Exhibit 20
NEWS
Contact:
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Media:
Todd Nissen
1.313.594.4410
tnissen@ford.com
Securities Analysts:
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Anne Bork
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abork@ford.com
Shareholder Inquiries:
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1.800.555.5259 or
1.313.845.8540
stockinf@ford.com
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Go to http://media.ford.com
for news releases and
high-resolution photographs.
IMMEDIATE RELEASE
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FORD REPORTS LOSSES FOR FULL-YEAR AND FOURTH QUARTER 2001
o Fourth quarter operating loss was 48 cents per share.
o Fourth quarter operating profits improve in Europe.
o Net cash increases $800 million, to $3.9 billion.
DEARBORN, Mich., Jan. 17 - Ford Motor Company [NYSE: F] today reported a net
loss of $5.45 billion, or $3.02 per share, for full-year 2001. Excluding
previously announced unusual charges and other items, Ford lost $782 million,
or 44 cents per share.
The full-year results compare to net income of $3.47 billion or $2.30 per
diluted share in 2000. Operating earnings before unusual items for full-year
2000 were $6.67 billion or $3.26 per share.
Revenues for 2001 were $162.4 billion, down 5 percent from $170.1 billion a year
ago. Vehicle unit sales were 6,991,000, a 6 percent decline from 7,424,000.
"This was a challenging, difficult year for the Ford Motor Company and our
financial performance was unacceptable," said Chairman and CEO Bill Ford. "As
outlined in our revitalization plan, we are committed to regaining our momentum
and getting back on track. The difficult actions we announced last week will
focus us on designing, building and selling the industry's best cars and trucks
- - and restoring the company's profitability. "
-2-
Ford's 2001 full-year loss before unusual items primarily reflects lower volume
in North America, significantly higher marketing and product costs, customer
satisfaction initiatives, as well as increased credit losses at Ford Credit.
However, Ford scored numerous product successes in 2001. Ford was the
best-selling brand of cars and trucks in the U.S. for the 15th year in a row,
capturing five of the top 10 best-selling vehicles. The Ford F-Series was the
top-selling truck for the 25th year in a row. The Ford Explorer was the
industry's best-selling SUV in the U.S. for the 11th year in a row. In addition,
Jaguar and Volvo set all-time sales records in 2001 - as well as set new U.S.
sales records for the third year in a row.
In 2002, Ford will launch several new important products including the Ford
Expedition, Lincoln Navigator, Lincoln Aviator, Volvo XC90 and Land Rover Range
Rover.
FOURTH QUARTER
Ford reported a loss of $5.07 billion, or $2.81 per share, for the 2001 fourth
quarter. Excluding previously announced unusual charges of $4.1 billion and an
additional $102 million non-cash charge for the accounting standard on hedging
and derivatives, fourth quarter operating loss was $860 million, or 48 cents per
share.
Ford earned $1.08 billion, or 57 cents per share, in the fourth quarter of 2000.
Operating earnings from the fourth quarter of 2000 were $1.21 billion, or 64
cents per share.
Total revenues in the 2001 fourth quarter were $41.15 billion, a 3 percent
decline from $42.59 billion a year ago. Worldwide vehicle unit sales in the 2001
fourth quarter were 1,808,000, down 2 percent from 1,840,000.
The following operating results exclude unusual items in both years.
-3-
AUTOMOTIVE OPERATIONS
Worldwide automotive operations lost $1.96 billion in 2001, compared to a profit
of $4.88 billion a year ago. Worldwide automotive revenues were $131.53 billion,
a decline of 7 percent from $141.23 billion a year ago.
In the fourth quarter, worldwide automotive operations lost $803 million on
revenues of $33.77 billion. That compares to a profit of $762 million on
revenues of $35.11 billion in the fourth quarter of 2000.
