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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
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1997 1996 1995 1994 1993
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EARNINGS
Income/(Loss) before income taxes and
cumulative effects of changes in
accounting principles............... $10,939 $ 6,793 $ 6,705 $ 8,789 $ 4,003
Equity in net loss/(income) of
affiliates plus dividends from
affiliates.......................... 121 36 179 (182) (98)
Adjusted fixed charges(a).............. 10,911 10,801 10,556 8,122 7,648
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Earnings............................ $21,971 $17,630 $17,440 $16,729 $11,553
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COMBINED FIXED CHARGES AND PREFERRED
STOCK DIVIDENDS
Interest expense(b).................... $10,570 $10,464 $10,121 $ 7,787 $ 7,351
Interest portion of rental
expense(c).......................... 309 300 396 265 266
Preferred stock dividend requirements
of majority owned subsidiaries and
trusts(d)........................... 55 55 199 160 115
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Fixed charges....................... 10,934 10,819 10,716 8,212 7,732
Ford preferred stock dividend
requirements(e)........................ 82 95 459 472 442
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Total combined fixed charges and
preferred stock dividends........... $11,016 $10,914 $11,175 $ 8,684 $ 8,174
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RATIOS
Ratio of earnings to fixed charges..... 2.0 1.6 1.6 2.0 1.5
Ratio of earnings to combined fixed
charges and preferred stock
dividends........................... 2.0 1.6 1.6 1.9 1.4
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(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 and trusts.
(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. (1995 - 1993),
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. Beginning in the fourth quarter 1995, includes
requirements related to company-obligated mandatorily redeemable preferred
securities of a subsidiary trust.
(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.