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) April 17, 1996
----------------
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
March 31, 1996.
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements - 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,
1995 (the "10-K Report"). Information relating to earnings a share is not
presented because the registrant, Ford Motor Credit Company ("Ford
Credit"), is an indirect 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 March 31, 1996 and 1995
(in millions)
<TABLE>
<CAPTION>
First Quarter
1996 1995
---------- ----------
(Unaudited)
<S> <C> <C>
Financing Revenue
Operating leases $ 1,896.2 $ 1,661.9
Retail 931.0 829.1
Wholesale 314.2 341.8
Diversified 33.1 33.0
Other 92.0 80.5
---------- ----------
Total financing revenue 3,266.5 2,946.3
Investment and other income 137.9 112.6
---------- ----------
Total revenue 3,404.4 3,058.9
Expenses
Depreciation on operating leases 1,303.5 1,184.5
Interest expense 1,269.7 1,156.6
Operating expenses 266.0 270.2
Provision for credit losses 183.8 77.3
---------- ----------
Total expenses 3,023.0 2,688.6
---------- ----------
Equity in net income of affiliated
companies 48.8 58.6
Income before income taxes 430.2 428.9
Provision for income taxes 131.9 137.9
---------- ----------
Income before minority interest 298.3 291.0
Minority interest in net income of
subsidiaries 5.1 3.1
---------- ----------
Net income 293.2 287.9
<PAGE>
Earnings retained for use in
the business
Beginning of period 6,643.8 5,848.6
Dividends 0 0
---------- ----------
End of period $ 6,937.0 $ 6,136.5
========== ==========
<FN>
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>
March 31, December 31, March 31,
1996 1995 1995
----------- ----------- -----------
ASSETS (Unaudited) (Unaudited)
<S> <C> <C> <C>
Cash and cash equivalents $ 966.7 $ 1,355.9 $ 147.6
Investments in securities 2,685.0 1,914.1 1,638.9
Finance receivables, net (Note 1) 61,902.3 61,043.8 59,551.6
Net investment, operating leases 25,724.6 24,810.8 21,680.1
Accounts and notes receivable from
affiliated companies (Note 3) 1,569.7 420.7 386.4
Equity in net assets of affiliated
companies (Note 3) 95.2 1,728.0 1,456.9
Other assets 3,457.1 3,293.4 2,620.8
----------- ----------- -----------
Total assets $ 96,400.6 $ 94,566.7 $ 87,482.3
=========== =========== ===========
LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities
Accounts payable
Trade, customer deposits, and
dealer reserves $ 1,725.1 $ 1,579.4 $ 1,406.3
Affiliated companies 636.3 608.7 448.4
----------- ----------- -----------
Total accounts payable 2,361.4 2,188.1 1,854.7
Debt (Note 2) 79,769.0 79,167.1 74,133.0
Deferred income taxes 3,314.5 3,027.0 2,592.3
Other liabilities and deferred income 1,883.9 1,913.6 1,406.3
Unearned insurance premiums 371.5 0 0
----------- ----------- -----------
Total liabilities 87,700.3 86,295.8 79,986.3
Minority interest in net assets of
subsidiaries 894.6 717.2 496.2
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) (Note 3) 2,719.3 917.3 917.3
Note receivable from affiliated
company (Note 3) (1,859.0) 0 0
Unrealized gain/(loss) on marketable
securities, net of taxes 41.0 30.9 (18.1)
Foreign-currency translation adjustments (57.6) (63.3) (60.9)
Earnings retained for use in the business 6,937.0 6,643.8 6,136.5
----------- ----------- -----------
Total stockholder's equity 7,805.7 7,553.7 6,999.8
----------- ----------- -----------
Total liabilities and stockholder's
equity $ 96,400.6 $ 94,566.7 $ 87,482.3
=========== =========== ===========
<FN>
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 March 31, 1996 and 1995
(in millions)
<TABLE>
<CAPTION>
First Quarter
1996 1995
---------- ----------
(Unaudited)
<S> <C> <C>
Cash flows from operating activities
Net income $ 293.2 $ 287.9
