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 (Date of earliest event reported) October 20, 1995
----------------
FORD MOTOR CREDIT COMPANY
(Exact name of registrant as specified in its charter)
Delaware 1-6368 38-1612444
- ----------------------- ----------------------- -------------------
(State or other juris- (Commission File Number (IRS Employer
diction of incorporation Number) 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>
<PAGE 2>
ITEM 5. Other Events.
FORD MOTOR CREDIT COMPANY FINANCIAL STATEMENTS FOR THE PERIOD ENDED
SEPTEMBER 30, 1995.
The interim financial data presented herein are unaudited, but
in the opinion of management reflect all 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 for the year ended December 31,
1994 (the "10-K Report"). Information relating to earnings a share is not
presented because the registrant, Ford Motor Credit Company ("Ford
Credit"), is a wholly owned subsidiary of Ford Motor Company ("Ford").
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Condensed Consolidated Statement of Income
and of Earnings Retained for Use in the Business
For the Periods Ended September 30, 1995 and 1994
(in millions)
<TABLE>
<CAPTION>
Third Quarter Nine Months
1995 1994 1995 1994
--------- ---------- ---------- ----------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Financing Revenue
Operating leases $ 1,809.0 $ 1,405.3 $ 5,188.1 $ 3,776.8
Retail 935.7 830.7 2,657.5 2,420.3
Wholesale 318.4 226.3 1,061.3 661.6
Diversified 39.2 28.9 109.0 81.6
Other 82.6 69.3 247.9 193.3
---------- ---------- ---------- ----------
Total financing revenue 3,184.9 2,560.5 9,263.8 7,133.6
Investment and other income 145.7 89.4 379.9 366.9
---------- ---------- ---------- ----------
Total revenue 3,330.6 2,649.9 9,643.7 7,500.5
Expenses
Depreciation on operating leases 1,303.8 1,039.3 3,744.2 2,783.7
Interest expense 1,222.2 905.0 3,623.9 2,510.6
Operating expenses 242.1 247.2 712.4 690.6
Provision for credit losses 132.9 39.3 289.4 171.6
---------- ---------- ---------- ----------
Total expenses 2,901.0 2,230.8 8,369.9 6,156.5
---------- ---------- ---------- ----------
Equity in net income of affiliated
companies 67.7 61.4 174.7 166.2
Income before income taxes 497.3 480.5 1,448.5 1,510.2
Provision for income taxes 136.2 162.8 451.5 519.9
---------- ---------- ---------- ----------
Income before minority interest 361.1 317.7 997.0 990.3
Minority interest in net income of
subsidiaries 3.7 2.9 10.5 8.1
---------- ---------- ---------- ----------
Net income 357.4 314.8 986.5 982.2
Earnings retained for use in
the business
Beginning of period 6,478.3 5,567.3 5,849.2 4,899.9
Dividends (350.0) (250.0) (350.0) (250.0)
---------- ---------- ---------- ----------
End of period $ 6,485.7 $ 5,632.1 $ 6,485.7 $ 5,632.1
========== ========== ========== ==========
<FN>
Certain amounts for Third Quarter and Nine Months 1994 have been reclassified to conform
with presentations adopted in subsequent periods.
The accompanying notes are part of the financial statements.
</TABLE>
<PAGE>
<PAGE 3>
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance Sheet
(in millions)
<TABLE>
<CAPTION>
September 30, December 31, September 30,
1995 1994 1994
----------- ----------- -----------
ASSETS (Unaudited) (Unaudited)
<S> <C> <C> <C>
Cash and cash equivalents $ 564.3 $ 292.0 $ 628.4
Investments in securities 1,761.1 1,596.3 1,256.3
Finance receivables, net (Note 1) 59,280.2 56,946.5 55,256.9
Accounts and notes receivable from
affiliated companies 302.6 250.3 260.9
Equity in net assets of affiliated companies 1,617.0 1,346.5 1,297.3
Net investment, operating leases 23,890.4 19,993.9 18,566.5
Other assets 2,635.7 2,799.0 2,196.9
----------- ----------- -----------
Total assets $ 90,051.3 $ 83,224.5 $ 79,463.2
=========== =========== ===========
LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities
Accounts payable
Trade, customer deposits, and
dealer reserves $ 1,447.3 $ 1,326.5 $ 1,248.6
Affiliated companies 431.5 496.0 585.8
----------- ----------- -----------
Total accounts payable 1,878.8 1,822.5 1,834.4
Debt (Note 2) 75,512.3 70,440.4 67,205.7
Deferred income taxes 2,920.8 2,405.9 2,339.5
Other liabilities and deferred income 1,681.1 1,495.6 1,251.1
----------- ----------- -----------
Total liabilities 81,993.0 76,164.4 72,630.7
Minority interest in net assets of
subsidiaries 654.8 397.5 398.3
Stockholder's Equity
Capital stock, par value $100 a share,
250,000 shares authorized, issued and
outstanding 25.0 25.0 25.0
Paid-in surplus (contributions by stockholder) 917.3 917.3 917.3
Unrealized (loss)/gain on marketable
securities, net of taxes 23.0 (70.0) (53.2)
Foreign-currency translation adjustments (47.5) (58.3) (87.0)
Earnings retained for use in the business 6,485.7 5,848.6 5,632.1
----------- ----------- -----------
Total stockholder's equity 7,403.5 6,662.6 6,434.2
----------- ----------- -----------
Total liabilities and stockholder's
equity $ 90,051.3 $ 83,224.5 $ 79,463.2
=========== =========== ===========
<FN>
Certain amounts for Third Quarter and Nine Months 1994 have been reclassified to conform
with presentations adopted in subsequent periods.
