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) January 29, 1997
----------------
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.
The news release dated January 29, 1997 of Ford Motor Credit Company and
subsidiaries for the year ended December 31, 1996 is filed as Exhibit 99.1
to this Current Report on Form 8-K and is incorporated by reference herein.
The news release dated January 29, 1997 of Ford Motor Company and
subsidiaries for the year ended December 31, 1996 is filed as Exhibit 99.2 to
this Current Report on Form 8-K and is incorporated by reference herein.
ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits.
EXHIBITS
Designation Description Method of Filing
- ----------- ----------- ----------------
Exhibit 99.1 News release dated Filed with this Report.
January 29, 1997 of
Ford Motor Credit Company
and Subsidiaries for the
year ended December 31,
1996 with attachments.
Exhibit 99.2 News release dated Filed with this Report.
January 29, 1997 of
Ford Motor Company and
Subsidiaries for the year
ended December 31, 1996
with attachments.
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: January 30, 1997 By:/s/R. P. Conrad
-----------------
R. P. Conrad
Assistant Secretary
<PAGE>
<PAGE 3>
EXHIBIT INDEX
Designation Description
- ----------- -----------
Exhibit 99.1 News release dated
January 29, 1997 of
Ford Motor Credit Company
and Subsidiaries for the
year ended December 31,
1996 with attachments.
Exhibit 99.2 News release dated
January 29, 1997 of
Ford Motor Company and
Subsidiaries for the year
ended December 31, 1996
with attachments.
EXHIBIT 99.1
FORD CREDIT NEWS
Contact: Della DiPietro Susan Miller
313/594-1096
IMMEDIATE RELEASE
FORD CREDIT REPORTS 1996 EARNINGS
DEARBORN, Mich., Jan. 29, 1997 -- Ford Motor Credit Company's net income for
1996 was $1.441 billion, Chairman William E. Odom and President Edsel B. Ford
II announced today. Earnings were $138 million lower than 1995's net income
of $1.579 billion.
Compared with 1995, the reduction in earnings reflected primarily the
first-quarter 1996 restructuring of Ford's Financial Services Group and a
higher full-year 1996 effective tax rate. Higher credit losses were offset
by higher levels of earning assets and higher net interest margins. At
year-end 1996, Ford Credit's total net finance receivables and net investment
in operating leases were $111.5 billion compared with $102.1 billion a year
earlier, a 9 percent increase.
Ford Credit's 1996 financial results included a majority ownership (78%) of
Ford Credit Europe and results for 1995 have been restated to reflect this
ownership change. Ford Credit is an indirect wholly owned subsidiary of Ford
Motor Company and is part of Ford's Financial Services Group.
- --------
Ford Credit Public Affairs, The American Road, P. O. Box 1732, MD-7380,
Dearborn, Michigan 48121
Telephone: 313/594-1096; Fax: 313/390-2453
Internet: http://media.ford.com
<PAGE>
-2-
Consolidated financial statements exclude certain vehicle finance
subsidiaries of Ford Motor Company that are managed by Ford Credit. Ford
Credit's worldwide managed perations earned $1.353 billion in 1996.
Worldwide managed net receivables and net investment in operating leases were
$126.1 billion at year-end 1996. Included in these managed receivables are
certain finance receivables Ford Credit has sold and continues to service.
As the world's largest and most profitable automotive finance company,
Ford Credit provides vehicle financing for more than 11,400 automotive
dealers and more than 8 million retail customers in 33 countries.
