EX-99 2 k99132exv99.htm NEWS RELEASE DATED OCTOBER 20, 2005 exv99
 

Exhibit 99
(FORD LOGO)
News
                                 
Contact:
  Media:   Equity Investment   Fixed Income   Shareholder Inquiries:
 
  Becky Sanch   Community:   Investment Community:   1.800.555.5259 or
 
  1.313.594.4410       Raj Modi   Rob Moeller   1.313.845.8540    
 
  bsanch@ford.com   1.313.323.8221       1.313.621.0881       stockinf@ford.com
 
          fordir@ford.com   fixedinc@ford.com        
FOR IMMEDIATE RELEASE
FORD REPORTS THIRD QUARTER 2005 FINANCIAL RESULTS

  Net loss of 15 cents per share, or $284 million.
  Loss from continuing operations of 10 cents per share, or $191 million, excluding special items.*
  Worldwide automotive pre-tax loss of $1.3 billion, excluding special items.
  Financial Services sector pre-tax profit of $1.1 billion, excluding special items.
  Full-year earnings results expected to be at the low end of the current guidance range of $1.00 to $1.25 per share from continuing operations, excluding special items.
DEARBORN, Mich., Oct. 20, 2005 — Ford Motor Company [NYSE: F] today reported a net loss of 15 cents per share, or $284 million, for the third quarter of 2005. This compares with net income of 15 cents per share, or $266 million, in the third quarter of 2004.
Ford’s third-quarter loss from continuing operations, excluding special items, was 10 cents per share, or $191 million, compared to a profit of 27 cents per share, or $515 million, in the same period last year.*
Ford’s total sales and revenue in the third quarter was $40.9 billion, compared to $39.1 billion in the year-ago period.
* Earnings per share from continuing operations excluding special items is calculated on a basis that includes pre-tax profit and provision for taxes and minority interest. See table following “Safe Harbor/Risk Factors” for the nature and amount of these special items and a reconciliation to GAAP.

 


 

“As our results indicate, we face many challenges in this competitive and difficult environment,” said Chairman and Chief Executive Officer Bill Ford. “We have demonstrated throughout the year that we will continue to take the actions necessary to return our core business to sustainable profitability. We understand the issues, our priorities, and have the right team in place to get the job done.”
Third-quarter actions included:
    Finalization of the Visteon agreement.
 
    An agreement to sell The Hertz Corporation.
 
    The introduction of new supply base consolidation initiative.
 
    Announcement of the Company’s innovation initiative, including a tenfold increase in annual hybrid vehicle production by 2010.
 
    Continued global personnel reductions.
 
    The launch of Ford Fusion, Mercury Milan and Lincoln Zephyr in North America.
 
    Premier Automotive Group reveal of Volvo C70 and Jaguar XK.
 
    Roll-out of Ford Focus in Asia Pacific.

The following discussion of the results of our Automotive sector and Automotive business units is on a basis that excludes special items. See table following “Safe Harbor/Risk Factors” for the nature and amount of these special items and a reconciliation to GAAP.
AUTOMOTIVE SECTOR
On a pre-tax basis, worldwide automotive losses in the third quarter were $1.3 billion, a decline of $732 million from a loss of $609 million during the same period a year ago.
Worldwide automotive sales for the third quarter rose to $34.7 billion from $32.8 billion in the same period last year. Worldwide vehicle-unit sales in the quarter were 1,531,000, up from 1,508,000 a year ago.
Total cash, including automotive cash, marketable securities, loaned securities and short-term Voluntary Employee Beneficiary Association (VEBA) assets on September 30, 2005 was $19.6 billion, down from $21.8 billion at the end of the second quarter.