The accompanying notes are part of the financial statements.
</TABLE>
<PAGE>
<PAGE 4>
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Consolidated Statement of Cash Flows
For the Periods Ended September 30, 1995 and 1994
(in millions)
<TABLE>
<CAPTION>
Nine Months
1995 1994
---------- ----------
(Unaudited)
<S> <C> <C>
Cash flows from operating activities
Net income $ 986.5 $ 982.2
Adjustments to reconcile net income to net
cash provided by operating activities
Provision for credit losses 289.4 171.6
Depreciation and amortization 3,909.8 2,934.4
Gain on sales of finance receivables (12.8) (6.2)
Gain on sale of investment 0 (58.3)
Equity in net income of affiliates (174.7) (166.2)
Deferred income taxes 513.4 201.4
Changes in the following items
Other assets 9.8 365.5
Other liabilities 229.2 139.8
Other 17.0 (46.1)
---------- ----------
Net cash provided by operating activities 5,767.6 4,518.1
---------- ----------
Cash flows from investing activities
Purchase of finance receivables (21,303.6) (20,278.7)
Collection of finance receivables 16,756.7 16,605.0
Proceeds from sales of finance receivables
and operating leases 2,728.3 2,009.3
Net change in wholesale receivables 11.9 (2,837.2)
Proceeds from sale of investment 0 142.1
Purchase of operating lease vehicles (12,608.0) (11,011.1)
Liquidation of operating lease vehicles 4,377.1 2,267.4
Other (192.8) 15.1
---------- ----------
Net cash used in investing activities (10,230.4) (13,088.1)
---------- ----------
Cash flows from financing activities
Proceeds from issuance of long-term debt 7,858.3 7,938.8
Principal payments on long-term debt (3,993.9) (6,462.0)
Change in short-term debt, net 943.4 6,687.5
Cash dividends paid (350.0) 0
Other 274.1 44.2
---------- ----------
Net cash provided by financing activities 4,731.9 8,208.5
---------- ----------
Effect of exchange rate changes on cash and cash
equivalents 3.2 (2.4)
---------- ----------
Net change in cash and cash equivalents 272.3 (363.9)
Cash and cash equivalents, beginning of period 292.0 992.3
---------- ----------
Cash and cash equivalents, end of period $ 564.3 $ 628.4
========== ==========
Supplementary cash flow information
Interest paid $ 3,531.3 $ 2,672.8
Taxes paid 52.8 373.7
<FN>
Certain amounts for Nine Months 1994 have been reclassified to conform with presentations
adopted in subsequent periods.
The accompanying notes are part of the financial statements.
</TABLE>
<PAGE>
<PAGE 5>
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Notes To Financial Statements
Note 1. Finance Receivables (in millions)
<TABLE>
<CAPTION>
September 30, December 31, September 30,
1995 1994 1994
----------- ----------- -----------
(Unaudited) (Unaudited)
<S> <C> <C> <C>
Retail $ 44,396.8 $ 40,566.6 $ 41,260.1
Wholesale 14,389.0 15,252.9 13,477.5
Diversified 2,784.0 2,738.2 2,564.1
Other 4,401.2 4,263.8 4,013.9
----------- ----------- -----------
Total finance receivables 65,971.0 62,821.5 61,315.6
Add loan origination costs 208.9 155.6 146.0
Less
Unearned income (6,254.1) (5,371.0) (5,470.2)
Allowance for credit losses (645.6) (659.6) (734.5)
----------- ----------- -----------
Finance receivables, net $ 59,280.2 $ 56,946.5 $ 55,256.9
=========== =========== ===========
</TABLE>
<PAGE>
<PAGE 6>
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Notes To Financial Statements (continued)
Note 2. Debt (in millions)
<TABLE>
<CAPTION>
September 30, December 31, September 30,
1995 1994 1994
----------- ----------- -----------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C>
PAYABLE WITHIN ONE YEAR:
Commercial paper $ 34,024.6 $ 33,228.9 $ 31,152.7
Other short-term debt* 1,412.7 1,136.0 1,055.8
----------- ----------- -----------
Total short-term debt 35,437.3 34,364.9 32,208.5
Senior and subordinated
notes and debentures
payable within one year 6,493.5 4,712.7 4,919.5
----------- ----------- -----------
Total payable within
one year 41,930.8 39,077.6 37,128.0
----------- ----------- -----------
September 30, 1995
----------------------------
Weighted Average
Interest Rates*** Maturities
---------------- ----------
PAYABLE AFTER ONE YEAR:
Unsecured senior notes
Notes** 7.01% 1996-2048 33,572.4 31,411.2 30,124.5
Unamortized premium/
(discount) 9.1 (48.4) (46.8)
----------- ----------- -----------
Total unsecured
senior notes 33,581.5 31,362.8 30,077.7
----------- ----------- -----------
Total payable
after one year 33,581.5 31,362.8 30,077.7
----------- ----------- -----------
Total debt $ 75,512.3 $ 70,440.4 $ 67,205.7
=========== =========== ===========
<FN>
* Includes $2.4 million with affiliated companies at September 30, 1994.
