Exhibit 20
NEWS
Contact:
- -------
Media:
Todd Nissen
1.313.594.4410
tnissen@ford.com
Securities Analysts:
- -------------------
Anne Bork
1.313.323.8221
abork@ford.com
Shareholder Inquiries:
- ---------------------
1.800.555.5259 or
1.313.845.8540
stockinf@ford.com
Media Information Center
1.800.665.1515 or
1.313.621.0504
media@ford.com
Go to http://media.ford.com
for news releases and
high-resolution photographs.
IMMEDIATE RELEASE
- -----------------
FORD REPORTS SECOND QUARTER LOSS
BECAUSE OF TIRE REPLACEMENT ACTION
o Including Firestone costs, $551 million loss or 30 cents per share
(excluding one-time charges worth $201 million or 11 cents per share).
o Continued strong cash position of $18.9 billion, including VEBA.
o Full-year 2001 earnings outlook affirmed at $1.25-$1.35 per share.
DEARBORN, Mich., July 18 - Ford Motor Company [NYSE: F] reported a loss of $752
million, or 41 cents per diluted share, in the second quarter of 2001. The cost
to replace 13 million Firestone tires to ensure customer safety and satisfaction
more than accounted for the loss. As previously announced, the tire action is
expected to cost $2.1 billion after taxes. Essentially all of the costs were
reflected in the second quarter.
"Our decision in May to replace 13 million potentially unsafe Firestone tires
was an unprecedented action," said Jacques Nasser, president and CEO. "Although
we're disappointed it resulted in a second quarter loss, it was the right thing
to do for the safety and trust of our customers."
Excluding $201 million in charges for Ford's share of Mazda Motor Corporation's
restructuring actions reported in April and the new
-2-
accounting standard on hedging and derivatives, Ford lost $551 million, or 30
cents per diluted share. On a comparable basis, Ford earned $2.53 billion, or
$1.18 a share, in the second quarter of 2000.
Ford's worldwide vehicle unit sales in the 2001 second quarter were 1,858,000,
down 7 percent from 1,995,000 in the year-earlier quarter. Revenues were $42.31
billion, a 5 percent decline from $44.50 billion a year ago.
The following results include the Firestone tire replacement costs, but exclude
one-time charges that were taken in the second quarter of 2001, and charges for
a European restructuring and Visteon Corporation recorded in the 2000 second
quarter.
AUTOMOTIVE OPERATIONS
Worldwide automotive operations lost $1.03 billion in the second quarter,
compared to a profit of $2.07 billion a year ago. Worldwide automotive revenues
were $34.55 billion, compared with $37.37 billion a year ago.
Automotive gross cash at June 30 totaled $18.9 billion, including $2.7 billion
of pre-funding employee benefit expenses through a Voluntary Employee
Beneficiary Association (VEBA) trust. A continued focus on working capital
contributed to the company's strong cash position.
North America: The second quarter loss in North America was $1.14 billion.
Earnings in the 2000 second quarter were $1.84 billion. In addition to the tire
action, 2001 second quarter results were negatively affected by lower unit sales
volumes and higher marketing costs.
Europe: Ford earned $141 million in the second quarter in Europe, compared to
$156 million a year ago. Higher volumes for Ford-brand vehicles, fueled by
strong demand for the new Ford Mondeo and Ford Transit, were offset by losses at
Land Rover and the launch of the Jaguar X-TYPE.
-3-
South America: Ford operations in South America lost $70 million, compared to a
loss of $63 million a year ago. Results reflect weaker economic conditions in
Brazil and Argentina.
Rest-of-world: Results from the rest of the world were a profit of $47 million
compared to a profit of $135 million for the 2000 second quarter. The decline is
primarily attributable to Ford's share of Mazda losses.
FORD CREDIT
Ford Credit earned $399 million in the second quarter, up from $388 million a
year ago.
HERTZ
The Hertz Corporation reported a profit of $59 million. A year ago, Hertz had
second quarter earnings of $104 million. Slowdown in the economy and related
business travel, and a more difficult pricing environment, led to the lower
results.
