Exhibit 12
FORD MOTOR COMPANY AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(in millions)
For the Years Ended December 31
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First
Six
Months
2005 2004 2003 2002 2001 2000
-------- -------- -------- -------- -------- --------
Earnings
- --------
Income before income taxes and cumulative effects
of changes in accounting principles (a)........................ $ 2,275 $ 4,853 $ 1,339 $ 1,064 $ (7,325) $ 8,387
Less: Equity in net (income)/loss of affiliates include in
income before income taxes..................................... (132) (240) (155) 137 550 50
-------- -------- -------- -------- -------- --------
Adjusted income.................................................. 2,143 4,613 1,184 1,201 (6,775) 8,437
Adjusted fixed charges (b)....................................... 4,010 7,736 8,466 9,696 11,259 11,226
-------- -------- -------- -------- -------- --------
Earnings......................................................... $ 6,153 $ 12,349 $ 9,650 $ 10,897 $ 4,484 $ 19,663
======== ======== ======== ======== ======== ========
Combined Fixed Charges and Preferred Stock Dividends
- ----------------------------------------------------
Interest expense (c)............................................. $ 3,718 $ 7,128 $ 7,706 $ 8,847 $ 10,830 $ 10,781
Interest portion of rental expense (d)........................... 250 565 524 448 394 369
Preferred Stock dividend requirements of majority owned
subsidiaries and trusts........................................ -- -- 190 353 55 55
-------- -------- -------- -------- -------- --------
Fixed charges................................................. 3,968 7,693 8,420 9,648 11,279 11,205
Ford Preferred Stock dividend requirements (e)................... -- -- -- 22 22 22
-------- -------- -------- -------- -------- --------
Total combined fixed charges and Preferred Stock dividends.... $ 3,968 $ 7,693 $ 8,420 $ 9,670 $ 11,301 $ 11,227
======== ======== ======== ======== ======== ========
Ratios
- ------
Ratio of earnings to fixed charges............................ 1.6 1.6 1.1 1.1 (f) 1.8
Ratio of earnings to combined fixed charges and Preferred
Stock dividends............................................. 1.6 1.6 1.1 1.1 (f) 1.8
Discontinued operations are excluded from all amounts.
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(a) Income before taxes includes equity income from unconsolidated
subsidiaries.
(b) Fixed charges, as shown above, adjusted to exclude the amount of interest
capitalized during the period and Preferred Stock dividend requirements of
majority owned subsidiaries and trusts. (Capitalized interest: 2005 YTD -
$35 mil; 2004 - $57 mil; 2003 - $63 mil; 2002 - $46 mil; 2001 - $44 mil;
2000 - $32 mil)
(c) Includes interest, whether expensed or capitalized, and amortization of
debt expense and discount or premium relating to any indebtedness.
(d) One-third of all rental expense is deemed to be interest.
(e) Preferred Stock dividend requirements of Ford Motor Company were increased
to an amount representing the pre-tax earnings which would be required to
cover such dividend requirements based on Ford Motor Company's effective
income tax rates.
(f) Earnings for the year ended December 31, 2001 were inadequate to cover
fixed charges by $6.8 billion.
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