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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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1998 1997 1996 1995 1994
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EARNINGS
Income/(Loss) before income taxes and
cumulative effects of changes in accounting
principles................................. $25,396 $10,939 $ 6,793 $ 6,705 $ 8,789
Equity in net loss/(income) of affiliates plus
dividends from affiliates.................. 78 121 36 179 (182)
Adjusted fixed charges(a)..................... 9,215 10,911 10,801 10,556 8,122
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Earnings................................... $34,689 $21,971 $17,630 $17,440 $16,729
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COMBINED FIXED CHARGES AND PREFERRED STOCK
DIVIDENDS
Interest expense(b)........................... $ 8,919 $10,570 $10,464 $10,121 $ 7,787
Interest portion of rental expense(c)......... 245 309 300 396 265
Preferred stock dividend requirements of
majority owned subsidiaries and
trusts(d).................................. 55 55 55 199 160
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Fixed charges.............................. 9,219 10,934 10,819 10,716 8,212
Ford preferred stock dividend requirements(e)... 122 82 95 459 472
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Total combined fixed charges and preferred
stock dividends.......................... $ 9,341 $11,016 $10,914 $11,175 $ 8,684
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RATIOS
Ratio of earnings to fixed charges(f)......... 3.8 2.0 1.6 1.6 2.0
Ratio of earnings to combined fixed charges
and preferred stock dividends(f)........... 3.7 2.0 1.6 1.6 1.9
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(a) Fixed charges, as shown above, 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 Motor Company's
effective income tax rates. Beginning in the fourth quarter of 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 cover such dividend
requirements based on Ford Motor Company's effective income tax rates.
(f) Earnings used in calculation of the 1998 ratio include the $15,955 million
gain on the spin-off of The Associates. Excluding this gain, the ratio is
2.0.