OUTLOOK
"The second quarter was a difficult one for the Ford Motor Company. However, we
launched great new products, including an all-new version of the Ford Explorer
and Jaguar X-TYPE, and we're encouraged by the early market reactions," Nasser
said.
"Despite the challenges we face, Ford remains in a strong competitive position.
We have great brands and great products, and an integrated leadership team
that's highly focused on the business. In addition, our balance sheet remains
strong, and we continue to expect full-year 2001 earnings per share to be in the
range of $1.25-$1.35," Nasser said.
Investors can hear a review of first quarter results by Henry Wallace, chief
financial officer, on the Internet at www.streetevents.com or
www.streetfusion.com. The presentation will start at 9 a.m. EDT, July 18.
Ford Motor Company is the world's second largest automaker, selling vehicles in
200 markets and with approximately 345,000 employees on six continents. Its
automotive brands include
-4-
Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its
automotive-related services include Ford Credit, Hertz and Quality Care.
###
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; lower-than-anticipated market acceptance
of new or existing products; 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; a credit rating downgrade; 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.
Ford Motor Company and Subsidiaries
HIGHLIGHTS
----------
Second Quarter First Half
------------------------------- -----------------------------
2001 2000 2001 2000
-------------- ------------- ------------ -------------
(unaudited) (unaudited)
Worldwide vehicle unit sales of
cars and trucks (in thousands)
- - North America 1,142 1,308 2,245 2,619
- - Outside North America 716 687 1,425 1,290
------ ------ ------ ------
Total 1,858 1,995 3,670 3,909
====== ====== ====== ======
Sales and revenues (in millions)
- - Automotive $ 34,552 $ 37,366 $ 69,202 $ 73,541
- - Financial Services 7,762 7,133 15,558 13,862
--------- --------- --------- ---------
Total $ 42,314 $ 44,499 $ 84,760 $ 87,403
========= ========= ========= =========
Net income (loss) (in millions)
- - Automotive $ (1,194) $ 1,052 $ (505) $ 2,604
- - Financial Services 442 461 812 841
--------- --------- --------- ---------
Income (loss) from continuing operations (752) 1,513 307 3,445
- - Discontinued operation (Visteon) - 162 - 309
- - Loss on spin-off of Visteon - (2,252) - (2,252)
--------- --------- --------- ---------
Total $ (752) $ (577) $ 307 $ 1,502
========= ========= ========= =========
Capital expenditures (in millions)
- - Automotive $ 1,229 $ 1,453 $ 2,586 $ 2,952
- - Financial Services 99 158 230 464
--------- --------- --------- ---------
Total $ 1,328 $ 1,611 $ 2,816 $ 3,416
========= ========= ========= =========
Automotive capital expenditures as a
percentage of sales 3.6% 3.9% 3.7% 4.0%
Stockholders' equity at June 30
- - Total (in millions) $ 13,758 $ 24,643 $ 13,758 $ 24,643
- - Annualized after-tax return on Common
and Class B stockholders' equity Loss 22.9% 3.8% 25.4%
Automotive net cash at June 30
(in millions)
- - Cash and marketable securities $ 16,205 $ 25,557 $ 16,205 $ 25,557
- - Debt 12,061 10,804 12,061 10,804
--------- --------- --------- ---------
Automotive net cash $ 4,144 $ 14,753 $ 4,144 $ 14,753
========= ========= ========= =========
After-tax return on sales
- - North American Automotive (4.9)% 6.7% (1.0)% 6.4%
- - Total Automotive (3.4)% 2.9% (0.7)% 3.6%
Shares of Common and Class B Stock
(in millions)
- - Average number outstanding 1,819 1,205 1,829 1,206
- - Number outstanding at June 30 1,812 1,205 1,812 1,205
Common Stock price (per share)
(adjusted to reflect Visteon spin-off)
- - High $30.71 $31.46 $31.37 $31.46
- - Low 24.00 23.08 23.75 22.53
AMOUNTS PER SHARE OF COMMON AND
CLASS B STOCK AFTER PREFERRED
STOCK DIVIDENDS
Income assuming dilution
- - Automotive $ (0.65) $ 0.86 $ (0.28) $ 2.12
- - Financial Services 0.24 0.38 0.44 0.69
----------- ----------- --------- ---------
Subtotal (0.41) 1.24 0.16 2.81
- - Discontinued operation (Visteon) - 0.13 - 0.25
