-------------------------------- Excludes Visteon & One-Time Factors -------------------------------- Ford Motor Company AUTOMOTIVE GEOGRAPHIC AND COST OF SALES DETAIL 2000 Compared With 1999 -------------------------------- GEOGRAPHIC DATA 4th Quarter Full Year -------------------------------- ------------------------------------------- ------------------------------------------- 00 B/(W) 00 B/(W) 2000 1999 Than 99 2000 1999 Than 99 ------------- ------------- -------------- ------------- ---------------- ------------ PBT (Mils.) U.S. $831 $2,127 ($1,296) $6,890 $7,593 ($703) Canada/Mexico 272 233 39 667 832 (165) ------------- ------------- -------------- ------------- ------------------- --------- North America $1,103 $2,360 ($1,257) $7,557 $8,425 ($868) Europe 31 (96) 127 (97) (160) 63 South America (49) (150) 101 (373) (683) 310 Rest of World 15 (10) 25 115 91 24 ------------- ------------- -------------- ------------- ------------------ ---------- Worldwide $1,100 $2,104 ($1,004) $7,202 $7,673 ($471) ============= ============= ============== ============= ================== ========== Net Income (Mils.) U.S. $564 $1,406 ($842) $4,602 $5,064 ($462) Canada/Mexico 176 148 28 430 531 (101) ------------- ------------- -------------- ------------- ------------------- --------- North America $740 $1,554 ($814) $5,032 $5,595 ($563) Europe 33 (30) 63 (35) 10 (45) South America (31) (100) 69 (240) (444) 204 Rest of World 20 10 10 125 90 35 ------------- ------------- -------------- ------------- ------------------ ---------- Worldwide $762 $1,434 ($672) $4,882 $5,251 ($369) ============= ============= ============== ============= ================== ========== Sales (Mils.) U.S. $23,302 $24,637 ($1,335) $96,030 $92,218 $3,812 Canada/Mexico 2,290 2,499 (209) 7,835 7,013 822 ------------- ------------- -------------- ------------- ------------------ ---------- North America $25,592 $27,136 ($1,544) $103,865 $99,231 $4,634 Europe 7,332 8,503 (1,171) 28,674 29,344 (670) South America 642 537 105 2,536 2,273 263 Rest of World 1,541 1,109 432 6,155 4,225 1,930 ------------- ------------- -------------- ------------- ------------------ ---------- Worldwide $35,107 $37,285 ($2,178) $141,230 $135,073 $6,157 ============= ============= ============== ============= ================== ========== -------------------------------- COST OF SALES 4th Quarter Full Year -------------------------------- ------------------------------------------- ------------------------------------------- 00 B/(W) 00 B/(W) 2000 1999 Than 99 2000 1999 Than 99 ------------- ------------- -------------- ------------- ---------------- ------------ (Mils) (Mils) (Mils) (Mils) (Mils) (Mils) Total Costs and Expenses $33,966 $35,225 $1,259 $134,069 $127,461 $(6,608) Less: Depreciation 643 690 47 2,789 2,689 (100) Amortization 527 619 92 2,303 2,362 59 Selling and Admin. 2,775 2,729 (46) 9,701 8,717 (984) Pension Benefit Exp. 17 312 295 104 628 524 ------------- ------------- -------------- ------------- ---------------- ------------ Net Cost of Sales $30,004 $30,875 $871 $119,172 $113,065 ($6,107) ============= ============= ============== ============= ================= =========== Memo: Gross Margin 14.5% 17.2% -2.7 pts 15.6% 16.3% -0.7 pts Ford Motor Company FOURTH QTR & FULL YEAR 2000 DATA SHEET 2000 1999 3rd Qtr -------------------------- -------------------------- 2000 4th Qtr Full Year 4th Qtr Full Year ------------- ------------- ------------ ------------ ------------- Market Share Data (%) U.S. Car 18.0% 17.5% 19.1% 20.0% 19.6% Truck 27.7% 27.2% 28.2% 26.7% 28.2% Total 22.8% 22.5% 23.7% 23.5% 23.8% Europe Car 11.0% 10.1% 10.3% 9.8% 10.4% Truck 8.9% 7.6% 8.0% 8.5% 8.9% Total 10.7% 9.8% 10.0% 9.7% 10.2% U.S. Total Marketing Costs -- Variable and Fixed (% of Gross Revenue) 11.1% 10.7% 11.1% 9.8% 10.6% U.S. Sales Mix Fleet Sales (% of Total) 21% 29% 26% 25% 24% Red Carpet Lease (% of Total) 21% 14% 18% 11% 16% Red Carpet Lease (% of Retail) 26% 19% 25% 15% 21% U.S. Inventory (Days' Supply) Car 55 81 81 61 61 Truck 65 92 