** Includes $1,149 million with affiliated companies at September 30, 1995.
*** Rates were variable on about 27.4% of the debt payable after one year including the
effects of interest rate swap agreements.
</TABLE>
<PAGE>
<PAGE 7>
FORD CREDIT THIRD QUARTER 1995 RESULTS OF OPERATIONS
Ford Credit's consolidated net income for the third quarter of 1995
was $357 million, up $42 million or 13% compared with $315
million in the third quarter of 1994. Income from financing
operations was $290 million, up $36 million or 14% from the same
period a year ago. Equity in net income of affiliated companies,
primarily Ford Holdings, Inc., was $68 million compared with $61
million in the same period a year ago.
Compared with results from a year ago, the increase in financing
profits in the third quarter of 1995 primarily reflected lower 1995
taxes resulting from prior year tax adjustments, higher financing
volumes, improved operating cost performance, and gains from sale
of receivables. Lower net interest margins and higher credit losses
were a partial offset. The tax adjustment primarily related to a credit
received in 1995 resulting from overestimating tax liabilities in 1994.
The higher level of earning assets primarily reflected increases in
operating leases and retail installment sale receivables. The lower
net interest margins reflected an increase in U.S. portfolio borrowing
rates from 5.5% to 6.5% offset partially by higher portfolio yields on
finance receivables and operating leases. Interest margins were
adversely affected because interest rates earned on finance
receivables, including operating leases net of depreciation, were
limited by competitive pressure in automotive financing. Credit
losses increased in the third quarter of 1995, reflecting higher losses
per repossessed unit and an increase in repossession rates.
Total gross finance receivables and net investment in operating
leases at September 30, 1995 were $89.9 billion, up $10.0 billion or
13% from a year earlier. The increase primarily reflected higher
levels of operating leases and retail installment sale receivables.
Depreciation expense on operating leases in the third quarter of 1995
was $1,304 million, up $264 million or 25% compared with the third
quarter of 1994. The increase reflected the higher levels of
operating leases and was more than offset by higher revenue earned
from the increased volume of lease contracts.
During the third quarter of 1995, Ford Credit financed 38.0% of all
new cars and trucks sold by Ford Motor Company dealers in the
United States, compared with 36.7% in the third quarter of 1994.
The increase reflected higher levels of retail installment sale
financing. Ford Credit provided retail financing for 658,000 new and
used vehicles in the United States, up 12% from a year ago. Ford
Credit also provided wholesale financing for 79.8% of Ford Motor
Company factory sales to U.S. car and truck dealers during the
quarter, compared with 82.9% in the same period a year ago.
<PAGE>
<PAGE 8>
FORD CREDIT FIRST NINE MONTHS 1995 RESULTS OF OPERATIONS
For the first nine months of 1995, Ford Credit's consolidated net
income was $986 million, up $4 million from $982 million in 1994.
Income from financing operations was $812 million, down $4 million
from the same period a year ago, resulting from lower net interest
margins, higher credit losses, and the non-recurrence of the one-time
gain from the sale of Ford Credit's investment in Manheim Auctions,
Inc. A higher level of earning assets, lower 1995 taxes resulting
from prior year tax adjustments and improved operating cost
performance were a partial offset. Equity in net income of affiliated
companies was $175 million compared with $166 million in 1994.
Depreciation expense in the first nine months of 1995 was $3,744
million, up $960 million or 35% compared with the first nine months
of 1994. The increase reflected the higher levels of operating leases
and was more than offset by higher revenue earned from the
increased volume of lease contracts. During the first nine months of
1995, Ford Credit provided retail financing for 36.8% of all new cars
and trucks sold by Ford Motor Company dealers in the United States,
compared with 37.0% in the same period a year ago. Ford Credit
provided U.S. retail financing for 1,892,000 new and used vehicles
compared with 1,798,000 vehicles in the first nine months of 1994.
Ford Credit also provided wholesale financing for 79.7% of Ford
Motor Company factory sales to U.S. car and truck dealers during
the first nine months of 1995, compared with 81.0% in the same
period last year.