Adjustments to reconcile net income to net
cash provided by operating activities
Provision for credit losses 183.8 77.3
Depreciation and amortization 1,369.0 1,232.8
Equity in net income of affiliates (48.8) (58.6)
Deferred income taxes 251.8 187.8
Changes in the following items
Other assets 172.5 24.6
Other liabilities (159.3) (52.2)
Other (57.4) 10.7
---------- ----------
Net cash provided by operating activities 2,004.8 1,710.3
---------- ----------
Cash flows from investing activities
Purchase of finance receivables (other than wholesale) (9,587.1) (5,755.1)
Collection of finance receivables (other than wholesale) 6,973.4 5,339.7
Purchase of operating lease vehicles (4,509.4) (4,300.7)
Liquidation of operating lease vehicles 2,249.9 1,428.9
Proceeds from sale of receivables 1,753.7 0
Cash received from donation of TARIC 181.8 0
Net change in wholesale receivables (264.2) (2,213.5)
Other (30.4) (38.2)
---------- ----------
Net cash used in investing activities (3,232.3) (5,538.9)
---------- ----------
Cash flows from financing activities
Proceeds from issuance of long-term debt 3,748.7 3,756.2
Principal payments on long-term debt (1,340.0) (2,042.1)
Change in short-term debt, net (1,789.7) 1,887.4
Other 218.6 83.8
---------- ----------
Net cash provided by financing activities 837.6 3,685.3
---------- ----------
Effect of exchange rate changes on cash and cash
equivalents 0.7 (1.1)
---------- ----------
Net change in cash and cash equivalents (389.2) (144.4)
Cash and cash equivalents, beginning of period 1,355.9 292.0
---------- ----------
Cash and cash equivalents, end of period $ 966.7 $ 147.6
========== ==========
Supplementary cash flow information
Interest paid $ 1,363.8 $ 1,166.2
Taxes (refunded)/paid (123.2) 81.8
<FN>
Certain amounts for First Quarter 1995 have been restated to reflect changes 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, Net (in millions)
<TABLE>
<CAPTION>
March 31, December 31, March 31,
1996 1995 1995
----------- ----------- -----------
(Unaudited) (Unaudited)
<S> <C> <C> <C>
Retail $ 40,382.8 $ 38,350.0 $ 36,028.6
Wholesale 15,034.9 16,506.9 17,466.4
Diversified 2,203.1 2,225.4 2,260.1
Other 4,947.9 4,630.6 4,444.3
----------- ----------- -----------
Total finance receivables 62,568.7 61,712.9 60,199.4
Less allowance for credit losses (666.4) (669.1) (647.8)
----------- ----------- -----------
Finance receivables, net $ 61,902.3 $ 61,043.8 $ 59,551.6
=========== =========== ===========
/TABLE
<PAGE>
<Page 6> FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Notes To Financial Statements (continued)
Note 2. Debt (in millions)
<TABLE>
<CAPTION>
March 31, December 31, March 31,
1996 1995 1995
----------- ----------- -----------
(Unaudited) (Unaudited)
<S> <C> <C> <C>
PAYABLE WITHIN ONE YEAR:
Commercial paper $ 33,152.7 $ 34,978.3 $ 35,049.5
Other short-term debt* 1,580.6 1,523.1 1,199.9
----------- ----------- -----------
Total short-term debt 34,733.3 36,501.4 36,249.4
Senior notes payable
within one year 7,052.1 6,626.9 4,014.7
----------- ----------- -----------
Total payable within
one year 41,785.4 43,128.3 40,264.1
----------- ----------- -----------
March 31, 1996
----------------------------
Weighted Average
Interest Rates** Maturities
---------------- ----------
<C> <C>
PAYABLE AFTER ONE YEAR:
Unsecured senior notes
Notes*** 6.72% 1997-2048 37,938.3 36,003.6 33,906.3
Debentures 2.81 2001-2005 46.8 29.1 0
Unamortized
(discount)/premium (1.5) 6.1 (37.4)
----------- ----------- -----------
Total payable
after one year 37,983.6 36,038.8 33,868.9
----------- ----------- -----------
Total debt $ 79,769.0 $ 79,167.1 $ 74,133.0
=========== =========== ===========
<FN>
* Includes $39.4 million, $35.9 million, and $0 million with an affiliated company at
March 31, 1996, December 31, 1995, and March 31, 1995, respectively.
