - 23 - 31
------ ----- ------ -----
Diluted income and shares from continuing operations $1,928 1,222 $1,770 1,237
Diluted income per share from continuing operations $ 1.58 $ 1.43
Diluted income per share from discontinued operation 0.12 0.17
------ ------
Diluted income per share $ 1.70 $ 1.60
</TABLE>
6. Automotive Inventories are summarized as follows (in millions):
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
---------------- -----------------
<S> <C> <C>
Raw materials, work in process and supplies $2,442 $2,035
Finished products 4,115 3,649
------ ------
Total inventories $6,557 $5,684
====== ======
U.S. inventories $2,287 $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.
FS-8
<PAGE>
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(unaudited)
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>
First Quarter
-----------------------------------
2000 1999
----------------- ----------------
<S> <C> <C>
Net income $2,079 $1,979
Other comprehensive income (596) (108)
------ ------
Total comprehensive income $1,483 $1,871
====== ======
</TABLE>
Effective January 1, 2000, the functional currency for Ford's automotive
operations in Brazil was changed from the U.S. dollar to the Brazilian
real in recognition of the primary currency of the environment in which
Ford will operate. The lower translated value of fixed assets and
inventories in the first quarter reduced other comprehensive income by
about $350 million.
9. 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
--------------------------------
First Quarter Auto Ford Other Elims/
Sector Credit Hertz Fin Svcs Other Total
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
2000
----
Revenues
External customer $ 36,175 $ 5,491 $ 1,131 $ 98 $ (1) $ 42,894
Intersegment 1,158 39 8 42 (1,247) 0
-------- -------- -------- ------- ------- --------
Total Revenues $ 37,333 $ 5,530 $ 1,139 $ 140 $(1,248) $ 42,894
======== ======== ======== ======= ======= ========
Net income a/ $ 1,552 $ 353 $ 56 $ (11) $ 129 $ 2,079
Total assets a/ $102,146 $161,735 $ 10,360 $ 8,108 $(7,325) $275,024
1999
----
Revenues
External customer $ 31,597 $ 4,863 $ 1,027 $ 56 $ 6 $ 37,549
Intersegment 1,069 57 8 47 (1,181) 0
-------- -------- -------- ------- ------- --------
Total Revenues $ 32,666 $ 4,920 $ 1,035 $ 103 $(1,175) $ 37,549
======== ======== ======== ======= ======= ========
Net income a/ $ 1,446 $ 300 $ 49 $ (12) $ 196 $ 1,979
Total assets a/ $ 91,366 $140,643 $ 9,293 $ 6,258 $(5,527) $242,033
</TABLE>
- - - - -
a/ Net income from discontinued operations of $147 million and $205
million for the three months ended March 31, 2000 and 1999 is
included in Elims/Other. Net assets from discontinued operations of
$1,644 million and $1,817 million as of March 31, 2000 and 1999 is
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".
10. Value Enhancement Plan - On April 13, 2000, the Ford Board of Directors
approved a plan that will offer Ford shareholders an exchange of old
shares of the company's stock for new shares of the company's Common Stock,
plus either $20 cash per share or new shares of equivalent value. Specific
details, including record and effective dates of the plan, will be
announced later in 2000.
FS-9
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