FORD CREDIT LIQUIDITY AND CAPITAL RESOURCES
Ford Credit's outstanding debt at September 30, 1995 and at the end of each
of the last five years was as follows:
<TABLE>
<CAPTION>
Sept.30, December 31
1995 1994 1993 1992 1991 1990
---- ---- ---- ---- ---- ----
(in millions)
<S> <C> <C> <C> <C> <C> <C>
Commercial paper & STBA's(a) $34,086 $33,300 $24,506 $21,210 $18,232 $23,371
Other short-term debt 1,351 1,065 1,001 1,785 1,642 1,411
Long-term debt (including
current portion) (b) 40,075 36,075 33,292 26,961 28,455 26,209
------- ------- ------- ------- ------- -------
Total debt $75,512 $70,440 $58,799 $49,956 $48,329 $50,991
======= ======= ======= ======= ======= =======
1995 1995 1994 1993 1992 1991
---- ---- ---- ---- ---- ----
MEMO:
Total support facilities $27.4 $22.3 $16.9 $13.9 $13.8 $12.7
(billions -- as of July 1,
1995 and January 1,
1995-1991, respectively)
</TABLE>
- ------
(a) Short-term borrowing agreements with bank trust departments
(b) Includes $1,149 million with affiliated companies at September 30, 1995
Support facilities represent additional sources of funds, if required. At
September 30, 1995, Ford Credit had approximately $27.4 billion of
contractually committed facilities for use (which included $7.6 billion of
Ford bank lines that may be used by Ford Credit at Ford's option). These
facilities have various maturity dates trough June 2000. The entire $27.4
billion may be used, at Ford Credit's option, by its subsidiaries in Canada,
Australia, Mexico, New Zealand, Japan, and Puerto Rico. Any such borrowing
will be guaranteed by Ford Credit.<PAGE>
<PAGE 9>
INFORMATION CONCERNING FORD
Ford Motor Company news release dated October 18, 1995,
filed as Exhibit 20 to this Current Report on Form 8-K, is
incorporated by reference herein.
Fourth Quarter Outlook - Ford
-----------------------------
Ford Motor Company ("Ford") expects that its net income in the fourth
quarter of 1995 will be higher than its net income of $357 million in the
third quarter of 1995, but will be well below its net income of $1,569 in
the fourth quarter of 1994. Lower production in North America, the
continuation of major new product launches in North America (F-150) and in
Europe (Fiesta), higher costs associated with additional reductions in personnel
and continued adverse foreign exchange effects are expected to result in
lower earnings in the fourth quarter this year compared with a year ago.
Longer-Term Outlook - Ford
--------------------------
In the U.S., Ford expects that the strong growth experienced in 1994
will slow to a more sustainable pace in the 1995 to 1997 period, with
industry sales of 15 million or more units per year. In Europe, Ford
expects the economic recovery there to gain pace and industry volumes should
improve for the next several years.
While Ford's automotive margins have declined this year,
it expects them to improve in future years, as the benefits of Ford 2000
are realized.
ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits.
EXHIBITS
Designation Description Method of Filing
- ----------- ----------- ----------------
Exhibit 20 Ford Motor Company news Filed with this Report.
release dated October 18,
1995.
Exhibit 27 Financial Data Schedule 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 CREDIT COMPANY
(Registrant)
Date: October 20, 1995 By:/s/R. P. Conrad
-----------------
R. P. Conrad
Assistant Secretary
<PAGE>
<PAGE 10>
EXHIBIT INDEX
Designation Description
- ----------- -----------
Exhibit 20 Ford Motor Company news
release dated October 18,
1995.
Exhibit 27 Financial Data Schedule
Exhibit 20
Global News Communications
Ford Motor Company
The American Road
Room 904
Dearborn, MI 48121
Telephone: (313)322-9600
Fax: (313)845-0570
(313)337-1764
FOR RELEASE AT 8 A.M. (EASTERN) WEDNESDAY, OCT. 18
Contact: Media Inquiries Broadcast Media Stockholder Inquiries
Terry Bresnihan Brenda Hines Stockholder Relations
(313) 322-9600 (313) 322-9600 (313) 845-8540
FORD EARNS $357 MILLION IN THIRD QUARTER;
BRINGS NET TO $3.5 BILLION FOR NINE MONTHS
DEARBORN, Mich., Oct. 18 -- Ford earned $357 million or
$0.28 per share of common and Class B stock in the third quarter
of 1995, compared with earnings of $1.12 billion or $1.04 per
share for the third quarter of 1994.
In the first nine months of this year, Ford earned $3.5
billion, compared with $3.7 billion through the first nine months
of last year. Earnings per share for nine months were $3.13,
compared with $3.50 through nine months last year.
In the third quarter, lower production volumes, primarily in
the United States, had the single biggest impact on the company's
results. Ford's sales to dealers in the U.S. were 869,000 units,
down 123,000 units, or 12 percent, from the third quarter of
1994.
The decrease reflected unusually high production in the
year-ago period as well as units lost this quarter because of
major new model launches and component shortages.