** Rates were variable on about 14.8% of the debt payable after one year including the
effects of interest rate swap agreements.
*** Includes $1,185.4 million, $1,174.4 million, and $394.0 million with affiliated
companies at March 31, 1996, December 31, 1995, and March 31, 1995, respectively.
/TABLE
<PAGE>
<Page 7> FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Notes To Financial Statements
Note 3. Equity Investment in Ford Holdings
On February 28, 1996, Ford Holdings, Inc. (FHI) purchased substantially all
of Ford Credit's common stock interest in FHI for $2,891.0 million. FHI
issued a promissory note to Ford Credit for the purchase amount. On
April 2, 1996, Ford Credit received a cash payment on the note of $1,032.0
million. The excess of the market value of the FHI investment over the
book value ($1,238.2 million) is included in paid in surplus. The unpaid
portion of the promissory note ($1,859.0 million) is reflected as a
reduction to stockholder's equity. Additionally, The American Road
Insurance Company ("TARIC") was contributed to Ford Credit on March 29,
1996. The transaction was recorded by Ford Credit at Taric's book value
and is included in paid in surplus. A reconciliation of paid in surplus is
as follows:
<TABLE>
<CAPTION>
Paid in Surplus
---------------
(in millions)
<S> <C>
Balance at December 31, 1995 $ 917.3
Add:
Excess of market value over
book value of FHI common stock 1,238.2
Contribution of TARIC 563.8
----------
Balance at March 31, 1996 $ 2,719.3
==========
/TABLE
<PAGE>
<PAGE 8>
FORD CREDIT FIRST QUARTER 1996 RESULTS OF OPERATIONS
Ford Credit's consolidated net income for the first quarter of 1996 was $293
million, up $5 million or 2% compared with $288 million in the first quarter
of 1995. Compared with results from a year ago, the increase in net income
reflects primarily a higher level of earning assets and higher portfolio net
interest margins, offset partially by an increase in credit losses.
The increase in earning assets reflects a higher level of operating leases and
retail installment sale receivables, offset partially by a lower level of
wholesale receivables. Total net finance receivables and net investment in
operating leases at March 31, 1996 were $87.6 billion, up $6.4 billion or 8%
from a year earlier. Depreciation expense on operating leases in the first
quarter of 1996 was $1,304 million, up $119 million or 10% compared with the
first quarter of 1995. The increase in depreciation expense reflects the
higher levels of operating leases and is more than offset by higher revenue
earned from the increased volume of lease contracts.
The higher net interest margins reflects higher portfolio yields on finance
receivables and operating leases offset partially by an increase in U.S.
portfolio borrowing rates from 6.3% to 6.4%. The deterioration in credit
losses reflects an increase in losses per repossession and an increase in
repossession rates. Credit losses as a percent of average net finance
receivables including net investment in operating leases were 0.67% in the
first quarter of 1996 compared with 0.37% in the first quarter of 1995.
During the first quarter of 1996, Ford Credit financed 38.6% of all new cars
and trucks sold by Ford Motor Company dealers in the United States, compared
with 36.0% in the first quarter of 1995. The increase resulted primarily from
higher levels of retail installment sale financing offset partially by lower
levels of operating lease financing. Ford Credit provided retail financing
for 678,000 new and used vehicles in the United States, up 19% from a year
ago. Ford Credit also provided wholesale financing for 77.2% of Ford Motor
Company factory sales to U.S. car and truck dealers during the quarter,
compared with 78.2% in the same period a year ago.
In the first quarter of 1996, equity in net income of affiliated companies
(primarily Ford Holdings) was $49 million compared with $59 million in the
first quarter of 1995. The decrease reflects the repurchase by Ford Holdings
of substantially all of the shares of Ford Holdings common stock owned by
Ford Credit on February 28, 1996. Ford Holdings issued a promissory note to
Ford Credit for the purchase amount. Additionally, American Road was
contributed to Ford Credit on March 29, 1996.