- - Loss on spin-off of Visteon - (1.84) - (1.84)
--------- --------- --------- ---------
Total $ (0.41) $ (0.47) $ 0.16 $ 1.22
========= ========= ========= =========
Cash dividends $ 0.30 $ 0.50 $ 0.60 $ 1.00
Ford Motor Company and Subsidiaries
VEHICLE UNIT SALES
------------------
For the Periods Ended June 30, 2001 and 2000
(in thousands)
Second Quarter First Half
------------------------- -------------------------
2001 2000 2001 2000
-------- -------- -------- -------
(unaudited) (unaudited)
North America
United States
Cars 397 448 760 929
Trucks 640 743 1,292 1,466
----- ----- ----- -----
Total United States 1,037 1,191 2,052 2,395
Canada 68 80 120 159
Mexico 37 37 73 65
----- ----- ----- -----
Total North America 1,142 1,308 2,245 2,619
Europe
Britain 167 139 347 254
Germany 115 83 221 174
Italy 64 58 127 107
Spain 53 54 93 94
France 40 41 83 83
Other countries 140 146 285 274
----- ----- ----- -----
Total Europe 579 521 1,156 986
Other international
Brazil 40 35 75 63
Australia 31 37 57 61
Taiwan 12 19 30 41
Argentina 8 12 15 27
Japan 5 8 10 17
Other countries 41 55 82 95
----- ----- ----- -----
Total other international 137 166 269 304
----- ----- ----- -----
Total worldwide vehicle unit sales 1,858 1,995 3,670 3,909
===== ===== ===== =====
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 unit sales.
Ford Motor Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
--------------------------------
For the Periods Ended June 30, 2001 and 2000
(in millions)
Second Quarter First Half
--------------------------- ---------------------------
2001 2000 2001 2000
----------- ----------- ----------- -----------
(unaudited) (unaudited)
AUTOMOTIVE
Sales $34,552 $37,366 $69,202 $73,541
Costs and expenses (Note 2)
Cost of sales (Note 3) 33,648 33,495 64,463 65,083
Selling, administrative and other expenses 2,336 2,458 4,842 4,723
------- ------- ------- -------
Total costs and expenses 35,984 35,953 69,305 69,806
Operating income (loss) (1,432) 1,413 (103) 3,735
Interest income 218 389 473 757
Interest expense 330 327 697 645
------- ------- ------- -------
Net interest income (expense) (112) 62 (224) 112
Equity in net income (loss) of affiliated companies (162) 29 (340) (3)
------- ------- ------- -------
Income (loss) before income taxes - Automotive (1,706) 1,504 (667) 3,844
FINANCIAL SERVICES
Revenues 7,762 7,133 15,558 13,862
Costs and expenses
Interest expense 2,484 2,311 5,044 4,524
Depreciation 2,674 2,398 5,193 4,606
Operating and other expenses (Note 3) 1,342 1,249 2,779 2,460
Provision for credit and insurance losses 572 411 1,258 865
------- ------- ------- -------
Total costs and expenses 7,072 6,369 14,274 12,455
------- ------- ------- -------
Income before income taxes - Financial Services 690 764 1,284 1,407
------- ------- ------- -------
TOTAL COMPANY
Income (loss) before income taxes (1,016) 2,268 617 5,251
Provision for income taxes (284) 728 287 1,750
------- ------- ------- -------
Income (loss) before minority interests (732) 1,540 330 3,501
Minority interests in net income of subsidiaries 20 27 23 56
------- ------- ------- -------
Income (loss) from continuing operations (752) 1,513 307 3,445
Income from discontinued operation (Note 4) - 162 - 309
Loss on spin-off of discontinued operation (Note 4) - (2,252) - (2,252)
------- ------- ------- -------
Net income (loss) $ (752) $ (577) $ 307 $ 1,502
======= ======= ======= =======
Income (loss) attributable to Common and Class B
Stock after preferred stock dividends $ (755) $ (580) $ 300 $ 1,495
Average number of shares of Common and Class B
Stock outstanding 1,819 1,205 1,829 1,206
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK (Notes 5 and 6)
Basic Income
Income (loss) from continuing operations $ (0.42) $ 1.26 $ 0.16 $ 2.87
Net income (loss) $ (0.42) $ (0.48) $ 0.16 $ 1.25
Diluted Income
Income (loss) from continuing operations $ (0.41) $ 1.24 $ 0.16 $ 2.81
Net income (loss) $ (0.41) $ (0.47) $ 0.16 $ 1.22
Cash dividends $ 0.30 $ 0.50 $ 0.60 $ 1.00
The accompanying notes are part of the financial statements.
