Exhibit 11
Page 1 of 2
Ford Motor Company and Subsidiaries
COMPUTATION OF PRIMARY AND FULLY DILUTED EARNINGS PER SHARE
-----------------------------------------------------------
IN ACCORDANCE WITH OPINION 15 OF THE ACCOUNTING PRINCIPLES BOARD
----------------------------------------------------------------
Third Quarter 1996 Third Quarter 1995
-------------------------------- -------------------------------
Income Income
Attributable Attributable
Avg. Shares to Common Avg. Shares to Common
of Common and Class B Stock of Common and Class B Stock
and Class B ------------------ and Class B -----------------
Stock Per Stock Per
Outstanding Total Share Outstanding Total Share
----------- --------- ------- ----------- --------- ------
(Mils.) (Mils.) (Mils.) (Mils.)
Preliminary Earnings Per Share Calculation 1,183 $670 $0.57 1,083 $302 $0.28
I. Primary Earnings Per Share
--------------------------
. Assuming exercise of options 49 47
. Assuming purchase of shares with proceeds of
options (34) (31)
. Assuming issuance of shares contingently issuable 2 2
. Uncommitted ESOP shares (7) (2)
----- -----
Net Common Stock Equivalents 10 16
----- -----
Primary Earnings Per Share Calculation 1,193 $670 $0.56a/ 1,099 $302 $0.27a/
===== ==== ===== ===== ==== =====
II. Fully Diluted Earnings Per Share
--------------------------------
Primary Earnings Per Share Calculation 1,193 $670 $0.56 1,099 $302 $0.27
. Assuming conversion of convertible preferred
stock 16 5b/ 101 32b/
. Reduction in shares assumed to be purchased
with option proceeds c/ 0 1
----- ---- ----- ----
Fully Diluted Earnings Per Share Calculation 1,209 $675 $0.56 1,201 $334 $0.27d/
===== ==== ===== ===== ==== =====
- - - - - -
a/ The effect of common stock equivalents and/or other dilutive securities was
not material in this period; therefore, the amount presented on the income
statement is the Preliminary Earnings Per Share Calculation.
b/ Reflects the elimination of preferred dividends upon conversion.
c/ Incremental effect of dividing assumed option proceeds by the ending price,
rather than the average price, of Common Stock for each period when the
ending price exceeds the average price.
d/ The effect on earnings per share of the assumed conversion of convertible
preferred stock was anti-dilutive and, accordingly, is excluded in the Fully
Diluted Earnings Per Share Calculation for the period indicated.
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Exhibit 11
Page 2 of 2
Ford Motor Company and Subsidiaries
COMPUTATION OF PRIMARY AND FULLY DILUTED EARNINGS PER SHARE
-----------------------------------------------------------
IN ACCORDANCE WITH OPINION 15 OF THE ACCOUNTING PRINCIPLES BOARD
----------------------------------------------------------------
Nine Months 1996 Nine Months 1995
-------------------------------- -------------------------------
Income Income
Attributable Attributable
Avg. Shares to Common Avg. Shares to Common
of Common and Class B Stock of Common and Class B Stock
and Class B ------------------ and Class B -----------------
Stock Per Stock Per
Outstanding Total Share Outstanding Total Share
----------- --------- ------- ----------- --------- ------
(Mils.) (Mils.) (Mils.) (Mils.)
Preliminary Earnings Per Share Calculation 1,177 $3,191 $2.71 1,049 $3,283 $3.13
I. Primary Earnings Per Share
--------------------------
. Assuming exercise of options 57 33
. Assuming purchase of shares with proceeds
of options (41) (18)
. Assuming issuance of shares contingently issuable 2 2
. Uncommitted ESOP shares (6) (3)
----- -----
Net Common Stock Equivalents 12 14
----- -----
Primary Earnings Per Share Calculation 1,189 $3,191 $2.68a/ 1,063 $3,283 $3.09a/
===== ====== ===== ===== ====== =====
II. Fully Diluted Earnings Per Share
Primary Earnings Per Share Calculation 1,189 $3,191 $2.68 1,063 $3,283 $3.09
. Assuming conversion of convertible preferred
stock 20 20b/ 130 125b/
. Reduction in shares assumed to be purchased
with option proceeds c/ 0 3
----- ------ ----- ------
Fully Diluted Earnings Per Share Calculation 1,209 $3,211 $2.66 1,196 $3,408 $2.85
===== ====== ===== ===== ====== =====
- - - - - -
a/ The effect of common stock equivalents and/or other dilutive securities was
not material in this period; therefore, the amount presented on the income
statement is the Preliminary Earnings Per Share Calculation.
b/ Reflects the elimination of preferred dividends upon conversion.
c/ Incremental effect of dividing assumed option proceeds by the ending price,
rather than the average price, of Common Stock for each period when the
ending price exceeds the average price.
22