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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)
First
Quarter For the Years Ended December 31
----------------------------------------------------------
1994 1993 1992 1991 1990 1989
------- -------- -------- -------- -------- --------
Earnings
- - --------
Income/(loss) before income taxes
and cumulative effects of changes
in accounting principles $ 1,766 $ 4,003 $ (127) $(2,587) $ 1,495 $ 6,030
Equity in net (income)/loss of
affiliates plus dividends from
affiliates 9 (98) 26 69 171 (137)
Adjusted fixed charges a/ 1,874 7,648 8,113 9,360 9,690 9,032
- ------- ------- ------- ------- ------- -------
Earnings $ 3,649 $11,553 $ 8,012 $ 6,842 $11,356 $14,925
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Combined Fixed Charges and
Preferred Stock Dividends
- - --------------------------
Interest expense b/ $ 1,784 $ 7,351 $ 7,987 $ 9,326 $ 9,647 $ 8,624
-
Interest portion of rental expense c/ 67 266 185 124 105 103
-
Preferred stock dividend requirements
of majority-owned subsidiaries d/ 42 115 77 56 83 16
- ------- ------- ------- ------- ------- -------
Fixed charges 1,893 7,732 8,249 9,506 9,835 8,743
Ford preferred stock dividend
requirements e/ 140 442 317 26 0 0
- ------- ------- ------- ------- ------- -------
Total combined fixed charges
and preferred stock dividends $ 2,033 $ 8,174 $ 8,566 $ 9,532 $ 9,835 $ 8,743
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Ratios
- - ------
Ratio of earnings to fixed charges 1.9 1.5 f/ g/ 1.2 1.7
- -
Ratio of earnings to combined fixed
charges and preferred stock dividends 1.8 1.4 h/ i/ 1.2 1.7
- -
- - - - - - -
a/ Fixed charges, as shown below, have been 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, have been
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 were inadequate to cover fixed charges by $237 million.
g/ Earnings were inadequate to cover fixed charges by $2,664 million
h/ Earnings were inadequate to cover combined fixed charges and preferred stock
dividends by $554 million.
i/ Earnings were inadequate to cover combined fixed charges and preferred
stock dividends by $2,690 million.
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