Ford Motor Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
--------------------------
(in millions)
June 30, December 31,
2001 2000
---------------- -----------------
(unaudited)
ASSETS
Automotive
Cash and cash equivalents $ 4,703 $ 3,374
Marketable securities 11,502 13,116
-------- --------
Total cash and marketable securities 16,205 16,490
Receivables 3,375 4,685
Inventories (Note 7) 7,220 7,514
Deferred income taxes 2,735 2,239
Other current assets 5,466 5,318
Current receivable from Financial Services 1,487 1,587
-------- --------
Total current assets 36,488 37,833
Equity in net assets of affiliated companies 2,961 2,949
Net property 35,421 37,508
Deferred income taxes 3,504 3,342
Other assets 12,714 13,711
-------- --------
Total Automotive assets 91,088 95,343
Financial Services
Cash and cash equivalents 1,883 1,477
Investments in securities 682 817
Finance receivables, net 128,263 125,164
Net investment in operating leases 49,195 46,593
Other assets 15,798 12,390
Receivable from Automotive 2,637 2,637
-------- --------
Total Financial Services assets 198,458 189,078
-------- --------
Total assets $289,546 $284,421
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive
Trade payables $ 15,588 $ 15,075
Other payables 4,718 4,011
Accrued liabilities 23,982 23,515
Income taxes payable 29 449
Debt payable within one year 226 277
-------- --------
Total current liabilities 44,543 43,327
Long-term debt 11,835 11,769
Other liabilities 30,535 30,495
Deferred income taxes 291 353
Payable to Financial Services 2,637 2,637
-------- --------
Total Automotive liabilities 89,841 88,581
Financial Services
Payables 5,644 5,297
Debt 162,102 153,510
Deferred income taxes 8,792 8,677
Other liabilities and deferred income 7,249 7,486
Payable to Automotive 1,487 1,587
-------- --------
Total Financial Services liabilities 185,274 176,557
Company-obligated mandatorily redeemable preferred securities of a subsidiary
tTrust holding solely junior subordinated debentures of the Company (Note 8) 673 673
Stockholders' equity
Capital stock
Preferred Stock, par value $1.00 per share (aggregate liquidation preference
of $177 million) * *
Common Stock (par value $0.01 per share (1,837 million shares issued) 18 18
Class B Stock, par value $0.01 per share (71 million shares issued) 1 1
Capital in excess of par value of stock 5,980 6,174
Accumulated other comprehensive income (Notes 3 and 9) (6,350) (3,432)
ESOP loan and treasury stock (2,975) (2,035)
Earnings retained for use in business 17,084 17,884
-------- --------
Total stockholders' equity 13,758 18,610
-------- --------
Total liabilities and stockholders' equity $289,546 $284,421
======== ========
- - - - - -
*Less than $1 million
The accompanying notes are part of the financial statements.
