EXHIBIT 99.2
NEWS
Contact:
Media:
------
Todd Nissen
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Securities Analysts:
--------------------
Mike Holland
313.323.8221
[email protected]
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----------------------
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IMMEDIATE RELEASE
FORD REPORTS RECORD REVENUES,
UNIT SALES, OPERATING
EARNINGS PER SHARE IN 2000
DEARBORN, Mich., Jan. 18, 2001 - Ford Motor Company [NYSE: F] earned $5.4
billion from continuing operations in 2000 on record revenues and volume as it
made significant progress moving toward a consumer-focused organization.
Excluding unusual items, 2000 operating earnings were $6.7 billion, or a record
$3.26 per fully diluted share, up 4 percent from 1999 on a comparable basis.
Revenues for 2000 were a record at $170 billion, up 6 percent. Vehicle unit
sales rose 3 percent to a record 7.4 million. Full-year results for both periods
exclude Visteon Corp. [NYSE: VC], spun off June 28.
"Customers are the foundation of our strategy," said Jacques Nasser, president
and CEO. "At the beginning of the year we reorganized the company around
consumer business groups. We launched consumer-driven 6-Sigma and adopted new
E-commerce initiatives across the organization that together have transformed
how we do business on a day-to-day basis."
Ford Credit and The Hertz Corporation [NYSE: HRZ] both had excellent results.
Ford Credit's earnings were up 22 percent to $1.54 billion. Hertz had record
income of $358 million, its ninth consecutive year of increased earnings.
<PAGE>
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FOURTH QUARTER
Fourth quarter 2000 results were below a year ago, primarily because of weaker
vehicle industry conditions in the United States. Earnings from continuing
operations (excluding Visteon) were $1.1 billion or 57 cents per fully diluted
share of common and Class B stock. Quarterly results include a one-time charge
of $133 million, or 7 cents a share, for the write-down of assets associated
with the Nemak joint venture on castings. A year ago, earnings from continuing
operations were $1.7 billion or $1.39 per diluted share.
Fourth quarter 2000 operating earnings (excluding Visteon and one-time items)
were $1.2 billion, or 64 cents per fully diluted share of common and Class B
stock. Operating earnings for the 1999 fourth quarter, were $1.8 billion or 83
cents per diluted share, adjusted for the Value Enhancement Plan.
Highlights from 2000 included:
o Shareholder value: Ford returned $5.7 billion in cash to shareholders
through the Value Enhancement Plan, spun off Visteon and purchased $1
billion of stock under our $5 billion stock repurchase plan.
o Products and brands: Volvo was successfully integrated, the acquisition of
Land Rover was completed and several new products were introduced, such as
the Escape sport utility vehicle, Explorer Sport Trac, Volvo S60 and Mondeo
and Transit in Europe; Ford Focus was the world's best-selling car, and
Ford F-Series the top-selling truck.
o Transformation: Internet and E-business initiatives were implemented,
including an employee personal computer program, alliances with Yahoo and
Trilogy Software, and the Wingcast telematics joint venture with Qualcomm
Inc.
AUTOMOTIVE OPERATIONS
Ford Motor Company earned $3.62 billion from continuing automotive operations in
2000 on revenues of $141 billion. That compares to $4.99 billion on revenues of
$135 billion a year ago.
<PAGE>
-3-
Worldwide factory unit sales for the year were 7.4 million units, topping the
previous record of 7.2 million set in 1999. Total costs were down $500 million
at constant volume and mix. Cost improvements were below the $1 billion goal,
primarily reflecting the Firestone tire recall and the 3.8 liter engine warranty
extension. Automotive gross cash at year-end was $16.5 billion.
Income from continuing operations in the fourth quarter was $629 million, down
from $1.35 billion a year ago. Revenue from automotive operations was $35.1
billion, versus $37.3 billion. Worldwide vehicle unit sales in the fourth
quarter were 1.8 million units, down from 1.9 million a year ago.
North America: Full-year 2000 earnings were $4.89 billion on revenues of $103.9
billion, down from $5.42 billion on revenues of $99.2 billion in 1999.
Fourth-quarter 2000 earnings were $607 million on revenues of $25.6 billion.
That compares to $1.47 billion on revenues of $27.1 billion. The reduction
primarily reflects lower industry sales and market share, and higher marketing
costs.
"We've got the strongest product lineup we've ever had and look for another
solid year in North America," said Nasser. "We have already taken aggressive
action to adjust our first quarter production schedules to meet softening market
demand. We'll continue to closely monitor economic conditions, and will not
hesitate to take further actions if warranted."