2


 

THE AMERICAS
For the third quarter, the Americas reported a pre-tax loss of $1.1 billion, a decline of $648 million from a $422 million pre-tax loss in the same period a year ago.
North America: In the third quarter, Ford’s North American automotive operations reported a pre-tax loss of $1.2 billion, a decline of $685 million from a $481 million pre-tax loss a year ago. Lower dealer inventories, unfavorable vehicle mix, lower net pricing and higher warranty and material costs contributed to the deterioration. Higher industry volumes and market share were partial offsets. Included in the higher warranty costs was the favorable impact of the $240 million settlement reached with Bridgestone Firestone North American Tire, LLC regarding Firestone’s August 2000 voluntary safety recall and Ford’s May 2001 tire replacement program. Sales were $18.2 billion, up $59 million from the same period a year ago.
South America: Ford’s South American automotive operations reported a third-quarter pre-tax profit of $96 million, an increase of $37 million from a $59 million pre-tax profit a year ago. Higher volumes and net pricing in excess of higher commodity costs were the primary drivers of the improvement. Sales for the third quarter improved to $1.2 billion from $784 million in 2004.
FORD EUROPE AND PREMIER AUTOMOTIVE GROUP (PAG)
The 2005 third quarter combined pre-tax loss for Ford Europe and PAG automotive operations was $163 million, an improvement of $41 million compared with a loss of $204 million for the year-ago period.
Ford Europe: Ford Europe’s third-quarter pre-tax loss was $55 million, compared with a pre-tax loss of $33 million during the 2004 period. The decline was more than explained by higher material costs. These were partially offset by higher net pricing and higher subsidiary profits. Ford Europe’s sales in the third quarter were $6.4 billion, compared with $5.9 billion during the third quarter of 2004.
Premier Automotive Group: PAG reported a pre-tax loss of $108 million for the third quarter, compared with a pre-tax loss of $171 million for the same period in 2004. This is more than explained by the impact of new products, resulting in a richer mix and improved net pricing, primarily at Land Rover. Unfavorable currency exchange was a significant partial offset. Third-quarter sales for PAG were $6.8 billion, compared with $6.1 billion a year ago.

3


 

FORD ASIA-PACIFIC AND AFRICA/MAZDA
The 2005 third quarter combined pre-tax profit for Ford Asia-Pacific and Africa/Mazda was $133 million, an improvement of $85 million compared with a profit of $48 million for the year-ago period.
Ford Asia-Pacific and Africa: For the third quarter of 2005, Ford Asia-Pacific and Africa reported a pre-tax profit of $21 million, a decline of $14 million from a $35 million pre-tax profit a year ago. The decline was primarily explained by a higher mix of smaller cars, partially offset by improved net pricing. Sales were $1.9 billion, unchanged from third quarter 2004.
Mazda: During the third quarter of 2005, Ford’s share of Mazda profits and associated operations was $112 million, an improvement of $99 million from $13 million during the same period a year ago. The improvement primarily reflects gains on our investment in Mazda’s convertible bonds and improved operating results at Mazda.
OTHER AUTOMOTIVE
Third-quarter earnings included a loss of $241 million in other automotive financial results. This is a decline of $210 million from the same period last year, primarily reflecting the non-recurrence of tax-related interest income on refund claims received last year.
FORD MOTOR CREDIT COMPANY
Ford Motor Credit Company reported net income of $577 million in the third quarter of 2005, down $157 million from a year earlier. On a pre-tax basis from continuing operations, Ford Motor Credit earned $901 million in the third quarter, compared with $1.1 billion in the previous year. The decrease in earnings primarily reflected higher borrowing costs and the impact of lower receivable levels, partially offset by improved credit loss performance.
THE HERTZ CORP.
Hertz reported a third-quarter pre-tax profit of $262 million, an improvement of $13 million from the same period in 2004. The improvement reflected higher car and equipment rental volume, partially offset by lower pricing.