FORD CREDIT LIQUIDITY AND CAPITAL RESOURCES
Ford Credit's outstanding debt at March 31, 1996 and at the end of each of
the last five years was as follows:
<TABLE>
<CAPTION>
December 31
Mar 31, -------------------------------------------
1996 1995 1994 1993 1992 1991
------- ------- ------- ------- ------- -------
(in millions)
<S> <C> <C> <C> <C> <C> <C>
Commercial paper & STBA's(a) $33,153 $35,038 $33,300 $24,506 $21,210 $18,232
Other short-term debt (b) 1,581 1,463 1,065 1,001 1,785 1,642
Long-term debt (including
current portion)(c) 45,035 42,666 36,075 33,292 26,961 28,455
------- ------- ------- ------- ------- -------
Total debt $79,769 $79,167 $70,440 $58,799 $49,956 $48,329
======= ======= ======= ======= ======= =======
1996 1995 1994 1993 1992 1991
------- ------- ------- ------- ------- -------
<PAGE>
Memo:
Total support facilities $27.4 $27.4 $22.3 $16.9 $13.9 $13.8
(billions -- as of
March 31, 1996 and
December 31, 1995-1991,
respectively)
<FN>
- - - - - -
(a) Short-term borrowing agreements with bank trust departments.
(b) Includes $39 million, $36 million, $150 million, and $800 million with affiliated
companies at March 31, 1996, December 31, 1995, December 31, 1993, and
December 31, 1992, respectively.
(c) Includes $1,185 million and $1,174 million with affiliated companies at
March 31, 1996 and December 31, 1995, respectively.
</TABLE>
Support facilities represent additional sources of funds, if required. At
March 31, 1996, 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 either by Ford Credit or Ford's option).
These facilities have various maturity dates through June 2000. The entire
$27.4 billion may be used, at Ford Credit's option, by its subsidiaries in
Canada, Australia, Mexico, 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 April 17, 1996,
filed as Exhibit 20 to this Current Report on Form 8-K, is
incorporated by reference herein.
ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits.
EXHIBITS
Designation Description Method of Filing
- ----------- ----------- ----------------
Exhibit 20 Ford Motor Company news Filed with this Report.
release dated April 17,
1996.
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: April 25, 1996 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 April 17,
1996.
Exhibit 27 Financial Data Schedule
EXHIBIT 20
FORD
NEWS FOR IMMEDIATE RELEASE
Contact:
Media Inquiries: Broadcast Media: Stockholder Inquiries:
Christian Vinyard Lin Cummins (313) 845-8540
(313) 322-9600 (313) 322-9600
FORD EARNS $653 MILLION IN FIRST QUARTER
DEARBORN, Mich., April 17 -- Financial Services posted
record earnings for the first quarter of 1996, while automotive
operations reflected the impact of lower production volumes from
dealer inventory rebalancing, high-volume product launches in
North America and Europe, and lower overseas results primarily in
Brazil.
In the first quarter, Ford earned $653 million, or 53 cents
per fully-diluted share of common and Class B stock. This
compares with $1.55 billion, or $1.28 per fully-diluted share in
the first quarter of 1995. Net income from automotive operations
was $142 million, and net income from financial services was $511
million.
"We've nearly completed an important series of high-volume
launches that will leave our product line-up the strongest it's
ever been and the most attractive for our customers," said
Chairman and Chief Executive Officer Alex Trotman. "At the same
time, our cost reduction efforts will help improve our financial
results in the coming quarters."
Last July, Ford outlined its lower expectations for the last
half of 1995 and the first quarter of 1996. "During this period,
our profits declined, but assuming that moderate economic growth
continues in Ford's major markets, the remainder of 1996 should
see our financial results significantly improving," Trotman said.
<PAGE>
<PAGE>
-2-
SUMMARY OF FIRST QUARTER 1996 COMPARED WITH FIRST-QUARTER 1995
Overview
- --------
- - Total earnings were $653 million, compared with $1.55 billion in
the first quarter of 1995.