# # #
1/29/97
<PAGE>
Ford Motor Credit Company and Consolidated Subsidiaries
Operating Highlights
1996 1995
-------- --------
(Unaudited)
Income (in Millions)
Income Before Income Taxes $2,240.2 $2,327.8
Net Income 1,440.6 1,579.4
Market Share
Ford Retail United States 37.8% 36.9%
Europe 29.1 30.2
Ford Wholesale
United States 79.5% 79.7%
Europe 90.8 89.2
Contract Volume - New and Used Retail/Lease (in Thousands)
United States 2,674 2,499
Europe 716 723
Other International 371 253
----- -----
Total Contract Volume 3,761 3,475
===== =====
Assets (in Millions)
Net Finance Receivables $80,848.0 $76,376.7
Net Investment in Operating Leases 30,645.2 25,680.2
---------- ----------
Subtotal $111,493.2 $102,056.9
Other Assets 10,532.9 9,571.3
---------- ----------
Total Assets $122,026.1 $111,628.2
========== ==========
Liabilities and Stockholder's Equity (in Millions)
Liabilities
Debt - Payable Within One Year $52,195.0 $49,535.7
Debt - Payable After One Year 45,829.3 42,644.6
--------- ---------
Total Debt $98,024.3 $92,180.3
--------- ---------
Other Liabilities 12,868.1 9,133.5
Total Liabilities $110,892.4 $101,313.8
---------- ----------
Minority Interests in Net Assets
of Subsidiaries 1,416.7 1,100.6
Stockholder's Equity 9,717.0 9,213.8
---------- ----------
Total Liabilities and Stockholder's Equity $122,026.1 $111,628.2
========== ==========
<PAGE>
Memo: Selected Worldwide Results for Managed Operations *
1996 1995
---- ----
Income (in Millions)
Income Before Income Taxes $2,125.2 $2,200.0
Net Income 1,353.4 1,402.3
Contract Volume
New and Used Retail/Lease (in Thousands) 3,897 3,520
Managed Net Finance Receivables and Net
Investment in Operating Leases (in Millions)** $126,050.3 $113,099.1
* Managed Operations exclude Ford Credit's equity interest in the
non-automotive financing results of Ford Holdings, Inc.
** Managed Receivables include certain finance receivables Ford Credit
has sold and continues to service.
EXHIBIT 99.2
FORD NEWS
Contact: Media Inquiries Stockholder Inquiries
Christian Vinyard (800) 555-5259 or
(313) 322-3428 (313) 845-8540
RELEASE AT 7:30 A.M. (EASTERN) JAN. 29, 1997
FORD EARNS $4.4 BILLION IN 1996, UP 7%;
FOURTH QUARTER RISES 82% TO $1.2 BILLION
DEARBORN, Mich., Jan. 29, 1997 -- Ford Motor Company today reported 1996
earnings of $4.4 billion or $3.64 per fully diluted share of common and Class B
stock. These results were 7 percent better than 1995's earnings of $4.1 billion
or $3.33 a share.
"This was a year of important progress but continuing challenges," said
Chairman and Chief Executive Officer Alex Trotman.
"We have successfully completed our highest-volume launches in North
America and Europe," Trotman said. "Our global product development organization
was streamlined from five to three Vehicle Centers. Important new products like
Expedition, Ka, and Jaguar XK8 have received strong customer reception.
Non-strategic businesses were sold, Financial Services set another earnings
record, our balance sheet strengthened further, and we ended the year with a
solid fourth quarter."
In the fourth quarter, Ford's earnings rose 82 percent to $1.2 billion or
99 cents a share. The results include a one-time charge for voluntary separation
programs and a partial reversal of a provision for losses on loans to Budget
Rent a Car. Excluding these one-time factors, Ford's fourth-quarter earnings
were $1.3 billion or $1.10 a share, more than double year-ago results.
Fourth-quarter automotive earnings, excluding one-time factors, were $770
million in the U.S., $39 million in Europe, and improved in every major region
compared with a year ago.
_______________________________________________________________________________
Investor and Financial Media Relations, World Headquarters, Dearborn, Michigan
48126 Telephone: (313) 322-9600; Fax: (313) 845-0570 Internet:
http://media.ford.com
<PAGE>
-2-
AUTOMOTIVE OPERATIONS
Ford's full-year net income from worldwide automotive operations was $1.6
billion, down from $2 billion earned in 1995. The 1996 results reflect a
one-time charge of $436 million for the cost of voluntary employee separation
programs.