92 72 72 Average 61 88 88 68 68 Avg. Portfolio Borrowing Rate Ford Credit (%) 6.5% 6.6% 6.4% 5.8% 5.9% Worldwide Taxes EffectiveTax Rate 31.1% 31.5% 32.5% 32.5% 33.0% Common and Class B Shares Outstanding (Mils) Average - Actual 1,649 1,873 1,483 1,207 1,210 Average - Assuming Full Dilution 1,678 1,895 1,504 1,229 1,233 Period Ended - Actual 1,896 1,854 1,854 1,207 1,207 Value Enhancement Plan On August 7, 2000, we announced the final results of our recapitalization, known as our Value Enhancement Plan ("VEP"). Under the VEP, Ford shareholders exchanged each of their old Ford common or Class B shares for one new Ford common or Class B share, as the case may be, plus either $20 in cash, 0.748175 additional new Ford common shares, or a combination of $5.17 in cash and 0.555 additional new Ford shares. As a result of the elections made by shareholders under the VEP, the total number of new Ford common and Class B shares outstanding was 1.893 billion. For financial reporting purposes, under generally accepted accounting principles, prior period outstanding shares, diluted shares, and earnings per share ("EPS") amounts were not adjusted. Third quarter diluted shares were calculated based on a weighted average of 1.222 billion diluted shares for the period prior to the VEP and a weighted average of 1.929 billion diluted shares for the period subsequent to the VEP. Full year diluted shares were calculated based on an average of 2.136 billion diluted shares for the first quarter and second quarter, 1.998 billion diluted shares for the third quarter and 1.895 billion diluted shares for the fourth quarter. Diluted share amounts reflect actual outstanding shares adjusted for the effects of (i) issuable and uncommitted employee stock ownership plan shares and (ii) the dilutive effect of employee stock options. The following tables show, on a pro forma basis, how the results of the VEP would have adjusted prior period diluted share and EPS amounts had the VEP been structured as a 1.748175-for-1 stock split followed by a $5.7 billion share repurchase at a price per share of $26.7317. Such a stock split and share repurchase would have had substantially the same economic effect as the results of the VEP. The amounts in the tables are also adjusted to exclude (i) Visteon earnings and, for the second quarter of 2000, the $2,252 million one-time, non-cash charge resulting from the spin-off of Visteon on June 28, 2000 and (ii) special or one-time charges that we believe are not representative of our operating results on a continuing basis (e.g., second quarter 2000 after tax charges of $1,019 million for asset impairment and restructuring costs related to our Ford brand operations in Europe). Ford Motor Company EPS RECONCILIATION FOR VALUE ENHANCEMENT PLAN & VISTEON SPIN OFF 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year ------- ------- ------- ------- --------- 2000 - ----- Reported Net Income (Mils.) $ 2,079 $ (577) $ 888 $ 1,077 $ 3,467 - - Excluding Visteon (Mils.) 1,932 1,513 888 1,077 5,410 Operating Income (Mils.) 1,932 2,532 994 1,210 6,668 (Excl. One-Time Factors & Visteon) Avg. Number of Diluted Shares of Common & Class B Stock (Mils.) - - Reported 1,222 1,222 1,678 1,895 1,504 - - Adjusted for VEP 2,136 2,136 1,998 * 1,895 2,041** Diluted EPS Reported $ 1.70 $ (0.47) $ 0.53 $ 0.57 $ 2.30 Visteon 0.12 (1.71) - - (1.29) ----- ----- ------ ----- ------- Excluding Visteon $ 1.58 $ 1.24 $ 0.53 $ 0.57 $ 3.59 One-Time Factors 0 (0.83) (0.06) (0.07) (0.83) ------ ------ ------ ------ ------ Excluding One-Time Factors $ 1.58 $ 2.07 $ 0.59 $ 0.64 $ 4.42 Pro forma Adjusted Diluted EPS $ 0.90 $ 1.18 $ 0.50 $ 0.64 $ 3.26 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year ------- ------- ------- ------- --------- 1999 - ---- Reported Net Income (Mils.) $ 1,979 $ 2,338 $ 1,114 $ 1,806 $ 7,237 - - Excluding Visteon (Mils.) 1,774 2,058 959 1,711 6,502 Operating Income (Mils.) 1,609 2,204 1,186 1,791 6,790 (Excl. One-Time Factors & Visteon) Avg. Number of Diluted Shares of Common & Class