Exhibit 12
Ford Motor Company and Subsidiaries
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
- - ----------------------------------------------------------------------------------------
(in millions)
First
Quarter For the Years Ended December 31
----------------------------------------------------------
1994 1993 1992 1991 1990 1989
------- -------- -------- -------- -------- --------
Earnings
Income/(loss) before income taxes
and cumulative effects of changes
in accounting principles $ 1,766 $ 4,003 $ (127) $(2,587) $ 1,495 $ 6,030
Equity in net (income)/loss of
affiliates plus dividends from
affiliates 9 (98) 26 69 171 (137)
Adjusted fixed charges a/ 1,874 7,648 8,113 9,360 9,690 9,032
------- ------- ------- ------- ------- -------
Earnings $ 3,649 $11,553 $ 8,012 $ 6,842 $11,356 $14,925
======= ======= ======= ======= ======= =======
Combined Fixed Charges and
Preferred Stock Dividends
- - --------------------------
Interest expense b/ $ 1,784 $ 7,351 $ 7,987 $ 9,326 $ 9,647 $ 8,624
Interest portion of rental expense c/ 67 266 185 124 105 103
Preferred stock dividend requirements
of majority-owned subsidiaries d/ 42 115 77 56 83 16
------- ------- ------- ------- ------- -------
Fixed charges 1,893 7,732 8,249 9,506 9,835 8,743
Ford preferred stock dividend
requirements e/ 140 442 317 26 0 0
------- ------- ------- ------- ------- -------
Total combined fixed charges
and preferred stock dividends $ 2,033 $ 8,174 $ 8,566 $ 9,532 $ 9,835 $ 8,743
======= ======= ======= ======= ======= =======
Ratios
Ratio of earnings to fixed charges 1.9 1.5 f/ g/ 1.2 1.7
Ratio of earnings to combined fixed
charges and preferred stock dividends 1.8 1.4 h/ i/ 1.2 1.7
- - - - - - -
a/ Fixed charges, as shown below, have been adjusted to exclude the amount of
interest capitalized during the period and preferred stock dividend
requirements of majority-owned subsidiaries.
b/ Includes interest, whether expensed or capitalized, and amortization of debt
expense and discount or premium relating to any indebtedness.
c/ One-third of all rental expense is deemed to be interest.
d/ Preferred stock dividend requirements of Ford Holdings, Inc., have been
increased to an amount representing the pre-tax earnings which would
be required to cover such dividend requirements based on Ford's effective
income tax rates for all periods except 1992. The U.S. statutory rate of
34% was used for 1992.
e/ Preferred stock dividend requirements of Ford Motor Company, have been
increased to an amount representing the pre-tax earnings which would be
required to cover such dividend requirements based on Ford's effective
income tax rates for all periods except 1992. The U.S. statutory rate of
34% was used for 1992.
f/ Earnings were inadequate to cover fixed charges by $237 million.
g/ Earnings were inadequate to cover fixed charges by $2,664 million.
h/ Earnings were inadequate to cover combined fixed charges and preferred stock
dividends by $554 million.
i/ Earnings were inadequate to cover combined fixed charges and preferred stock
dividends by $2,690 million.
-18-