The Financial Services Group achieved record earnings in
Ford Credit, The Associates and USL Capital. Hertz, a wholly
owned subsidiary of Ford, also posted record profitability in the
third quarter.
<PAGE>
-2-
SUMMARY OF THIRD-QUARTER 1995 COMPARED WITH 1994
Overview
- --------
- - Total earnings were $357 million, compared with $1.12
billion.
- - Earnings per share were $0.28, compared with $1.04.
- - Worldwide sales and revenues were $31.4 billion, compared
with $30.6 billion.
Automotive
- ----------
- - Worldwide automotive operations lost $201 million, compared
with a profit of $619 million.
- - Net income from U.S. automotive operations was $187 million,
compared with $553 million.
- - Automotive operations outside the U.S. lost $388 million,
compared with a profit of $66 million.
Financial Services Group
- ------------------------
- - The Financial Services Group earned $558 million, compared
with $505 million.
- - Ford Credit earned $357 million, compared with $315 million.
- - The Associates Corp. of North America earned $188 million,
compared with $162 million.
- - USL Capital earned $31 million, compared with $27 million.
- - Hertz earned $65 million, compared with $61 million.
Sales and Market Share
- ----------------------
- - Worldwide vehicle unit sales were 1,435,000, compared with
1,576,000.
- - Combined car and truck share in the U.S. was 24.8 percent,
compared with 25.2 percent.
- - Combined car and truck share in Europe was 12.9 percent,
compared with 12.8 percent.
Balance Sheet
- -------------
- - Stockholders' equity was $25 billion, compared with $20
billion.
- - Automotive cash and marketable securities were $12.2 billion,
compared with $13.9 billion.
- - Automotive debt was $6.8 billion, compared with $7.2 billion.
- - Automotive net cash was $5.4 billion, compared with $6.7
billion.
- - Capital spending was $2.3 billion, compared with $2.5
billion.<PAGE>
-3-
AUTOMOTIVE OPERATIONS
"This is clearly a transitional period for Ford in the near
term," said Alex Trotman, chairman and chief executive officer.
"We are in the process of launching a record wave of industry-
leading new products, including the Ford Taurus and Mercury Sable
and the replacement of the F-150 pick-up truck -- our highest
volume vehicle. In Europe, we are launching our all-new Galaxy
minivan and we are ramping up production of our new Fiesta.
Early feedback on customer reaction to these new products is very
positive."
Ford's worldwide automotive operations experienced a loss of
$201 million in the third quarter of 1995. This compares with
earnings of $619 million in the third quarter of last year.
In the U.S., Ford earned $187 million for the quarter, down
$366 million from a year earlier. The drop in production volumes
and costs associated with introducing new models accounted for
the decrease in earnings. Cost efficiencies partially offset
these factors.
In Europe, there was a loss of $320 million in automotive
operations, compared with a loss of $37 million a year earlier.
Europe's results were affected by lower volume and higher
marketing costs, the cost of introducing new models and currency
changes.
Outside of Europe and the U.S., Ford posted a loss of $68
million, compared with a profit of $103 million a year earlier.
The decline is primarily attributable to Brazil, where higher
import duties and a market shift to small cars have resulted in
excess inventories and higher marketing costs.
"Third-quarter results in our automotive operations were
weak but not unexpected," Trotman said. "Still, we are confident
about the future. Ford is in the midst of putting its most
impressive vehicle line-up ever on the streets, ready to compete
efficiently and effectively."
From now through early next year, the company is launching
the new Ford Taurus, Mercury Sable, F-150 pick-up truck, Ford
Escort and Mercury Tracer in North America, and the Ford Fiesta
and Galaxy in Europe.<PAGE>
-4-
In the U.S., the new products will represent about 35
percent of Ford's volume compared to more typical years when new
products represent about 10 to 15 percent of volume. And in
Europe, Fiesta is Ford's highest volume product.
"There will be costs associated with this record launch of
new models, but their introduction into what we believe will be
healthy industries in 1996 and 1997 will increase our
competitiveness in the highest volume segments in the business,"
Trotman said. "Every indication is that these core products will
do very well in their respective markets and contribute
significantly to our performance."
FINANCIAL SERVICES
Ford's Financial Services Group earned a record $558 million
in the third quarter of 1995, up $53 million from the year
earlier period.
Each of the major businesses in the Group set third-quarter
records. Ford Credit's profit of $357 million was up $42 million
from a year earlier. The Associates earned $188 million, up $26
million from a year earlier. USL Capital earned $31 million, up
$4 million from a year earlier.
"The Financial Services Group set an any-quarter earnings
record," Trotman said. "Even with intense pressure on margins
and the fierce competition in the financial services industry,
our Financial Services Group continues to be a powerful
contributor."
REENGINEERING OF COMPANY ON TRACK
Trotman said that Ford 2000 is progressing well on both
product and cost initiatives. "New processes and state-of-the-
art technology in product development will help us bring more new
vehicles to market at a much more cost-effective level than in
the past," he said. The company will also continue to apply new
manufacturing technologies to its worldwide production system to
ensure even higher levels of quality and bring more cost savings.