Automotive gross cash at Dec. 31, 2001 totaled $17.7 billion, including $2.6
billion of pre-funding employee benefit expenses through a Voluntary Employee
Beneficiary Association (VEBA) trust. Cash exceeded debt by $3.9 billion at
year-end, $800 million better than at Sept. 30.
North America: The 2001 full-year loss in North America was $2.15 billion on
revenues of $90.95 billion. Earnings in 2000 were $5.03 billion on revenues of
$103.87 billion.
Fourth-quarter 2001 results were a loss of $916 million, compared to a profit of
$740 million a year ago. Revenue declined to $23.26 billion from $25.59 billion.
The decline was primarily a result of the intense competitive environment in the
U.S., which led to lower unit sales volume and higher marketing costs. Marketing
costs in the U.S. as a percent of revenue in the fourth quarter were 16.7
percent of revenues, up 6 points from a year ago.
As a result of the financial losses in 2001, there will be no profit-sharing for
U.S. hourly employees. Bonus payments for salaried workers for 2001 were also
eliminated, along with other compensation benefits.
Europe: Ford earned a full-year 2001 profit of $266 million in Europe, reversing
a loss of $35 million a year ago. Revenues were $31.93 billion, 11 percent
higher than $28.67 billion a year ago.
-4-
Fourth-quarter 2001 results from Europe were a profit of $61 million on revenues
of $8.46 billion. That compares to a profit of $33 million on revenues of $7.33
billion in the fourth quarter of 2000. Strong new Ford brand products, including
the Mondeo and Transit, and cost reductions led to the improved 2001 results.
South America: Ford operations in South America lost $225 million in full-year
2001, an improvement from a loss of $240 million a year ago. Revenue was $2.23
billion, down from $2.54 billion in 2000.
Fourth-quarter 2001 losses were $46 million, on revenues of $466 million. The
2000 fourth quarter was a loss of $31 million on revenues of $642 million.
Continuing weak economic conditions in Brazil and Argentina contributed to the
lower results.
Rest-of-world: Operations from the rest of the world reported a full-year 2001
profit of $156 million on revenues of $6.42 billion. That compares to income of
$125 million on revenues of $6.16 billion in 2000.
In the fourth quarter of 2001, profits were $98 million, up from $20 million a
year ago. Revenues were $1.59 billion, an increase from $1.54 billion in 2000.
FORD CREDIT
Ford Credit earned $1.20 billion in 2001 excluding unusual items, down 22
percent from $1.54 billion in 2000. In the fourth quarter, Ford Credit reported
a profit of $6 million before charges, compared to $410 million a year ago. The
reduction was more than accounted for by a higher provision for credit losses.
HERTZ
Hertz reported full-year 2001 earnings of $23 million, down from $358 million in
2000. Hertz lost $58 million in the fourth quarter, compared to earnings of $56
million in the fourth quarter of 2000. The decline is attributable to a slowing
U.S. economy which affected U.S. travel and car rentals, as well as a more
competitive pricing environment for all Hertz business units.
-4-
OUTLOOK
"Although the U.S. economy continues to be uncertain, we estimate total vehicle
demand will be about 15.5 million units," said Nick Scheele, Ford president and
chief operating officer. "Our North American production forecast calls for
making 1,050,000 cars and trucks in the first quarter. This is down three
percent from 1,078,000 in the 2001 first period.
"For Ford Motor Company, 2002 will be a year of transition as we concentrate on
implementing our revitalization plan," Scheele said.
Investors can hear a review of fourth quarter and full-year 2001 results by
Martin Inglis, chief financial officer, on the Internet at www.streetevents.com.
The presentation will start at 9 a.m. EST, Jan. 17.
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 Aston Martin, Ford, Jaguar, Land Rover, Lincoln,
Mazda, Mercury and Volvo. Its automotive-related services include Ford Credit,
Hertz and Quality Care.
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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; the discovery of defects in vehicles resulting in recall
campaigns, increased warranty costs or litigation; an inability to implement the
revitalization program.