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EXHIBIT 12-B
FORD MOTOR COMPANY AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK
DIVIDENDS
(IN MILLIONS)
FOR THE YEARS ENDED DECEMBER 31
----------------------------------------------------------
1993 1992 1991 1990 1989
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EARNINGS
- - - - - - --------
INCOME/(LOSS) BEFORE INCOME TAXES
AND CUMULATIVE EFFECTS OF CHANGES
IN ACCOUNTING PRINCIPLES $ 4,003 $ (127) $(2,587) $ 1,495 $ 6,030
EQUITY IN NET (INCOME)/LOSS OF
AFFILIATES PLUS DIVIDENDS FROM
AFFILIATES (98) 26 69 171 (137)
ADJUSTED FIXED CHARGES A/ 7,648 8,113 9,360 9,690 9,032
------- ------- ------- ------- -------
EARNINGS $11,553 $ 8,012 $ 6,842 $11,356 $14,925
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COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
- - - - - - --------------------------
INTEREST EXPENSE B/ $ 7,351 $ 7,987 $ 9,326 $ 9,647 $ 8,624
-
INTEREST PORTION OF RENTAL
EXPENSE C/ 266 185 124 105 103
-
PREFERRED STOCK DIVIDEND
REQUIREMENTS
OF MAJORITY-OWNED
SUBSIDIARIES D/ 115 77 56 83 16
- ------- ------- ------- ------- -------
FIXED CHARGES 7,732 8,249 9,506 9,835 8,743
FORD PREFERRED STOCK DIVIDEND
REQUIREMENTS E/ 442 317 26 0 0
- ------- ------- ------- ------- -------
TOTAL COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS $ 8,174 $ 8,566 $ 9,532 $ 9,835 $ 8,743
------- ------- ------- ------- -------
------- ------- ------- ------- -------
RATIOS
- - - - - - ------
RATIO OF EARNINGS TO FIXED
CHARGES 1.5 F/ G/ 1.2 1.7
- -
RATIO OF EARNINGS TO
COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS 1.4 H/ I/ 1.2 1.7
- - - - - - - - - - -
A/ FIXED CHARGES, AS SHOWN BELOW, 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., 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, 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 INADEQUATE TO COVER FIXED CHARGES BY $237 MILLION.
G/ EARNINGS INADEQUATE TO COVER FIXED CHARGES BY $2,664 MILLION
H/ EARNINGS INADEQUATE TO COVER COMBINED FIXED CHARGES AND PREFERRED STOCK
DIVIDENDS BY $554 MILLION.
I/ EARNINGS INADEQUATE TO COVER COMBINED FIXED CHARGES AND PREFERRED STOCK
DIVIDENDS BY $2,690 MILLION.