Trotman said that Ford is working cooperatively with
suppliers to help drive costs down. "There's much work to be
done in this area, but as we develop even closer associations
both our suppliers and Ford will benefit through improved
efficiency." <PAGE>
-5-
He also noted that the company's growth strategy saw some
impressive progress during the third quarter with initiatives in
a number of key emerging markets, including China, India, Korea,
Thailand and Vietnam.
"Our objective is enhancing value. We must give customers
more value for their money and our stockholders more value for
their investment," Trotman said. "The fundamentals and longer-
term prospects for Ford to achieve this objective remain
excellent."
# # #
10-18-95
<PAGE>
Ford Motor Company and Subsidiaries
HIGHLIGHTS
----------
<TABLE>
<CAPTION>
Third Quarter Nine Months
------------------------- -------------------------
1995 1994 1995 1994
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Worldwide vehicle unit sales of
cars and trucks (in thousands)
- - United States 869 992 3,038 3,167
- - Outside United States 566 584 1,978 1,979
----- ----- ----- -----
Total 1,435 1,576 5,016 5,146
===== ===== ===== =====
Sales and revenues (in millions)
- - Automotive $24,437 $24,926 $ 82,899 $79,371
- - Financial Services 6,981 5,696 19,691 15,425
------- ------- -------- -------
Total $31,418 $30,622 $102,590 $94,796
======= ======= ======== =======
Net income/(loss) (in millions)
- - Automotive $ (201) $ 619 $ 2,040 $ 2,794
- - Financial Services 558 505 1,439 945*
------- ------- -------- -------
Total $ 357 $ 1,124 $ 3,479 $ 3,739
======= ======= ======== =======
Capital expenditures (in millions)
- - Automotive $ 2,254 $ 2,426 $ 6,204 $ 5,906
- - Financial Services 76 50 223 171
------- ------- -------- -------
Total $ 2,330 $ 2,476 $ 6,427 $ 6,077
======= ======= ======== =======
Stockholders' equity at September 30
- - Total (in millions) $24,955 $19,985 $ 24,955 $19,985
- - After-tax return on Common and
Class B stockholders' equity 5.4% 26.7% 20.9% 33.1%
Automotive cash, cash equivalents,
and marketable securities at
September 30 (in millions) $12,241 $13,915 $ 12,241 $13,915
Automotive debt at September 30
(in millions) $ 6,829 $ 7,233 $ 6,829 $ 7,233
Automotive after-tax return on sales ** 2.5% 2.5% 3.5%
Shares of Common and Class B Stock
(in millions)
- - Average number outstanding 1,083 1,014 1,049 1,006
- - Number outstanding at September 30 1,090 1,017 1,090 1,017
AMOUNTS PER SHARE OF COMMON AND
CLASS B STOCK AFTER PREFERRED
STOCK DIVIDENDS
Income/(Loss)
- - Automotive $ (0.24) $ 0.54 $ 1.76 $ 2.56
- - Financial Services 0.52 0.50 1.37 0.94
------- ------- -------- -------
Total $ 0.28 $ 1.04 $ 3.13 $ 3.50
======= ======= ======== =======
Income assuming full dilution $ 0.27 $ 0.93 $ 2.85 $ 3.13
Cash dividends per share of Common
and Class B Stock $ 0.31 $ 0.225 $ 0.88 $ 0.65
</TABLE>
- - - - - -
*Includes a loss of $440 million related to the disposition
of Granite Savings Bank (formerly First Nationwide Bank)
**Results in this period were a loss
Segment results for 1994 have been adjusted to reflect reclassification of
certain tax amounts to conform with the 1995 presentation.
<PAGE>
Ford Motor Company and Subsidiaries
UNIT SALES
----------
For the Periods Ended September 30, 1995 and 1994
(in thousands)
<TABLE>
<CAPTION>
Third Quarter Nine Months
--------------------------- ------------------------
1995 1994 1995 1994
---------- ---------- ---------- --------
<S> <C> <C> <C> <C>
North America
United States
Cars 377 470 1,333 1,506
Trucks 492 522 1,705 1,661
----- ----- ----- -----
Total United States 869 992 3,038 3,167
Canada 46 56 178 206
Mexico 3 20 21 65
----- ----- ----- -----
Total North America 918 1,068 3,237 3,438
Europe
Britain 105 122 371 411
Germany 93 73 325 282
France 40 41 124 135
Spain 33 40 129 122
Italy 31 34 139 140
Other countries 58 60 212 210
----- ----- ----- -----
Total Europe 360 370 1,300 1,300
Other international
Brazil 45 44 153 121
Australia 41 30 107 87
Taiwan 27 20 90 76
Japan 14 13 44 37
Argentina 13 17 34 41
Other countries 17 14 51 46
----- ----- ----- -----
Total other international 157 138 479 408
----- ----- ----- -----
Total worldwide vehicle unit sales 1,435 1,576 5,016 5,146
===== ===== ===== =====
</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.
