News Release
Contact: Media Inquiries Securities Analysts Shareholder Inquiries
Karen Hampton Mike Holland 800-555-5259 or
313-594-4410 313-323-8221 313-845-8540
FOR IMMEDIATE RELEASE
FORD PROVIDES DETAIL ON SECOND QUARTER CHARGES
DEARBORN, Mich., July 13, 2000 - Ford Motor Company [NYSE: F] today disclosed
detail on the one-time charges it will incur in the second quarter of 2000.
Visteon Independence: Ford Motor Company will post an after-tax charge of
approximately $2.3 billion related to the distribution of the company's 100
percent interest in Visteon Corporation [NYSE: VC] to Ford shareholders on June
28. This amount reflects the difference between the carrying value of Ford's net
investment in Visteon and the market value of Visteon stock on the date of
distribution.
"Visteon's independence from Ford allows both organizations to focus on their
core businesses," said Jac Nasser, president and chief executive officer of Ford
Motor Company. "Visteon now can accelerate growth and become stronger by
competing for business across the entire industry."
European Charges: The company will post an after-tax charge of approximately $1
billion, approximately $1.6 billion before taxes, related to an extensive
business review of the Ford brand operations in Europe that was announced in
May. The pre-tax European charges include asset impairments of approximately
$1.1 billion as well as restructuring costs of $468 million, including employee
separations and other exit related costs.
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Financial News, The American Road, Dearborn, MI 48121-1899
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E-Mail: [email protected]; Internet: http://media.ford.com
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"With the plan in place to improve efficiency and reduce overcapacity as well as
fixed costs, and the acceleration of an extraordinary product offensive
representing 45 significant new products over the next five years, we are
confident our European operations are driving toward sustained profitable
growth," said Nasser.
The after-tax aggregate amount of these charges is expected to be approximately
$3.3 billion or approximately $2.70 per diluted common and Class B share.
These charges will be reflected in Ford Motor Company's second quarter results,
which will be released at 7 a.m. July 19.
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