"Our U.S. operations, which contribute about 65 percent of our automotive
revenues, have been on an improving trend for the last three quarters," Trotman
said, "and we're addressing challenges in Europe and South America."
In the U.S., Ford earned $2 billion in 1996, up from $1.8 billion earned in
1995. Outside the U.S., Ford lost $352 million, compared with earnings of $213
million in 1995. Ford's European automotive operations lost $291 million in
1996, compared with a profit of $116 million in 1995. In South America, Ford
lost $642 million, compared with a loss of $94 million in 1995.
"We've strengthened our truck line-up in the U.S. while the market
continued to shift from cars to trucks," Trotman noted.
About 55 percent of Ford's U.S. automotive sales in 1996 were trucks. With
sales of more than 780,000, F-Series was the best-selling vehicle in America for
the 15th year in a row. Explorer sales were more than 402,000, the new
Mountaineer added 26,700, and the all-new Expedition, introduced in October,
already is the best seller in its segment despite constrained manufacturing
capacity. Taurus retained its position as best-selling car in America for the
fifth straight year.
Three of America's top four vehicles in 1996 were built by Ford, as were
five of the top 10. These sales successes were accomplished with no increase in
total marketing costs as a percentage of revenue.
Outside the U.S., Trotman said that Ford faces a highly competitive market
in Europe, while launching a virtually new automotive company in South America.
"Europe is tough for everyone," Trotman said, "but we expect better results
in 1997." The European markets have seen a shift to low-end cars and
increasingly high incentives from most manufacturers.
<PAGE>
-3-
In 1996, Ford strengthened the product line-up with a new Fiesta, a new
small car -- the Ka -- and an updated Mondeo. Aggressive cost reductions are
under way, including vehicle cost reductions and the rationalization of
manufacturing capacity.
The challenges Ford faces in South America stem from the dissolution of
Autolatina in 1995. Ford is in the process, in effect, of launching a new
company in Brazil and Argentina. Autolatina was a joint-venture company formed
in 1987 with Volkswagen and was dissolved by mutual agreement.
"We have the right plans in Brazil and Argentina to restore our strength
and profitability, although we know it will take some time as we introduce new
products, build a new organization, and restore the dealer body," Trotman said.
"The new products are generating sales momentum. Overall, we are on track."
FINANCIAL SERVICES
The Financial Services Group earned a record $2.8 billion in 1996 compared
with $2.1 billion in 1995. Earnings in 1996 include a net one-time gain of $512
million, reflecting a gain of $650 million from the initial public offering of
19.3 percent of The Associates common stock, a gain of $95 million from the sale
of essentially all the assets of USL Capital and a net charge of $233 million
from the write-down for Budget Rent a Car. Without the one-time actions,
Financial Services still set a record for the year.
Ford Credit earned $1.4 billion in 1996, down $138 million from 1995. The
lower results reflect increased credit losses, consistent with industry trends.
On Jan. 28, The Associates reported its 22nd year of increased earnings with
record profits of $857 million in 1996, up 19 percent. As the majority
shareholder, Ford's share was $745 million.
FOURTH-QUARTER RESULTS
Fourth-quarter earnings of $1.2 billion or 99 cents per fully diluted share
of common and Class B stock compare with $660 million or 48 cents a share in the
fourth quarter of 1995. A fourth-quarter charge of $336 million for voluntary
separation costs is offset by a partial reversal of a second-quarter provision
for losses on loans to Budget Rent a Car ($204 million).
<PAGE>
-4-
U.S. automotive operations continued to improve, with earnings of $628
million for the fourth quarter, compared with $168 million for the same period
last year. Outside the U.S., automotive operations lost $238 million, compared
with a loss of $152 million for the same period last year, reflecting higher
losses in Europe and South America.