Europe: Full-year 2000 loss were $1.13 billion on revenues of $28.7 billion
after several one-time items, including a $1 billion charge for asset
impairments and restructuring. On an operating basis, Europe had a loss of $35
million. A year ago, Europe had a profit of $50 million, or $10 million on an
operating basis, on revenues of $29.3 billion.
Fourth-quarter results were a profit of $33 million on revenues of $7.3 billion
reflecting continued cost reductions. The 1999 fourth quarter was a loss of $30
million on revenues of $8.5 billion.
<PAGE>
-4-
South America: Full-year results improved to a loss of $240 million on revenues
of $2.5 billion. Last year, Ford lost $444 million on revenues of $2.3 billion.
Fourth-quarter losses were $31 million on revenues of $642 million. The
year-earlier period was a $100 million loss on revenues of $537 million. The
improvement over a year ago reflects continued cost reductions and better
revenue and product mix.
Asia-Pacific and other markets: Full-year profits were $108 million on sharply
higher revenues of $6.2 billion. That compares to a $38 million loss on revenues
of $4.2 billion.
Fourth-quarter 2000 results were a $20 million profit on revenues of $1.5
billion. That compares to a profit of $10 million on revenues of $1.1 billion.
"Our results outside North America, while improving, remained unacceptable in
2000. Our European operations are in the middle of a strategic restructuring and
we expect a solid return to profitability this year. Our South American
operations met their full-year 2000 milestone and will continue to improve this
year," Nasser said.
FORD CREDIT
Ford Credit earned $1.54 billion in 2000, up 22 percent from 1999. In the fourth
quarter, Ford Credit earned $410 million, an increase of $101 million, primarily
because of higher volume and an improved net financing margin, offset partially
by higher credit losses associated with the restructuring of North American
operations.
HERTZ
Hertz reported full-year 2000 earnings of $358 million, up from $336 million in
1999. It was the ninth consecutive year of improved earnings for Hertz. In the
fourth quarter Hertz earned $56 million, down $5 million from the year-earlier
period.
<PAGE>
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MILESTONES
For 2000, Ford reached its milestones for revenue growth, South America,
Asia-Pacific, capital spending, Ford Credit, Hertz and Visteon. Ford missed its
milestones for total shareholder returns, total cost reductions and North
America and Europe.
Ford last week set its financial milestones for 2001 and reaffirmed its
customer-focused strategy. Ford has a goal of growing total company revenues by
$5 billion from record levels in 2000. In North America, Ford has targeted a 4
percent-plus return on sales despite softening market conditions. In Europe, we
have a goal of improving results to a 1-percent plus return on sales. Ford also
has goals of improving results in South America and achieving profitability in
Asia-Pacific.
Total costs, assuming constant volume and mix, are targeted to be reduced by $1
billion, and capital spending will be contained at $8 billion or less. Ford
Credit has a milestone of improving returns and growing its earnings by 10
percent.
OUTLOOK
"We will face softening U.S. market conditions in 2001," Nasser said. "However,
our excellent portfolio of brands, customer focus and commitment to executing
our strategies set us apart from our competitors. We are focused on improving
our cost structure, bringing production in line with demand, generating positive
cash flow and delivering another year of strong financial results."
###
Statements included herein may constitute "forward looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. These
statements involve a number of risks, uncertainties, and other factors that
could cause actual results to differ materially from those stated, including,
without limitation: greater price competition in the U.S. and Europe resulting
from currency fluctuations, industry overcapacity or other factors; a
significant decline in industry sales, particularly in the U.S. or Europe,
resulting from slowing economic growth; currency or commodity price
fluctuations; economic difficulties in South America or Asia; higher fuel
prices; a market shift from truck sales in the U.S.; lower-than-anticipated
residual values for leased vehicles; labor or other constraints on our ability
to restructure our business; increased safety or emissions regulation resulting
in higher costs and/or sales restrictions; work stoppages at key Ford or
supplier facilities; and the discovery of defects in vehicles resulting in
recall campaigns, increased warranty costs or litigation.