Ford Motor Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
----------------------------------------------
For the Periods Ended June 30, 2001 and 2000
(in millions)
First Half 2001 First Half 2000
--------------------------- ----------------------------
Financial Financial
Automotive Services Automotive Services
------------ ----------- ------------ --------------
(unaudited) (unaudited)
Cash and cash equivalents at January 1 $ 3,374 $ 1,477 $ 2,793 $ 1,588
Cash flows from operating activities before securities trading 6,427 7,275 9,181 9,953
Net sales (purchases) of trading securities 1,686 (148) 419 60
------- -------- ------- --------
Net cash flows from operating activities 8,113 7,127 9,600 10,013
Cash flows from investing activities
Capital expenditures (2,586) (230) (2,952) (464)
Acquisitions of receivables and lease investments - (48,003) - (44,986)
Collections of receivables and lease investments - 25,852 - 21,724
Net acquisitions of daily rental vehicles - (2,362) - (2,469)
Purchases of securities (10,729) (485) (2,261) (302)
Sales and maturities of securities 10,657 476 2,217 312
Proceeds from sales of receivables and lease investments - 10,141 - 7,704
Net investing activity with Financial Services (460) - 45 -
Cash paid for acquisitions (Note 10) (1,868) (742) (2,060) (76)
Other 366 (35) 0 190
------- --------- ------- --------
Net cash used in investing activities (4,620) (15,388) (5,011) (18,367)
Cash flows from financing activities
Cash dividends (1,107) - (1,578) -
Net purchases of Common Stock (1,322) - (192) -
Changes in short-term debt (70) (2,375) (707) (5,588)
Proceeds from issuance of other debt 188 25,028 205 22,321
Principal payments on other debt (103) (13,791) (424) (7,574)
Net debt repayments from discontinued operations - - 650 -
Net cash distribution to discontinued operations - - (85) -
Net financing activity with Automotive - 460 - (45)
Other 170 (362) 694 517
------- --------- ------- --------
Net cash (used in)/provided by financing activities (2,244) 8,960 (1,437) 9,631
Effect of exchange rate changes on cash (20) (193) (1) (145)
Net transactions with Automotive/Financial Services 100 (100) 1,045 (1,045)
------- -------- ------- --------
Net increase in cash and cash equivalents 1,329 406 4,196 87
-------- -------- -------- --------
Cash and cash equivalents at June 30 $ 4,703 $ 1,883 $ 6,989 $ 1,675
======= ======== ======= ========
The accompanying notes are part of the financial statements.
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 statement 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, 2000. For purposes of
Notes to Financial Statements, "Ford" or the "Company" means Ford Motor
Company and its majority owned subsidiaries unless the context requires
otherwise. Certain amounts for prior periods were reclassified to conform
with present period presentation.
2. Selected Automotive costs and expenses are summarized as follows
(in millions):
Second Quarter First Half
----------------------- -----------------------
2001 2000 2001 2000
--------- ---------- ---------- ---------
Depreciation $682 $718 $1,357 $1,412
Amortization 624 628 1,350 1,202
Pension expense (benefit) (76) (51) (161) 13
3. SFAS 133 ("Accounting for Derivative Instruments and Hedges") - Non-cash
adjustments to income and to stockholders' equity for the second quarter
and first half of 2001 were (in millions):
Automotive Financial Services Total Company
-------------------------- ----------------------------- ------------------------
Second First Second First Second First
Quarter Half Quarter Half Quarter Half
------- ---- ------- ---- ------- ----
Income before income taxes * $(77) $(167) $(51) $(71) $ (128) $ (238)
Net income (55) (114) (32) (45) (87) (159)
Stockholders' equity ** (103) (1,328)
* Automotive recorded in cost of sales; Financial Services recorded in
operating and other expenses
** Recorded in accumulated other comprehensive income
4. Discontinued Operation - On June 28, 2000, Ford distributed 130 million
shares of Visteon Corporation ("Visteon"), which represented its 100%
ownership interest, by means of a tax-free spin-off in the form of a
dividend on Ford Common and Class B Stock. Ford's financial statements
reflect Visteon as a "discontinued operation".
5. Value Enhancement Plan - On August 7, 2000, the Company announced the final
results of its recapitalization, known as the 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, at their election, either $20 in cash, 0.748 additional
new Ford Common shares, or a combination of $5.17 in cash and 0.555
additional new Ford Common shares. As a result of the elections made by
shareholders under the VEP, the total cash elected was $5.7 billion and the
total number of new Ford Common and Class B shares that became issued and
outstanding was 1.893 billion. As a result of the VEP, approximately $1.2
billion was transferred from capital stock to capital in excess of par
value of stock.
In accordance with generally accepted accounting principles, prior period
shares and earnings per share amounts were not adjusted.