For the Financial Services Group, fourth-quarter earnings were $814
million, compared with $644 million in the same period a year ago. The 1996
results include a favorable $204 million adjustment for Budget Rent a Car.
Ford Credit earned $385 million, compared with $455 million last year. The
Associates' earnings grew 20 percent to a record $234 million, compared to $195
million earned in the fourth quarter last year. Ford's fourth-quarter share was
$190 million.
LOOKING AHEAD
"We're starting 1997 in a much stronger competitive position," Trotman
noted. "We have a tough business plan in place. We expect automotive earnings to
improve in 1997, driven by a strong product line-up and company-wide efforts to
lower costs."
"Our agenda is straightforward," Trotman said. "The first priority is to
improve near-term automotive results."
"Second," Trotman continued, "we want to continue to grow the earnings of
our Financial Services Group. It's clearly one of our undervalued strengths."
"We have a great deal of energy devoted to meeting our near-term
objectives," Trotman said. "Everything we do is designed to maximize the quality
and value of our products for our customers and, over time, create value for our
shareholders."
# # #
<PAGE>
-5-
SUMMARY OF 1996 COMPARED WITH 1995
Overview
- --------
Total earnings were $4.4 billion, up 7 percent from earnings of $4.1 billion in
1995.
Fully diluted earnings per share were $3.64, compared with $3.33 a share.
Worldwide sales and revenues were $147 billion, compared with $137.1 billion.
Stockholders' equity at year-end was $26.8 billion, compared with $24.5 billion.
Automotive
- ----------
Net income from worldwide automotive operations was $1.6 billion, compared with
$2 billion in 1995.
Net income from U.S. automotive operations was $2 billion, compared with $1.8
billion. A record 2.1 million trucks were sold in the U.S. in 1996, surpassing
1995's peak by nearly 85,000. Ford Division sold nearly 3.3 million vehicles in
1996 for its best sales year in history.
Automotive operations outside the U.S. lost $352 million, compared with a profit
of $213 million.
Worldwide vehicle unit sales were 6,653,000 in 1996, about equal to 1995's unit
sales of 6,606,000. Revenues in 1996 were $118 billion, up 7 percent from 1995's
revenues of $110.5 billion.
Combined full-year car and truck share in the U.S. was 25.2 percent, compared
with 25.6 percent. In the fourth quarter, U.S. market share was 26.2 percent,
compared with 24.9 percent in 1995.
Combined car and truck share in Europe was 11.8 percent, compared with 12.2
percent.
Financial Services Group
- ------------------------
The Financial Services Group earned a record $2.8 billion, compared with $2.1
billion in 1995.
Ford Credit earned $1.441 billion, compared with $1.579 billion.
The Associates earned a record $857 million, compared with $723 million in 1995.
Hertz earned a record $159 million in 1996, up 51 percent over 1995.
Automotive Balance Sheet
- ------------------------
Cash and marketable securities was a record $15.4 billion, compared with $12.4
billion.
Debt was $8.2 billion, compared with $7.3 billion.
Net cash was a record $7.2 billion, compared with $5.1 billion.
Capital spending was $8.2 billion or 7 percent of revenue, compared with $8.7
billion or 7.9 percent of revenue.
