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 1997 Third 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 1,198 $1,112 $0.93 1,183 $670 $0.57
I. Primary Earnings Per Share
--------------------------
. Assuming exercise of options 58 49
. Assuming purchase of shares with proceeds of options (35) (34)
. Assuming issuance of shares contingently issuable 2 2
. Assuming exercise of subsidiary stock options
and conversion of subsidiary convertible debt (1) 0
. Uncommitted ESOP shares (2) (7)
----- ------ ----- ----
Net Common Stock Equivalents 23 (1) 10 0
----- ------ ----- ----
Primary Earnings Per Share Calculation 1,221 $1,111 $0.91 a/ 1,193 $670 $0.56 a/
===== ====== ===== ===== ==== =====
II. Fully Diluted Earnings Per Share
--------------------------------
Primary Earnings Per Share Calculation 1,221 $1,111 $0.91 1,193 $670 $0.56
. Assuming conversion of convertible preferred stock 9 3 b/ 16 5 b/
. Reduction in shares assumed to be purchased
with option proceeds c/ 2 0
. Effect of reduction in subsidiary shares assumed
to be purchased with option proceeds c/ 0 0
----- ------ ----- ----
Fully Diluted Earnings Per Share Calculation 1,232 $1,114 $0.90 1,209 $675 $0.56
===== ====== ===== ===== ==== =====
- - - - - -
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
----------------------------------------------------------------
Nine Months 1997 Nine Months 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 $5,083 $4.26 1,177 $3,191 $2.71
I. Primary Earnings Per Share
--------------------------
. Assuming exercise of options 59 57
. Assuming purchase of shares with proceeds of
options (40) (41)
. 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 (3) (6)
----- ------ ----- ------
Net Common Stock Equivalents 18 (2) 12 0
----- ------ ----- ------
Primary Earnings Per Share Calculation 1,211 $5,081 $4.20 a/ 1,189 $3,191 $2.68 a/
===== ====== ===== ===== ====== =====
II. Fully Diluted Earnings Per Share
--------------------------------
Primary Earnings Per Share Calculation 1,211 $5,081 $4.20 1,189 $3,191 $2.68
. Assuming conversion of convertible preferred
stock 10 10 b/ 20 20 b/
. Reduction in shares assumed to be purchased
with option proceeds c/ 7 0
. Effect of reduction in subsidiary shares assumed
to be purchased with option proceeds c/ 1 0
----- ------ ------ ------
Fully Diluted Earnings Per Share Calculation 1,228 $5,092 $4.15 1,209 $3,211 $2.66
===== ====== ===== ===== ====== =====
- - - - - -
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-