- - Fully-diluted earnings were 53 cents per share, compared with $1.28
per share.
- - Worldwide sales and revenues were $36.3 billion, compared with
$34.8 billion.
- - Stockholders' equity was $24.5 billion, compared with $23.5 billion
a year ago.
Automotive
- ----------
- - Net income from worldwide automotive operations was $142 million,
compared with $1.14 billion. After-tax return on sales was 0.5
percent, compared with four percent.
- - Net income from U.S. automotive operations was $48 million,
compared with $825 million.
- - Net income from automotive operations outside the U.S. was $94
million, compared with $316 million.
- - Worldwide vehicle unit sales were 1,638,000, compared with
1,770,000 units.
- - Combined car and truck share in the U.S. was 25.8 percent, compared
with 26.6 percent.
- - Combined car and truck share in Europe was 12.2 percent, compared
with 12.5 percent.
Financial Services Group
- ------------------------
- - Financial Services Group earned $511 million, a first-quarter
record, compared with $409 million in 1995.
- - Ford Credit earned $293 million, compared with $288 million.
- - Associates First Capital Corporation, together with the
international affiliates it manages, earned $192 million,
compared with $168 million.
- - USL Capital earned $40 million, compared with $26 million.
Automotive Balance Sheet
- ------------------------
- - Cash and marketable securities were $12.9 billion, compared with
$13.2 billion a year ago.
- - Debt was $7.2 billion, compared with $7.1 billion.
- - Net cash was $5.7 billion, compared with $6.1 billion.
- - Capital spending was $1.8 billion, compared with $2.1 billion in
the first quarter a year ago.
<PAGE>
<PAGE>
-3-
AUTOMOTIVE OPERATIONS
Ford's first-quarter income from worldwide operations was $142
million, down about $1 billion from the first quarter of
1995. U.S. automotive operations earned $48 million, down
$777 million from a year ago. The decline stems from lower
production volumes from dealer inventory rebalancing and
costs associated with high-volume product launches.
Outside the U.S., automotive operations earned $94 million, down
$222 million from a year ago. In Europe, Ford earned $73
million, down $92 million from the same period last year.
The decline in Europe reflects costs of launching new high-
volume products.
Results in Brazil were impacted by the lack of a domestically-
produced small car. Introduction of the Ford Fiesta, produced in
Brazil, is scheduled for May.
Customer responses to new products throughout the world were
strong. "The initial success of our highest-volume products
in Europe and North America -- the new Ford Fiesta and the
new F-Series -- is nothing short of sensational," Trotman
said. The Ford Explorer, with 14 consecutive monthly
records, also set a record for the first quarter.
Car sales in large-volume segments also showed strength.
"Despite the planned reduction in daily rental volumes,
Taurus was the best-selling car in America during the first
quarter of 1996 as well as for the first half of the 1996
model year and all of 1995," Trotman noted. The Ford
Contour had its best month ever in March, and combined sales
for Contour and the Mercury Mystique set records both for
March and the first quarter.
On April 12, Ford and Mazda announced an agreement to strengthen
their relationship, with Ford increasing its equity position
in Mazda from 24.5 to 33.4 percent.
FINANCIAL SERVICES
Financial Services Group earned $511 million, a record for any
first quarter. These results compare with earnings of $409
million in the first quarter of 1995.
"Once again, our world-class Financial Services Group set another
record in the first quarter," Trotman said. "First-quarter
profits were up year-to-year at all businesses in the
group."
<PAGE>
<PAGE>
-4-
Ford Credit earned $293 million, an increase of $5 million from
the prior year. The Associates reported a record first-
quarter profit of $192 million, up 14 percent from $168
million earned in last year's first quarter. USL Capital
posted a first-quarter record of $40 million, an increase of
54 percent from the $26 million posted in 1995's first
quarter.
In February, Associates First Capital Corporation filed a
registration statement with the Securities and Exchange
Commission for an initial public offering of up to 19.8
percent of its common stock. The Associates is a leading
diversified finance company with assets of more than $40
billion. Ford purchased The Associates in 1989.