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(unaudited)
6. Income Per Share of Common and Class B Stock - Basic income per share of
Common and Class B Stock is calculated by dividing the income attributable
to Common and Class B Stock by the average number of shares of Common and
Class B Stock outstanding during the applicable period, adjusted for shares
issuable under employee savings and compensation plans.
The calculation of diluted income per share of Common and Class B Stock
takes into account the effect of dilutive potential common stock, such as
stock options.
Income (loss) per share of Common and Class B Stock was as follows (in
millions, except per share amounts):
Second Quarter 2001 Second Quarter 2000
------------------------- -------------------------
Income Shares Income Shares
----------- ------------- ----------- -------------
Income (loss) from continuing operations $ (752) 1,819 $1,513 1,205
Preferred stock dividend requirements (3) - (3) -
Issuable and uncommitted ESOP shares - (8) - (9)
-------- ------- -------- -------
Basic income (loss) and shares from continuing operations $ (755) 1,811 $1,510 1,196
Basic income (loss) per share from continuing operations $(0.42) $ 1.26
Basic income per share from discontinued operation - 0.14
Basic loss per share on spin-off of discontinued operation - (1.88)
------- -------
Basic income (loss) per share $(0.42) $(0.48)
Basic income (loss) and shares from continuing operations $ (755) 1,811 $1,510 1,196
Net dilutive effect of options - 37 - 26
-------- ------ -------- ------
Diluted income (loss) and shares from continuing operations $ (755) 1,848 $1,510 1,222
Diluted income (loss) per share from continuing operations $(0.41) $ 1.24
Diluted income per share from discontinued operation - 0.13
Diluted loss per share on spin-off of discontinued operation - (1.84)
------- -------
Diluted loss per share $(0.41) $(0.47)
First Half 2001 First Half 2000
------------------------- -------------------------
Income Shares Income Shares
----------- ------------- ----------- -------------
Income from continuing operations $ 307 1,829 $3,445 1,206
Preferred stock dividend requirements (7) - (7) -
Issuable and uncommitted ESOP shares - (10) - (8)
-------- ------- -------- -------
Basic income and shares from continuing operations $ 300 1,819 $3,438 1,198
Basic income per share from continuing operations $ 0.16 $ 2.87
Basic income per share from discontinued operation - 0.26
Basic loss per share on spin-off of discontinued operation - (1.88)
------- -------
Basic income per share $ 0.16 $ 1.25
Basic income and shares from continuing operations $ 300 1,819 $3,438 1,198
Net dilutive effect of options - 38 - 25
-------- ------- -------- -------
Diluted income and shares from continuing operations $ 300 1,857 $3,438 1,223
Diluted income per share from continuing operations $ 0.16 $ 2.81
Diluted income per share from discontinued operation - 0.25
Diluted loss per share on spin-off of discontinued operation - (1.84)
------- -------
Diluted income per share $ 0.16 $ 1.22
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(unaudited)
7. Automotive Inventories are summarized as follows (in millions):
June 30, December 31,
2001 2000
------------- ------------
Raw materials, work in process and supplies $2,688 $2,798
Finished products 4,532 4,716
------ ------
Total inventories $7,220 $7,514
====== ======
8. Company-Obligated Mandatorily Redeemable Preferred Securities of a
Subsidiary Trust - The sole asset of Ford Motor Company Capital Trust I
(the "Trust"), which is the obligor on the Preferred Securities of such
Trust, is $632 million principal amount of 9% Junior Subordinated
Debentures due 2025 of Ford Motor Company.
9. Comprehensive Income - Other comprehensive income primarily reflects
foreign currency translation adjustments and adjustments related to SFAS
133 (Note 3). Total comprehensive income is summarized as follows (in
millions):
Second Quarter First Half
------------------------- ------------------------
2001 2000 2001 2000
----------- ---------- ---------- ---------
Net income (loss) $ (752) $ (577) $ 307 $ 1,502
Other comprehensive income (loss) (582) (481) (2,918) (1,078)
------- ------- ------- -------
Total comprehensive income (loss) $(1,334) $(1,058) $(2,611) $ 424
======= ======= ======= =======
10. Acquisitions and Restructurings
Hertz Purchase - In March 2001, through a tender offer and a merger
transaction, Ford acquired (for a total price of $735 million) the common
stock of Hertz that it did not own, which represented about 18% of the
economic interest in Hertz.
