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
----------------------------------------------------------------
Second Quarter 1997 Second Quarter 1996
---------------------------------- --------------------------------
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 1,193 $2,516 $2.11 1,178 $1,887 $1.60
I. Primary Earnings Per Share
. Assuming exercise of options 63 59
. Assuming purchase of shares with proceeds
of options (44) (39)
. Assuming issuance of shares contingently
issuable 2 2
. Assuming exercise of subsidiary stock
options and conversion of subsidiary
convertible debt (2) 0
. Uncommitted ESOP shares (4) (8)
----- ------ ----- ------
Net Common Stock Equivalents 17 (2) 14 0
----- ------ ----- ------
Primary Earnings Per Share Calculation 1,210 $2,514 $2.08 a/ 1,192 $1,887 $1.58 a/
===== ====== ===== ===== ====== =====
II. Fully Diluted Earnings Per Share
Primary Earnings Per Share Calculation 1,210 $2,514 $2.08 1,192 $1,887 $1.58
. Assuming conversion of convertible preferred
stock 10 3 b/ 19 6 b/
. Reduction in shares assumed to be purchased
with option proceeds c/ 3 0
. Effect of reduction in subsidiary shares
assumed to be purchased with option proceeds c/ 0 0
----- ------ ----- ------
Fully Diluted Earnings Per Share Calculation 1,223 $2,517 $2.06 1,211 $1,893 $1.56
===== ====== ===== ===== ====== =====
- - - - - -
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.
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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
----------------------------------------------------------------
First Half 1997 First Half 1996
------------------------------- --------------------------------
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 1,191 $3,971 $3.33 1,173 $2,521 $2.15
I. Primary Earnings Per Share
. Assuming exercise of options 60 57
. Assuming purchase of shares with proceeds of
options (43) (40)
. Assuming issuance of shares contingently
issuable 2 2
. Assuming exercise of subsidiary stock
options and conversion of subsidiary
convertible debt (2) 0
. Uncommitted ESOP shares (4) (5)
----- ------ ----- ------
Net Common Stock Equivalents 15 (2) 14 0
----- ------ ----- ------
Primary Earnings Per Share Calculation 1,206 $3,969 $3.29 a/ 1,187 $2,521 $2.12 a/
===== ====== ==== ===== ====== =====
II. Fully Diluted Earnings Per Share
Primary Earnings Per Share Calculation 1,206 $3,969 $3.29 1,187 $2,521 $2.12
. Assuming conversion of convertible preferred
stock 11 7 b/ 23 15 b/
. Reduction in shares assumed to be purchased
with option proceeds c/ 5 0
. Effect of reduction in subsidiary shares
assumed to be purchased with option proceeds c/ 0 0
----- ------ ----- ------
Fully Diluted Earnings Per Share Calculation 1,222 $3,976 $3.25 1,210 $2,536 $2.10
===== ====== ===== ===== ====== =====
- - - - - -
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.
-21-