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
HIGHLIGHTS
----------
Fourth Quarter Full Year
------------------------- --------------------------
1996 1995 1996 1995
------- ------- ------- -------
(Unaudited)
<S> <C> <C> <C> <C>
Worldwide vehicle unit sales of
cars and trucks (in thousands)
(Unaudited)
- - United States 1,006 955 3,897 3,993
- - Outside United States 747 635 2,756 2,613
----- ----- ----- -----
Total 1,753 1,590 6,653 6,606
===== ===== ===== =====
Sales and revenues (in millions)
- - Automotive $31,505 $27,597 $118,023 $110,496
- - Financial Services 7,328 6,950 28,968 26,641
------- ------- -------- --------
Total $38,833 $34,547 $146,991 $137,137
======= ======= ======== ========
Net income (in millions)*
- - Automotive $ 390 $ 16 $ 1,655 $ 2,056
- - Financial Services 814 644 2,791 2,083
------- ------- -------- --------
Total $ 1,204 $ 660 $ 4,446 $ 4,139
======= ======= ======== ========
Capital expenditures (in millions)
- - Automotive $ 2,413 $ 2,472 $ 8,209 $ 8,676
- - Financial Services 93 98 442 321
------- ------- -------- --------
Total $ 2,506 $ 2,570 $ 8,651 $ 8,997
======= ======= ======== ========
Automotive capital expenditures
as a percentage of sales 7.7% 9.0% 7.0% 7.9%
Stockholders' equity at December 31
- - Total (in millions) $26,762 $24,547 $ 26,762 $ 24,547
- - After-tax return on Common and
Class B stockholders' equity 18.4% 10.9% 17.6% 18.2%
Automotive cash and marketable securities
at December 31 (in millions) $15,414 $12,406 $ 15,414 $ 12,406
Automotive debt at December 31
(in millions) $ 8,156 $ 7,307 $ 8,156 $ 7,307
After-tax return on sales
- - U.S. Automotive 3.2% 0.9% 2.7% 2.5%
- - Total Automotive 1.3 0.1 1.4 1.9
Shares of Common and Class B Stock
(in millions)
- - Average number outstanding 1,187 1,136 1,179 1,071
- - Number outstanding at December 31 1,188 1,159 1,188 1,159
AMOUNTS PER SHARE OF COMMON AND
CLASS B STOCK AFTER PREFERRED
STOCK DIVIDENDS
Income/(loss) assuming full dilution
- - Automotive $ 0.32 $ (0.06) $ 1.33 $ 1.59
- - Financial Services 0.67 0.54 2.31 1.74
------- ------- -------- --------
Total $ 0.99 $ 0.48 $ 3.64 $ 3.33
======= ======= ======== ========
Cash dividends $ 0.385 $ 0.35 $ 1.47 $ 1.23
- - - - - -
*One-time factors included in net income
(in millions):
Automotive
- Employee separation programs $ (336) $ (129) $ (436) $ (146)
- Autolatina dissolution - 230 - 230
Financial Services
- Sale of The Associates' common stock - - 650 -
- Sale of USL Capital's assets - - 95 -
- Net write-down for Budget Rent a Car
Corporation 204 - (233) -
------- ------- -------- --------
Total $ (132) $ 101 $ 76 $ 84
======= ======= ======== ========
</TABLE>
FS-1
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
VEHICLE UNIT SALES
------------------
For the Periods Ended December 31, 1996 and 1995
(in thousands)
Fourth Quarter Full Year
-------------------------- ---------------------------
1996 1995 1996 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
(Unaudited) (Unaudited)
NORTH AMERICA
United States
Cars 428 434 1,656 1,767
Trucks 578 521 2,241 2,226
----- ----- ----- -----
Total United States 1,006 955 3,897 3,993
Canada 84 76 258 254
Mexico 28 11 67 32
----- ----- ----- -----
Total North America 1,118 1,042 4,222 4,279
EUROPE
Britain 140 125 516 496
Germany 106 84 436 409
France 47 41 194 165
Italy 51 54 180 193
Spain 41 31 155 160
Other countries 103 74 339 286
----- ----- ----- -----
Total Europe 488 409 1,820 1,709
OTHER INTERNATIONAL
Brazil 48 48 190 201
Australia 31 32 138 139
Taiwan 14 16 86 106
Argentina 21 14 64 48
Japan 11 13 52 57
Other countries 22 16 81 67
----- ----- ----- -----
Total other international 147 139 611 618
----- ----- ----- -----
Total worldwide vehicle unit sales 1,753 1,590 6,653 6,606