Purchase of Land Rover Business - On June 30, 2000, Ford purchased the
Land Rover business from the BMW Group for approximately three billion
euros. Approximately two-thirds of the purchase price (equivalent of $1.9
billion at June 30, 2000) was paid at time of closing; the remainder will
be paid in 2005. The acquisition involves the entire Land Rover line of
products and related assembly and engineering facilities. It does not
include Rover's passenger car business or financial services business.
European Charges - Following an extensive business review of the Ford
Brand operations in Europe, the Company recorded a pre-tax charge in
Automotive cost of sales of $1,568 million in the second quarter of 2000.
This charge included $1.1 billion for asset impairments and $468 million
for restructuring costs. The effect on after-tax earnings was $1,019
million.
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(unaudited)
11. Segment Information - Ford's business is divided into two business sectors
- Automotive and Financial Services (including Ford Credit and Hertz);
detail is summarized as follows (in millions):
Financial Services Sector
----------------------------------
Auto Ford Other Elims/
Second Quarter Sector Credit Hertz Fin Svcs Other Total
------------ ---------- -------- ------------ ------------ ------------
2001
- ----
Revenues
External customer $ 34,552 $ 6,256 $ 1,281 $ 219 $ 6 $ 42,314
Intersegment 1,316 118 6 45 (1,485) -
-------- -------- ------- ------ ------- --------
Total Revenues $ 35,868 $ 6,374 $ 1,287 $ 264 $(1,479) $ 42,314
======== ======== ======= ====== ======= ========
Income (loss) from
continuing operations $ (1,194) $ 367 $ 59 $ 14 $ 2 $ (752)
2000
- ----
Revenues
External customer $ 37,366 $ 5,778 $ 1,271 $ 64 $ 20 $ 44,499
Intersegment 1,338 41 7 62 (1,448) -
-------- -------- ------- ------ ------- --------
Total Revenues $ 38,704 $ 5,819 $ 1,278 $ 126 $(1,428) $ 44,499
======== ======== ======= ====== ======= ========
Income (loss) from continuing
operations $ 1,052 $ 388 $ 104 $ (18) $ (13) $ 1,513
Financial Services Sector
-----------------------------------
Auto Ford Other Elims/
First Half Sector Credit Hertz Fin Svcs Other Total
----------- ---------- ----------- ---------- ----------- ------------
2001
- ----
Revenues
External customer $ 69,202 $ 12,604 $ 2,457 $ 483 $ 14 $ 84,760
Intersegment 2,544 240 14 72 (2,870) -
-------- -------- ------- ------ ------- --------
Total Revenues $ 71,746 $ 12,844 $ 2,471 $ 555 $(2,856) $ 84,760
======== ======== ======= ====== ======= ========
Income (loss) from continuing
operations $ (505) $ 760 $ 55 $ (1) $ (2) $ 307
Total assets at June 30 $ 93,963 $182,045 $12,185 $7,816 $(6,463) $289,546
2000
- ----
Revenues
External customer $ 73,541 $ 11,269 $ 2,402 $ 172 $ 19 $ 87,403
Intersegment 2,496 80 15 104 (2,695) -
-------- -------- ------- ------ ------- --------
Total Revenues $ 76,037 $ 11,349 $ 2,417 $ 276 $(2,676) $ 87,403
======== ======== ======= ====== ======= ========
Income (loss) from continuing
operations $ 2,604 $ 741 $ 160 $ (29) $ (31) $ 3,445
Total assets at June 30 $104,363 $167,821 $11,451 $8,002 $(7,057) $284,580
- - - - - -
"Other Financial Services" data is an aggregation of miscellaneous smaller
Financial Services Sector business components, including Ford Motor Land
Development Corporation, Ford Leasing Development Company, Ford Leasing
Corporation and Granite Management Corporation.
"Eliminations/Other" data includes intersegment eliminations and minority
interests. Interest income for the operating segments in the Financial Services
Sector is reported as "Revenues".