Third Quarter 1994 and Nine Months 1994 unit sales have been restated
to reflect the country where sold and to include sales of all Ford-badged
units. Previously, factory unit sales were reported in North America on
a "where sold" basis and overseas on a "where produced" basis. Also,
Ford-badged unit sales of certain unconsolidated subsidiaries (primarily
Autolatina -- Brazil and Argentina) were not previously reported.<PAGE>
Ford Motor Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
--------------------------------
For the Periods Ended September 30, 1995 and 1994
(in millions)
<TABLE>
<CAPTION>
Third Quarter Nine Months
------------------------- -------------------------
1995 1994 1995 1994
-------- -------- -------- --------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
AUTOMOTIVE
Sales $24,437 $24,926 $82,899 $79,371
Costs and expenses (Note 2)
Costs of sales 23,260 22,800 75,129 71,019
Selling, administrative, and other expenses 1,381 1,137 4,418 3,838
------- ------- ------- -------
Total costs and expenses 24,641 23,937 79,547 74,857
Operating (loss)/income (204) 989 3,352 4,514
Interest income 171 126 594 417
Interest expense 151 190 491 529
------- ------- ------- -------
Net interest income/(expense) 20 (64) 103 (112)
Equity in net (loss)/income of
affiliated companies (190) 84 (151) 193
Net expense from transactions with
Financial Services (42) (9) (101) (28)
------- ------- ------- -------
(Loss)/Income before income taxes - Automotive (416) 1,000 3,203 4,567
FINANCIAL SERVICES
Revenues 6,981 5,696 19,691 15,425
Costs and expenses
Interest expense 2,437 1,774 6,948 5,040
Depreciation 1,715 1,390 4,836 3,490
Operating and other expenses 1,421 1,245 4,049 3,292
Provision for credit and insurance losses 472 400 1,337 1,153
Loss on disposition of Granite Savings Bank
(formerly First Nationwide Bank) - - - 475
------- ------- ------- -------
Total costs and expenses 6,045 4,809 17,170 13,450
Net revenue from transactions with Automotive 42 9 101 28
------- ------- ------- -------
Income before income taxes - Financial Services 978 896 2,622 2,003
------- ------- ------- -------
TOTAL COMPANY
Income before income taxes 562 1,896 5,825 6,570
Provision for income taxes 157 737 2,198 2,723
------- ------- ------- -------
Income before minority interests 405 1,159 3,627 3,847
Minority interests in net income of subsidiaries 48 35 148 108
------- ------- ------- -------
<PAGE>
Net income 357 1,124 3,479 3,739
Preferred stock dividend requirements 55 72 196 216
------- ------- ------- -------
Income attributable to Common and Class B Stock $ 302 $ 1,052 $ 3,283 $ 3,523
======= ======= ======= =======
Average number of shares of Common and Class B
Stock outstanding 1,083 1,014 1,049 1,006
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
AFTER PREFERRED STOCK DIVIDENDS
Income $ 0.28 $ 1.04 $ 3.13 $ 3.50
======= ======= ======= =======
Income assuming full dilution $ 0.27 $ 0.93 $ 2.85 $ 3.13
Cash dividends $ 0.31 $ 0.225 $ 0.88 $ 0.65
</TABLE>
The accompanying notes are part of the financial statements.
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
--------------------------
(in millions)
September 30, December 31,
1995 1994
------------- ------------
ASSETS (unaudited)
<S> <C> <C>
Automotive
Cash and cash equivalents $ 6,621 $ 4,481
Marketable securities 5,620 7,602
-------- --------
Total cash, cash equivalents, and marketable securities 12,241 12,083
Receivables 2,886 2,548
Inventories (Note 3) 6,845 6,487
Deferred income taxes 2,980 3,062
Other current assets 1,917 2,006
Net current receivable from Financial Services 283 677
-------- --------
Total current assets 27,152 26,863
Equity in net assets of affiliated companies 3,454 3,554
Net property 29,972 27,048
Deferred income taxes 4,088 4,414
Other assets 7,149 6,760
-------- --------
Total Automotive assets 71,815 68,639
Financial Services
Cash and cash equivalents 1,943 1,739
Investments in securities 7,187 6,105
Net receivables and lease investments 144,117 130,356
Other assets 13,514 12,783
-------- --------
Total Financial Services assets 166,761 150,983
-------- --------
Total assets $238,576 $219,622
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive
Trade payables $ 10,637 $ 10,777
Other payables 1,994 2,280
Accrued liabilities 13,170 11,943
Income taxes payable 431 316
Debt payable within one year 793 155
-------- --------
Total current liabilities 27,025 25,471
Long-term debt 6,036 7,103
Other liabilities 25,706 24,920
Deferred income taxes 1,166 1,216
-------- --------
Total Automotive liabilities 59,933 58,710
Financial Services
Payables 2,953 2,361
Debt 135,912 123,713
Deferred income taxes 3,735 2,958
Other liabilities and deferred income 8,829 7,669
Net payable to Automotive 283 677
-------- --------
Total Financial Services liabilities 151,712 137,378
Preferred stockholders' equity in a subsidiary company 1,976 1,875
Stockholders' equity
Capital stock
Preferred Stock, par value $1.00 per share (aggregate
liquidation preference of $2.6 billion and $3.4 billion) * *
Common Stock, par value $1.00 per share (1,020 and 952 million shares issued) 1,020 952
Class B Stock, par value $1.00 per share (71 million shares issued) 71 71
Capital in excess of par value of stock 5,531 5,273
Foreign currency translation adjustments and other 800 189
Earnings retained for use in business 17,533 15,174
-------- --------
Total stockholders' equity 24,955 21,659
-------- --------
Total liabilities and stockholders' equity $238,576 $219,622
======== ========
</TABLE>
- - - - - -
*Less than $1 million
The accompanying notes are part of the financial statements.