"The partial sale of The Associates represents an important
strategic decision for Ford," Trotman said. "The actions
that we are taking will establish a market value for this
important Ford asset and will strengthen Ford's already
strong balance sheet."
Ford also is continuing to study the partial or complete sale of
USL Capital.
THE STRENGTHS OF FORD
Looking ahead, Trotman said, "Our strategies are the right ones
for this time in our history. Our product line around the
world is being revitalized, and our cost-cutting efforts
will soon begin to pay off."
"We do not manage this business for quarter-to-quarter results,"
Trotman said. Over the last 10, 20 and 40 years, Ford's
average annual total return to shareholders has exceeded the
major stock indexes as well as the performance of the other
U.S. automakers.
"The best time to make fundamental change is when a company's
financial position is strong," Trotman said. "Our balance
sheet is solid, our dividend is the most attractive in the
industry, our pension plans are fully funded, and our credit
rating is the highest among U.S. automakers. The automotive
and financial services businesses always have been highly
competitive, and will continue to be so in the future. But,
with the fundamental changes we have made and are making,
Ford is positioning itself to become an even stronger
competitor," he said.
# # #
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
HIGHLIGHTS
----------
First Quarter
-----------------------
1996 1995
------- -------
(unaudited)
<S> <C> <C>
Worldwide vehicle unit sales of
cars and trucks (in thousands)
- - United States 940 1,087
- - Outside United States 698 683
----- -----
Total 1,638 1,770
===== =====
Sales and revenues (in millions)
- - Automotive $29,333 $28,601
- - Financial Services 6,928 6,182
------- -------
Total $36,261 $34,783
======= =======
Net income (in millions)
- - Automotive $ 142 $ 1,141
- - Financial Services 511 409
------- -------
Total $ 653 $ 1,550
======= =======
Capital expenditures (in millions)
- - Automotive $ 1,789 $ 2,131
- - Financial Services 113 67
------- -------
Total $ 1,902 $ 2,198
======= =======
Stockholders' equity at March 31
- - Total (in millions) $24,540 $23,552
- - After-tax return on Common and
Class B stockholders' equity 10.7% 30.9%
Automotive cash, cash equivalents
and marketable securities at
March 31 (in millions) $12,937 $13,254
Automotive debt at March 31
(in millions) $ 7,175 $ 7,102
Automotive after-tax return on sales 0.5% 4.0%
Shares of Common and Class B Stock
(in millions)
- - Average number outstanding 1,168 1,025
- - Number outstanding at March 31 1,175 1,027
AMOUNTS PER SHARE OF COMMON AND
CLASS B STOCK AFTER PREFERRED
STOCK DIVIDENDS
Income $ 0.54 $ 1.44
Income assuming full dilution
- - Automotive $ 0.11 $ 0.94
- - Financial Services 0.42 0.34
------- -------
Total $ 0.53 $ 1.28
======= =======
Cash dividends $ 0.35 $ 0.26
</TABLE>
FS-1
<PAGE>
<TABLE>
<capiton>
Ford Motor Company and Subsidiaries
VEHICLE UNIT SALES
------------------
For the Periods Ended March 31, 1996 and 1995
(in thousands)
First Quarter
-----------------------
1996 1995
------- -------
(unaudited)
<S> <C> <C>
North America
United States
Cars 378 509
Trucks 562 578
----- -----
Total United States 940 1,087
Canada 50 65
Mexico 12 11
----- -----
Total North America 1,002 1,163
Europe
Germany 118 118
Britain 118 104
Italy 56 52
France 51 44
Spain 48 48
Other countries 84 77
----- -----
Total Europe 475 443
Other international
Brazil 47 62
Australia 32 31
Taiwan 31 28
Japan 16 16
Argentina 16 10
Other countries 19 17
----- -----
Total other international 161 164
----- -----
Total worldwide vehicle unit sales 1,638 1,770
===== =====
</TABLE>
Vehicle unit sales are reported worldwide on a "where sold" basis and
include sales of all Ford-badged units, as well as units manufactured
by Ford and sold to other manufacturers.