B Stock (Mils.) - - Reported 1,237 1,237 1,231 1,229 1,233 - - Adjusted for VEP 2,162 2,162 2,152 2,149 2,155 Diluted EPS Reported $ 1.60 $ 1.89 $ 0.90 $ 1.47 $ 5.86 Visteon 0.17 0.23 0.12 0.08 0.60 ------ ------ ------ ------ ------ Excluding Visteon $ 1.43 $ 1.66 $ 0.78 $ 1.39 $ 5.26 One-Time Factors 0.14 (0.11) (0.17) (0.06) (0.23) ------ ------- ------- ------- ------ Excluding One-Time Factors $ 1.29 $ 1.77 $ 0.95 $ 1.45 $ 5.49 Pro forma Adjusted Diluted EPS $ 0.74 $ 1.01 $ 0.54 $ 0.83 $ 3.14 - - - - - - * Third Quarter average number of fully diluted shares outstanding, weighted by one month at 2,136 million shares and two months at 1,929 million shares. ** Full year average number of fully diluted shares outstanding, based on an average of 2.136 billion diluted shares for the 1st Qtr. and 2nd Qtr., 1.998 billion diluted shares for the 3rd Qtr. and 1.895 billion diluted shares for the 4th Qtr. Ford Motor Company and Subsidiaries Consolidated Statement of Income For the Periods Ended December 31, 2000 and 1999 (in millions) ----------------------------------- --------------------------- F O U R T H Q U A R T E R Y E A R TO D A T E ----------------------------------- --------------------------- 2000 1999 2000 1999 AUTOMOTIVE Sales 35,107 37,285 141,230 135,073 Costs and Expenses Costs of sales 31,348 32,573 126,120 118,985 Selling and administrative and other expenses 2,823 2,772 9,884 8,874 -------------- -------------- ------------- ------------- Total costs and expenses 34,171 35,345 136,004 127,859 -------------- -------------- ------------- ------------- Operating Income 936 1,940 5,226 7,214 Interest income 349 379 1,488 1,418 Interest expense 371 354 1,383 1,347 -------------- -------------- ------------- ------------- Net interest income/(expense) (22) 25 105 71 Equity in net income/(loss) of affiliated companies (6) 2 (70) 35 Net (expense) revenue from transactions with FSG (13) 17 6 (45) --------------- ------------- -------------- ------------- Income Before Income Taxes - Automotive 895 1,984 5,267 7,275 FINANCIAL SERVICES Revenues 7,480 6,637 28,834 25,585 Costs and Expenses Interest expense 2,544 1,978 9,519 7,679 Depreciation 2,375 2,373 9,408 9,254 Operating and other expense 1,254 1,349 4,971 4,653 Provision for credit and insurance losses 616 319 1,963 1,465 -------------- ------------- ------------- ------------- Total costs and expenses 6,789 6,019 25,861 23,051 Net revenue (expense) from transactions with Auto 13 (17) (6) 45 Gain on spin-off of the Associates (Note xx) - - - - Gain on sale of common stock of a subsidiary - - - - -------------- ------------- -------------- ------------ Income Before Income Taxes - Financial Services 704 601 2,967 2,579 -------------- ------------- -------------- ------------ TOTAL COMPANY INCOME BEFORE INCOME TAXES 1,599 2,585 8,234 9,854 PROVISION FOR INCOME TAXES 506 848 2,705 3,248 -------------- ------------- ------------- ------------- INCOME BEFORE MINORITY INTERESTS 1,093 1,737 5,529 6,606 Minority interests in net income of consolidated subsidiaries 16 26 119 104 -------------- ------------- ------------- ------------ NET INCOME FROM CONTINUING OPERATIONS 1,077 1,711 5,410 6,502 -------------- ------------- ------------- ------------ Net income from discontinued operation 0 95 309 735 Loss on spin-off of discontinued operations-Visteon 0 0 2,252 0 -------------- ------------- ------------- ------------ NET INCOME 1,077 1,806 3,467 7,237 ============== ============= ============= ============ Income/(Loss) attributable to Common & Class B Stock 1,073 1,802 3,452 7,222 after preferred stock dividends Avg. # of shares of Common & Class B stock outstdg 1,873 1,207 1,483 1,210 AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK Basic income from continuing operations 0.58 1.42 3.66 5.38 Basic income 0.58 1.50 2.34 5.99 Diluted income from continuing operations 0.57 1.39 3.59 5.26 Diluted income 0.57 1.47 2.30 5.86 Cash Dividends 0.30 0.46 1.16 1.88 Prior period selling, administrative and other expenses restated.