Ford Motor Company and Subsidiaries PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME For the Year Ended December 31, 1997 (Unaudited) (mils) Pro Forma Historical Adjustments Pro Forma Balances Associates Results ------------ ----------- ----------- AUTOMOTIVE Sales $ 122,935 $122,935 Costs and expenses Costs of sales 108,907 108,907 Selling, administrative, and other expenses 7,082 7,082 ------------ ---------- ----------- Total costs and expenses 115,989 - 115,989 Operating income 6,946 6,946 Interest income 1,116 1,116 Interest expense 788 788 ------------ ---------- ----------- Net interest income 328 - 328 Equity in net loss of affiliated companies (88) (88) Net expense from transactions with Financial Services (104) (104) ------------ ---------- ----------- Income before income taxes - Automotive 7,082 - 7,082 FINANCIAL SERVICES Revenues $ 30,692 $(8,279) $ 22,413 Costs and expenses Interest expense 9,712 (2,775) 6,937 Depreciation 7,645 (88) 7,557 Operating and other expenses 6,621 (2,288) 4,333 Provision for credit and insurance losses 3,230 (1,524) 1,706 ------------ ---------- ----------- Total costs and expenses 27,208 (6,675) 20,533 Net revenue from transactions with Automotive 104 - 104 Gain on sale of Common Stock of a subsidiary 269 - 269 ------------ ---------- ----------- Income before income taxes - Financial Services 3,857 (1,604) 2,253 ------------ ---------- ----------- TOTAL COMPANY Income before income taxes 10,939 (1,604) 9,335 Provision for income taxes 3,741 (608) 3,133 ------------ ---------- ----------- Income before minority interests 7,198 (996) 6,202 Minority interests in net income of subsidiaries 278 (200) 78 ------------ ---------- ----------- Net income $ 6,920 $ (796) $ 6,124 ============ ========== =========== Income attributable to Common and Class B Stock after preferred stock dividends $ 6,866 $ (796) $ 6,070 Average number of shares of Common and Class B Stock outstanding 1,195 - 1,195 AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK Basic income $ 5.75 $ (0.67) $ 5.08 Diluted income $ 5.62 $ (0.65) $ 4.97