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
HIGHLIGHTS
----------
Fourth Quarter Full Year
---------------------------- ---------------------------
2000 1999 2000 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Worldwide vehicle unit sales of
cars and trucks (in thousands)
- North America 1,209 1,280 4,933 4,787
- Outside North America 631 639 2,491 2,433
----- ----- ----- -----
Total 1,840 1,919 7,424 7,220
===== ===== ===== =====
Sales and revenues (in millions)
- Automotive $ 35,107 $ 37,285 $ 141,230 $ 135,073
- Financial Services 7,480 6,637 28,834 25,585
--------- --------- --------- ---------
Total $ 42,587 $ 43,922 $ 170,064 $ 160,658
========= ========= ========= =========
Net income (in millions)
- Automotive $ 629 $ 1,354 $ 3,624 $ 4,986
- Financial Services 448 357 1,786 1,516
--------- --------- --------- ---------
Income from continuing operations 1,077 1,711 5,410 6,502
- Discontinued operation (Visteon) - 95 309 735
- Loss on spin-off of Visteon - - (2,252) -
--------- --------- --------- ---------
Total $ 1,077 $ 1,806 $ 3,467 $ 7,237
========= ========= ========= =========
Capital expenditures (in millions)
- Automotive $ 2,510 $ 2,548 $ 7,393 $ 7,069
- Financial Services 390 155 955 590
--------- --------- --------- ---------
Total $ 2,900 $ 2,703 $ 8,348 $ 7,659
========= ========= ========= =========
Automotive capital expenditures as a
percentage of sales 8.2% 6.8% 5.2% 5.2%
Stockholders' equity at December 31
- Total (in millions) $ 18,610 $ 27,604 $ 18,610 $ 27,604
- Annualized after-tax return on Common
and Class B stockholders' equity 25.5% 26.6% 14.9% 28.2%
Automotive net cash at December 31
(in millions)
- Cash and marketable securities $ 16,490 $ 21,736 $ 16,490 $ 21,736
- Debt 12,046 11,736 12,046 11,736
--------- --------- --------- ---------
Automotive net cash $ 4,444 $ 10,000 $ 4,444 $ 10,000
========= ========= ========= =========
After-tax return on sales
- North American Automotive 2.4% 5.5% 4.8% 5.5%
- Total Automotive 1.8% 3.7% 2.6% 3.7%
Shares of Common and Class B Stock
(in millions)
- Average number outstanding 1,873 1,207 1,483 1,210
- Number outstanding at December 31 1,854 1,207 1,854 1,207
Common Stock price (per share)
(adjusted to reflect Visteon spin-off
and Value Enhancement Plan)
- High $ 27 $ 30-1/8 $ 30-1/8 $ 37-1/4
- Low 21-5/8 26-5/8 21-5/8 25-3/8
AMOUNTS PER SHARE OF COMMON AND CLASS B
STOCK AFTER PREFERRED STOCK DIVIDENDS
Income assuming dilution
- Automotive $ 0.33 $ 1.10 $ 2.40 $ 4.03
- Financial Services 0.24 0.29 1.19 1.23
--------- --------- --------- ---------
Subtotal 0.57 1.39 3.59 5.26
- Discontinued operation (Visteon) - 0.08 0.21 0.60
- Loss on spin-off of Visteon - - (1.50) -
--------- --------- --------- ---------
Total $ 0.57 $ 1.47 $ 2.30 $ 5.86
========= ========= ========= =========
Cash dividends (2000 adjusted for
Value Enhancement Plan) $ 0.30 $ 0.50 $ 1.16 $ 1.88
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
VEHICLE UNIT SALES
------------------
For the Periods Ended December 31, 2000 and 1999
(in thousands)
Fourth Quarter Full Year
------------------------ --------------------------
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
North America
United States
Cars 433 497 1,775 1,725
Trucks 643 646 2,711 2,660
----- ----- ----- -----
Total United States 1,076 1,143 4,486 4,385
Canada 83 100 300 288
Mexico 50 37 147 114
----- ----- ----- -----
Total North America 1,209 1,280 4,933 4,787
Europe
Britain 108 122 476 518
Germany 79 80 320 353
Italy 65 59 222 209
Spain 51 45 180 180
France 39 44 158 172
Sweden 42 40 132 94
Other countries 122 135 474 434
----- ----- ----- -----
Total Europe 506 525 1,962 1,960
Other international
Brazil 37 26 134 117
Australia 30 30 125 125
Taiwan 9 11 63 56
Argentina 10 16 49 60
Japan 4 8 26 32
Other countries 35 23 132 83
----- ----- ----- -----
Total other international 125 114 529 473
----- ----- ----- -----
Total worldwide vehicle unit sales 1,840 1,919 7,424 7,220
===== ===== ===== =====
</TABLE>
Vehicle unit sales generally are reported worldwide on a "where sold" basis and
include sales of all Ford-badged units, as well as units manufactured by Ford
and sold to other manufacturers.