FS-2
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
--------------------------------
For the Periods Ended March 31, 1996 and 1995
(in millions)
First Quarter
-------------------------
1996 1995
-------- --------
(unaudited)
<S> <C> <C>
AUTOMOTIVE
Sales $29,333 $28,601
Costs and expenses (Note 2)
Costs of sales 27,546 25,431
Selling, administrative and other expenses 1,472 1,388
------- -------
Total costs and expenses 29,018 26,819
Operating income 315 1,782
Interest income 184 207
Interest expense 172 166
------- -------
Net interest income 12 41
Equity in net (loss)/income of affiliated companies (52) 20
Net expense from transactions with Financial Services (20) (23)
------- -------
Income before income taxes - Automotive 255 1,820
FINANCIAL SERVICES
Revenues 6,928 6,182
Costs and expenses
Interest expense 2,421 2,167
Depreciation 1,691 1,521
Operating and other expenses 1,428 1,336
Provision for credit and insurance losses 576 422
------- -------
Total costs and expenses 6,116 5,446
Net revenue from transactions with Automotive 20 23
------- -------
Income before income taxes - Financial Services 832 759
------- -------
TOTAL COMPANY
Income before income taxes 1,087 2,579
Provision for income taxes 413 988
------- -------
Income before minority interests 674 1,591
Minority interests in net income of subsidiaries 21 41
------- -------
Net income $ 653 $ 1,550
======= =======
Income attributable to Common and Class B Stock
after preferred stock dividends $ 634 $ 1,478
Average number of shares of Common and Class B
Stock outstanding 1,168 1,025
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
Income $ 0.54 $ 1.44
Income assuming full dilution $ 0.53 $ 1.28
Cash dividends $ 0.35 $ 0.26
</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,
1996 1995
----------- ------------
(unaudited)
<S> <C> <C>
ASSETS
Automotive
Cash and cash equivalents $ 6,074 $ 5,750
Marketable securities 6,863 6,656
-------- --------
Total cash, cash equivalents and marketable securities 12,937 12,406
Receivables 3,463 3,321
Inventories (Note 3) 7,182 7,162
Deferred income taxes 2,952 2,709
Other current assets 2,206 1,483
Net current receivable from Financial Services 134 200
-------- --------
Total current assets 28,874 27,281
Equity in net assets of affiliated companies 2,157 2,248
Net property 31,446 31,273
Deferred income taxes 4,584 4,802
Other assets 7,285 7,168
-------- --------
Total Automotive assets 74,346 72,772
Financial Services
Cash and cash equivalents 2,066 2,690
Investments in securities 4,470 4,553
Net receivables and lease investments 153,467 149,694
Other assets 13,655 13,574
-------- --------
Total Financial Services assets 173,658 170,511
-------- --------
Total assets $248,004 $243,283
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive
Trade payables $ 11,635 $ 11,260
Other payables 1,704 1,976
Accrued liabilities 13,584 13,392
Income taxes payable 351 316
Debt payable within one year 1,676 1,832
-------- --------
Total current liabilities 28,950 28,776
Long-term debt 5,499 5,475
Other liabilities 27,631 25,677
Deferred income taxes 1,206 1,186
-------- --------
Total Automotive liabilities 63,286 61,114
Financial Services
Payables 3,479 5,476
Debt 145,628 141,317
Deferred income taxes 4,123 3,831
Other liabilities and deferred income 6,133 6,116
Net payable to Automotive 134 200
-------- --------
Total Financial Services liabilities 159,497 156,940
<PAGE>
Company-obligated mandatorily redeemable preferred securities of
a subsidiary trust (aggregate principal amount of $632 million) 681 682
Stockholders' equity
Capital stock
Preferred Stock, par value $1.00 per share (aggregate liquidation
preference of $833 million and $1,042 million) * *
Common Stock, par value $1.00 per share (1,105 and 1,089 million shares issued) 1,105 1,089
Class B Stock, par value $1.00 per share (71 million shares issued) 71 71
Capital in excess of par value of stock 5,129 5,105
Foreign currency translation adjustments and other 322 594
Earnings retained for use in business 17,913 17,688
-------- --------
Total stockholders' equity 24,540 24,547
-------- --------
Total liabilities and stockholders' equity $248,004 $243,283