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
----------------------------------------------
For the Periods Ended September 30, 1995 and 1994
(in millions)
Nine Months 1995 Nine Months 1994
---------------------- ---------------------
Financial Financial
Automotive Services Automotive Services
---------- --------- ---------- ---------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Cash and cash equivalents at January 1 $ 4,481 $ 1,739 $ 5,667 $ 2,555
Cash flows from operating activities before securities trading 6,796 9,171 10,717 6,852
Net sales/(purchases) of trading securities 1,982 256 (2,765) (18)
-------- -------- -------- --------
Net cash flows from operating activities 8,778 9,427 7,952 6,834
Cash flows from investing activities
Capital expenditures (6,204) (223) (5,906) (171)
Acquisitions of other companies - - - (426)
Acquisitions of receivables and lease investments - (71,414) - (64,310)
Collections of receivables and lease investments - 51,210 - 43,134
Proceeds from sales of receivables and lease investments - 2,728 - 2,526
Net acquisitions of daily rental vehicles - (1,672) - (1,013)
Purchases of securities (47) (4,748) (116) (9,515)
Sales and maturities of securities 50 3,748 252 8,970
Investing activity with Financial Services (237) - 9 -
Other (400) (171) 407 (536)
-------- -------- -------- --------
Net cash used in investing activities (6,838) (20,542) (5,354) (21,341)
Cash flows from financing activities
Cash dividends (1,120) - (869) -
Issuance of Common Stock 326 - 375 -
Changes in short-term debt 665 2,481 (795) 8,024
Proceeds from issuance of other debt 0 16,532 158 15,265
Principal payments on other debt (207) (7,931) (41) (10,262)
Financing activity with Automotive - 237 - (9)
Receipts from annuity contracts - 276 - 875
Other 6 139 (20) (389)
-------- -------- -------- -------
Net cash (used in)/provided by financing activities (330) 11,734 (1,192) 13,504
Effect of exchange rate changes on cash 136 (21) 441 169
Net transactions with Automotive/Financial Services 394 (394) (321) 321
-------- -------- -------- --------
Net increase/(decrease) in cash and cash equivalents 2,140 204 1,526 (513)
-------- -------- -------- --------
Cash and cash equivalents at September 30 $ 6,621 $ 1,943 $ 7,193 $ 2,042
======== ======== ======== ========
</TABLE>
The accompanying notes are part of the financial statements.
<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, 1994. 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 to conform with presentations adopted in
1995.
2.Selected Automotive costs and expenses are summarized
as follows (in millions):
Third Quarter Nine Months
----------------------- -----------------------
1995 1994 1995 1994
------ ------ ------ ------
Depreciation $622 $555 $1,816 $1,700
Amortization 731 408 2,072 1,532
3. Automotive inventories are summarized as follows (in millions):
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
------------- ------------
<S> <C> <C>
Raw materials, work in process and supplies $3,426 $3,192
Finished products 3,419 3,295
------ ------
Total inventories $6,845 $6,487
====== ======
U.S. inventories $2,987 $2,917
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Ford Credit's Condensed Consolidated Balance Sheet is unclassified. Therefore,
the following tags listed below are not applicable to Ford Credit: Current
Assets and Current Liabilities. Information relating to earnings a share is not
presented because Ford Credit is a wholly owned subsidiary of Ford Motor
Company.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 564
<SECURITIES> 1,761
<RECEIVABLES> 59,280
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 90,051
<CURRENT-LIABILITIES> 0
<BONDS> 75,512
<COMMON> 25
0
0
<OTHER-SE> 7,379
<TOTAL-LIABILITY-AND-EQUITY> 90,051
<SALES> 0
<TOTAL-REVENUES> 9,644
<CGS> 0
<TOTAL-COSTS> 8,370
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 289
<INTEREST-EXPENSE> 3,624
<INCOME-PRETAX> 1,448
<INCOME-TAX> 451
<INCOME-CONTINUING> 986
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 986
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