Prior periods were restated to correct reported unit sales.
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
--------------------------------
For the Years Ended December 31, 2000, 1999 and 1998
(in millions, except amounts per share)
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
AUTOMOTIVE
Sales $141,230 $135,073 $118,017
Costs and expenses
Costs of sales 126,120 118,985 104,616
Selling, administrative and other expenses 9,884 8,874 7,834
-------- -------- --------
Total costs and expenses 136,004 127,859 112,450
Operating income 5,226 7,214 5,567
Interest income 1,488 1,418 1,325
Interest expense 1,383 1,347 795
-------- -------- --------
Net interest income 105 71 530
Equity in net income/(loss) of affiliated companies (70) 35 (64)
Net expense from transactions with
Financial Services 6 (45) (191)
-------- -------- --------
Income before income taxes - Automotive 5,267 7,275 5,842
FINANCIAL SERVICES
Revenues 28,834 25,585 25,333
Costs and expenses
Interest expense 9,519 7,679 8,036
Depreciation 9,408 9,254 8,589
Operating and other expenses 4,971 4,653 4,618
Provision for credit and insurance losses 1,963 1,465 1,798
-------- -------- -------
Total costs and expenses 25,861 23,051 23,041
Net revenue from transactions with Automotive (6) 45 191
Gain on spin-off of The Associates - - 15,955
-------- -------- -------
Income before income taxes - Financial Services 2,967 2,579 18,438
-------- -------- -------
TOTAL COMPANY
Income before income taxes 8,234 9,854 24,280
Provision for income taxes 2,705 3,248 2,760
-------- -------- -------
Income before minority interests 5,529 6,606 21,520
Minority interests in net income of subsidiaries 119 104 152
-------- -------- -------
Income from continuing operations 5,410 6,502 21,368
Income from discontinued operation 309 735 703
Loss on spin-off of discontinued operation (2,252) - -
-------- -------- --------
Net income $ 3,467 $ 7,237 $ 22,071
======== ======== ========
Income attributable to Common and Class B Stock
after Preferred Stock dividends $ 3,452 $ 7,222 $ 21,964
Average number of shares of Common and Class B
Stock outstanding 1,483 1,210 1,211
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
Basic income
Income from continuing operations $ 3.66 $ 5.38 $ 17.59
Net income 2.34 5.99 18.17
Diluted income
Income from continuing operations $ 3.59 $ 5.26 $ 17.19
Net income 2.30 5.86 17.76
Cash dividends (2000 adjusted for Value Enhancement Plan) $ 1.16 $ 1.88 $ 1.72
</TABLE>
Prior period costs of sales and selling, administrative and other expenses were
reclassified.
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
--------------------------
As of December 31, 2000 and 1999
(in millions)
2000 1999
--------------- ----------------
<S> <C> <C>
ASSETS
Automotive
Cash and cash equivalents $ 3,374 $ 2,793
Marketable securities 13,116 18,943
-------- --------
Total cash and marketable securities 16,490 21,736
Receivables 4,685 5,267
Inventories 7,514 5,684
Deferred income taxes 2,239 3,762
Other current assets 5,318 3,831
Current receivable from Financial Services 1,587 2,304
-------- --------
Total current assets 37,833 42,584
Equity in net assets of affiliated companies 2,949 2,539
Net property 37,508 36,528
Deferred income taxes 3,342 2,454
Net assets of discontinued operations - 1,566
Other assets 13,711 13,530
-------- --------
Total Automotive assets 95,343 99,201
Financial Services
Cash and cash equivalents 1,477 1,588
Investments in securities 817 733
Finance receivables 125,164 113,298
Net investment in operating leases 46,593 42,471
Other assets 12,390 11,123
Receivable from Automotive 2,637 1,835
-------- --------
Total Financial Services assets 189,078 171,048
-------- --------
Total assets $284,421 $270,249
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive
Trade payables $ 15,075 $ 14,292
Other payables 4,011 3,778
Accrued liabilities 23,515 18,488
Income taxes payable 449 1,709
Debt payable within one year 277 1,338
-------- --------
Total current liabilities 43,327 39,605
Long-term debt 11,769 10,398
Other liabilities 30,495 29,283
Deferred income taxes 353 1,223
Payable to Financial Services 2,637 1,835
-------- --------
Total Automotive liabilities 88,581 82,344