======== ========
</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, 1996 and 1995
(in millions)
First Quarter 1996 First Quarter 1995
---------------------- ---------------------
Financial Financial
Automotive Services Automotive Services
---------- --------- ---------- --------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Cash and cash equivalents at January 1 $ 5,750 $ 2,690 $ 4,481 $ 1,739
Cash flows from operating activities before securities trading 2,916 3,014 3,650 3,284
Net (purchases)/sales of trading securities (197) 281 4,289 324
------- -------- ------- --------
Net cash flows from operating activities 2,719 3,295 7,939 3,608
Cash flows from investing activities
Capital expenditures (1,789) (113) (2,131) (67)
Acquisitions of receivables and lease investments - (28,164) - (23,988)
Collections of receivables and lease investments - 20,949 - 15,839
Net acquisitions of daily rental vehicles - (989) - (781)
Purchases of securities (10) (3,433) (18) (1,818)
Sales and maturities of securities 0 3,217 9 1,337
Proceeds from sales of receivables - 1,775 - 0
Net investing activity with Financial Services (3) - (174) -
Other (97) 209 (442) (127)
------- -------- ------- --------
Net cash used in investing activities (1,899) (6,549) (2,756) (9,605)
Cash flows from financing activities
Cash dividends (428) - (338) -
Issuance of Common Stock 40 - 96 -
Changes in short-term debt (158) 34 217 2,408
Proceeds from issuance of other debt 14 6,126 0 6,674
Principal payments on other debt (3) (3,462) (207) (3,239)
Net financing activity with Automotive - 3 - 174
Other 1 43 6 190
------- -------- ------- --------
Net cash (used in)/provided by financing activities (534) 2,744 (226) 6,207
Effect of exchange rate changes on cash (28) (48) 178 163
Net transactions with Automotive/Financial Services 66 (66) 317 (317)
------- -------- ------- --------
Net increase/(decrease) in cash and cash equivalents 324 (624) 5,452 56
------- -------- ------- --------
Cash and cash equivalents at March 31 $ 6,074 $ 2,066 $ 9,933 $ 1,795
======= ======== ======= ========
</TABLE>
The accompanying notes are part of the financial statements.
FS-5
<PAGE>
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(unaudited)
1. Financial Statements - The financial data presented herein are
unaudited, but in the opinion of management reflect those
adjustments necessary for a fair presentation of such
information. Results for interim periods should not be
considered indicative of results for a full year. Reference
should be made to the financial statements contained in the
registrant's Annual Report on Form 10-K (the "10-K Report") for
the year ended December 31, 1995. For purposes hereof, "Ford" or
the "Company" means Ford Motor Company and its majority owned
subsidiaries unless the context requires otherwise. Certain
amounts for prior periods have been reclassified.
2. Selected Automotive costs and expenses are summarized as follows
(in millions):
<TABLE>
<CAPTION>
First Quarter
---------------------------
1996 1995
----------- ---------
<S> <C> <C>
Depreciation $636 $589
Amortization 764 712
</TABLE>
3. Automotive inventories are summarized as follows (in millions):
----------------------
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
------------ ------------
<S> <C> <C>
Raw materials, work in process and supplies $3,564 $3,717
Finished products 3,618 3,445
------ ------
Total inventories $7,182 $7,162
====== ======
U.S. inventories $2,902 $2,662
</TABLE>
FS-6
<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 an indirect wholly owned subsidiary of Ford
Motor Company.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 967
<SECURITIES> 2,685
<RECEIVABLES> 61,902
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 96,401
<CURRENT-LIABILITIES> 0
<BONDS> 79,769
0
0
<COMMON> 25
<OTHER-SE> 7,781
<TOTAL-LIABILITY-AND-EQUITY> 96,401
<SALES> 0
<TOTAL-REVENUES> 3,404
<CGS> 0
<TOTAL-COSTS> 3,023
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 184
<INTEREST-EXPENSE> 1,270
<INCOME-PRETAX> 430
<INCOME-TAX> 132
<INCOME-CONTINUING> 293
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 293
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