===== ===== ===== =====
</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 Years Ended December 31, 1996, 1995 and 1994
(in millions, except amounts per share)
1996 1995 1994
-------- -------- --------
<S> <C> <C> <C>
AUTOMOTIVE
Sales $118,023 $110,496 $107,137
Costs and expenses:
Costs of sales 108,882 101,171 95,887
Selling, administrative and other expenses 6,625 6,044 5,424
-------- -------- --------
Total costs and expenses 115,507 107,215 101,311
Operating income 2,516 3,281 5,826
Interest income 841 800 665
Interest expense 695 622 721
-------- -------- --------
Net interest income/(expense) 146 178 (56)
Equity in net (loss)/income of affiliated companies (6) (154) 271
Net expense from transactions with Financial Services (85) (139) (44)
-------- -------- --------
Income before income taxes - Automotive 2,571 3,166 5,997
FINANCIAL SERVICES
Revenues 28,968 26,641 21,302
Costs and expenses:
Interest expense 9,704 9,424 7,023
Depreciation 6,875 6,500 4,910
Operating and other expenses 6,217 5,499 4,607
Provision for credit and insurance losses 2,564 1,818 1,539
Asset write-downs and dispositions 121 - 475
-------- -------- --------
Total costs and expenses 25,481 23,241 18,554
Net revenue from transactions with Automotive 85 139 44
Gain on sale of The Associates' common stock 650 - -
-------- -------- --------
Income before income taxes - Financial Services 4,222 3,539 2,792
-------- -------- --------
TOTAL COMPANY
Income before income taxes 6,793 6,705 8,789
Provision for income taxes 2,166 2,379 3,329
-------- -------- --------
Income before minority interests 4,627 4,326 5,460
Minority interests in net income of subsidiaries 181 187 152
-------- -------- --------
Net income $ 4,446 $ 4,139 $ 5,308
======== ======== ========
Income attributable to Common and Class B Stock
after preferred stock dividends $ 4,381 $ 3,839 $ 5,021
Average number of shares of Common and Class B Stock outstanding 1,179 1,071 1,010
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
Income $ 3.72 $ 3.58 $ 4.97
Income assuming full dilution $ 3.64 $ 3.33 $ 4.44
Cash dividends $ 1.47 $ 1.23 $ 0.91
</TABLE>
FS-3
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
--------------------------
(in millions)
December 31, December 31,
1996 1995
--------------- ---------------
<S> <C> <C>
ASSETS
Automotive:
Cash and cash equivalents $ 3,578 $ 5,750
Marketable securities 11,836 6,656
-------- --------
Total cash and marketable securities 15,414 12,406
Receivables 3,635 3,321
Inventories 6,656 7,162
Deferred income taxes 3,296 2,709
Other current assets 3,193 1,483
Net current receivable from Financial Services 0 200
-------- --------
Total current assets 32,194 27,281
Equity in net assets of affiliated companies 2,483 2,248
Net property 33,527 31,273
Deferred income taxes 4,429 4,802
Other assets 7,025 7,168
-------- --------
Total Automotive assets 79,658 72,772
Financial Services:
Cash and cash equivalents 3,689 2,690
Investments in securities 2,307 4,553
Net receivables and lease investments 161,906 149,694
Other assets 14,834 13,574
Net receivable from Automotive 473 0
-------- --------
Total Financial Services assets 183,209 170,511
-------- --------
Total assets $262,867 $243,283
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive:
Trade payables $ 11,735 $ 11,260
Other payables 2,206 1,976
Accrued liabilities 16,587 13,392
Income taxes payable 508 316
Debt payable within one year 1,661 1,832
Net current payable to Financial Services 473 0
-------- --------
Total current liabilities 33,170 28,776
Long-term debt 6,495 5,475
Other liabilities 26,793 25,677
Deferred income taxes 1,225 1,186
-------- --------
Total Automotive liabilities 67,683 61,114
Financial Services:
Payables 4,695 5,476
Debt 150,205 141,317