Financial Services
Payables 5,297 3,550
Debt 153,510 139,919
Deferred income taxes 8,677 7,078
Other liabilities and deferred income 7,486 6,775
Payable to Automotive 1,587 2,304
-------- --------
Total Financial Services liabilities 176,557 159,626
Company-obligated mandatorily redeemable preferred securities of a subsidiary
trust holding solely junior subordinated debentures of the Company 673 675
Stockholders' equity
Capital stock
Preferred Stock, par value $1.00 per share (aggregate liquidation preference
of $177 million) * *
Common Stock (par value $0.01 and $1.00 per share as of 2000 and 1999, 18 1,151
respectively; 1,837 and 1,151 million shares issued as of 2000 and 1999,
respectively)
Class B Stock, par value $0.01 and $1.00 per share as of 2000 and 1 71
1999, respectively (71 million shares issued)
Capital in excess of par value of stock 6,174 5,049
Accumulated other comprehensive loss (3,432) (1,856)
ESOP loan and treasury stock (2,035) (1,417)
Earnings retained for use in business 17,884 24,606
-------- --------
Total stockholders' equity 18,610 27,604
-------- --------
Total liabilities and stockholders' equity $284,421 $270,249
======== ========
- - - -
*Less than $1 million
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONSOLIDATED STATEMENT OF CASH FLOWS
------------------------------------
For the Years Ended December 31, 2000, 1999 and 1998
(in millions)
2000 1999 1998
---------------------------- ----------------------------- ---------------------------
Financial Financial Financial
Automotive Services Automotive Services Automotive Services
-------------- ------------- --------------- ------------- --------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Cash and cash equivalents at January 1 $ 2,793 $ 1,588 $ 3,143 $ 1,151 $ 5,972 $ 1,618
Cash flows from operating activities 18,307 15,457 14,851 12,540 8,249 13,478
Cash flows from investing activities
Capital expenditures (7,393) (955) (7,069) (590) (7,252) (504)
Purchase of leased assets - - - - (110) -
Acquisitions of other companies (2,662) (112) (5,763) (144) - (344)
Acquisitions of receivables and lease
investments - (96,512) - (80,422) - (78,863)
Collections of receivables and lease
investments - 54,290 - 46,646 - 49,303
Net acquisitions of daily rental vehicles - (2,107) - (1,739) - (1,790)
Purchases of securities (5,395) (564) (3,609) (900) (758) (2,102)
Sales and maturities of securities 4,938 542 2,352 1,100 590 2,271
Proceeds from sales of receivables and
lease investments - 19,439 - 9,931 - 8,413
Net investing activity with
Financial Services 645 - 1,329 - 642 -
Other - (305) (70) 119 (389) (463)
-------- -------- -------- -------- -------- --------
Net cash used in investing activities (9,867) (26,284) (12,830) (25,999) (7,277) (24,079)
Cash flows from financing activities
Cash dividends (2,751) - (2,290) - (5,348) -
Issuance of Common Stock 592 - 274 - 154 -
Purchase of Ford treasury stock (1,821) - (707) - (669) -
Preferred Stock - Series B repurchase,
Series A redemption - - - - (420) -
Changes in short-term debt (776) (6,406) (429) 5,547 463 7,475
Proceeds from issuance of other debt 2,363 37,086 3,143 37,184 2,307 21,776
Principal payments on other debt (1,277) (17,158) (821) (28,672) (1,285) (16,797)
Value Enhancement Plan payments (5,555) - - - - -
Net debt repayments from discontinued
operation 650 - - - - -
Net cash distribution (to)
discontinued operation (85) - - - - -
Net financing activity with Automotive - (645) - (1,329) - (642)
Spin-off of The Associates cash - - - - - (508)
Other 139 (585) (127) 88 (257) (12)
-------- -------- -------- -------- -------- --------
Net cash (used in)/provided by
financing activities (8,521) 12,292 (957) 12,818 (5,055) 11,292
Effect of exchange rate changes on cash (55) (859) (57) (279) (50) 146
Net transactions with Automotive/
Financial Services 717 (717) (1,357) 1,357 1,304 (1,304)
-------- -------- -------- -------- -------- --------
Net (decrease)/increase in cash and
cash equivalents 581 (111) (350) 437 (2,829) (467)
-------- -------- -------- -------- ------- --------
Cash and cash equivalents at December 31 $ 3,374 $ 1,477 $ 2,793 $ 1,588 $ 3,143 $ 1,151
======== ======== ======== ======== ======= ========
</TABLE>