Deferred income taxes 4,338 3,831
Other liabilities and deferred income 8,504 6,116
Net payable to Automotive 0 200
-------- --------
Total Financial Services liabilities 167,742 156,940
Company-obligated mandatorily redeemable preferred securities of
a subsidiary trust holding solely junior subordinated debentures
of the Company 680 682
Stockholders' equity:
Capital stock
Preferred Stock, par value $1.00 per share (aggregate
liquidation preference of $694 million and $1,042 million) * *
Common Stock, par value $1.00 per share
(1,118 million and 1,089 million shares issued) 1,118 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 5,268 5,105
Foreign currency translation adjustments and other (29) 594
Earnings retained for use in business 20,334 17,688
-------- --------
Total stockholders' equity 26,762 24,547
-------- --------
Total liabilities and stockholders' equity $262,867 $243,283
======== ========
- - - - - -
*Less than $500,000
</TABLE>
FS-4
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONSOLIDATED STATEMENT OF CASH FLOWS
------------------------------------
For the Years Ended December 31, 1996, 1995 and 1994
(in millions)
1996 1995 1994
----------------------- ---------------------- ----------------------
Financial Financial Financial
Automotive Services Automotive Services Automotive Services
---------- --------- ---------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Cash and cash equivalents at January 1 $ 5,750 $ 2,690 $ 4,481 $ 1,739 $ 5,667 $ 2,555
Cash flows from operating activities 6,576 12,776 8,849 12,322 7,542 9,087
Cash flows from investing activities
Capital expenditures (8,209) (442) (8,676) (321) (8,310) (236)
Purchase of leased assets (195) - 0 - 0 -
Acquisitions of other companies 0 (166) 0 0 0 (485)
Acquisitions of receivables and lease
investments - (108,713) - (99,967) - (90,824)
Collections of receivables and
lease investments - 82,024 - 71,149 - 61,111
Net acquisitions of daily rental vehicles - (1,759) - (1,459) - (924)
Net proceeds from USL Capital asset
sales - 1,157 - - - -
Purchases of securities (6) (8,020) (51) (6,274) (412) (10,688)
Sales and maturities of securities 7 9,863 325 5,052 511 9,649
Proceeds from sales of receivables and
lease investments - 2,867 - 4,360 - 3,622
Net investing activity with Financial Services 416 - (19) - 355 -
Other (586) (45) 558 (184) (331) 196
-------- --------- -------- -------- ------- --------
Net cash used in investing activities (8,573) (23,234) (7,863) (27,644) (8,187) (28,579)
Cash flows from financing activities
Cash dividends (1,800) - (1,559) - (1,205) -
Issuance of Common Stock 192 - 601 - 715 -
Issuance of Common Stock of a
subsidiary - 1,897 - - - -
Changes in short-term debt 151 3,224 413 5,884 (795) 10,314
Proceeds from other debt 1,688 22,247 300 23,854 158 21,885
Principal payments on other debt (1,031) (14,428) (177) (11,489) (75) (14,088)
Net financing activity with Automotive - (416) - 19 - (355)
Receipts from annuity contracts - - - 283 - 1,124
Net (redemption)/issuance of subsidiary
company preferred stock - - - (1,875) - 417
Other 37 (278) 121 102 31 (554)
------- --------- ------- -------- ------- --------
Net cash (used in)/provided by financing
activities (763) 12,246 (301) 16,778 (1,171) 18,743
Effect of exchange rate changes on cash (85) (116) 107 (28) 397 166
Net transactions with Automotive/
Financial Services 673 (673) 477 (477) 233 (233)
------- --------- ------- -------- ------- --------
Net (decrease)/increase in cash and
cash equivalents (2,172) 999 1,269 951 (1,186) (816)
------- --------- ------- -------- ------- --------
Cash and cash equivalents at December 31 $ 3,578 $ 3,689 $ 5,750 $ 2,690 $ 4,481 $ 1,739
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</TABLE>
FS-5