4


 

SPECIAL ITEMS*
In total, special items reduced earnings per share by 6 cents in the third quarter. Charges for Visteon-related actions, personnel reduction programs, and fuel cell technology were partially offset by a gain on the sale of a non-core business.
* See table following “Safe Harbor/Risk Factors” for the nature and amount of these special items and a reconciliation to GAAP.
OUTLOOK
Commenting on the Company’s financial outlook, Executive Vice President and Chief Financial Officer Don Leclair said, “We expect the fourth quarter to be another extremely competitive period. Our new products put us in an excellent position to compete in the marketplace. We will continue the turnaround in our operations in Europe, the investment in growth in Asia, and to address our issues in North America.”
The Company’s 2005 full-year earnings guidance is expected to be at the low end of the current guidance range of $1.00 to $1.25 per share. Full-year earnings-per-share guidance excludes the effect of special items and discontinued operations, which are presently estimated to include the following items:
TOTAL COMPANY 2005 ANTICIPATED FULL-YEAR SPECIAL ITEMS
AND DISCONTINUED OPERATIONS
         
Special Items   Full-Year EPS  
· Visteon-Related Charges
  $ (0.26) — (0.24 )
· Personnel Reduction Programs
    (0.21 )
· Fuel Cell Technology Charges
    (0.05 )
· Sale of Non-Core Businesses
    0.05  
· Tax Adjustments
    0.18  
· Hertz Sale
    0.33 — 0.42  
 
     
Total Special Items
  $ 0.04 — 0.15  
 
     
Discontinued Operations
    0.02  
Cumul. Change in Acctg. Principles (Asset Retirement Obligations)
  (TBD)

5


 

THIRD-QUARTER RESULTS CONFERENCE CALL — THURSDAY, OCT. 20
Executive Vice President and Chief Financial Officer Don Leclair will host a conference call beginning at 9:00 a.m. EDT to discuss third-quarter financial results.
At 11:00 a.m. EDT, Ford Vice President and Treasurer Ann Marie Petach, Ford Credit Vice Chairman and Chief Financial Officer David Cosper, and Ford Vice President and Controller Jim Gouin will host a conference call for fixed income analysts and investors.
The presentations (listen-only) and supporting materials also will be available on the Internet at www.shareholder.ford.com. Representatives of the news media and the investment community participating by teleconference will have the opportunity to ask questions following the presentations.

Access Information — Thurs., Oct. 20
Toll Free: 800-706-7741
International: 617-614-3471
 
Earnings: 9:00 a.m. EDT
Earnings Passcode: “Ford Earnings Call”
 
Fixed Income: 11:00 a.m. EDT
Fixed Income Passcode: “Ford Fixed Income Call”
Replays — Available through Thurs., Oct. 27
www.shareholder.ford.com
Toll Free: 888-286-8010
International: 617-801-6888
 
Passcodes:
Earnings: 29481628
Fixed Income: 55865600
Ford Motor Company, a global automotive industry leader based in Dearborn, Michigan, manufactures and distributes automobiles in 200 markets across six continents. With more than 324,000 employees worldwide, the Company’s core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Motor Credit Company and The Hertz Corporation.
- # # # -

6


 

Safe Harbor/Risk Factors
Statements included may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts and assumptions by our management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, including, without limitation:
    greater price competition resulting from currency fluctuations, industry overcapacity or other factors;
 
    a significant decline in industry sales, particularly in the U.S. or Europe, resulting from slowing economic growth, geo-political events or other factors;
 
    lower-than-anticipated market acceptance of new or existing products;
 
    economic distress of suppliers that may require us to provide financial support or take other measures to ensure supplies of materials;
 
    work stoppages at Ford or supplier facilities or other interruptions of supplies;
 
    the discovery of defects in vehicles resulting in delays in new model launches, recall campaigns or increased warranty costs;
 
    increased safety, emissions, fuel economy or other regulation resulting in higher costs and/or sales restrictions;
 
    unusual or significant litigation or governmental investigations arising out of alleged defects in our products or otherwise;
 
    worse-than-assumed economic and demographic experience for our postretirement benefit plans (e.g., investment returns, interest rates, health care cost trends, benefit improvements);
 
    currency or commodity price fluctuations, including rising steel prices;
 
    changes in interest rates;
 
    an increase in or acceleration of the market shift from truck sales or from sales of other more profitable vehicles in the U.S.;
 
    economic difficulties in any significant market;
 
    higher prices for or reduced availability of fuel;
 
    labor or other constraints on our ability to restructure our business;
 
    a change in our requirements or obligations under long-term supply arrangements pursuant to which we are obligated to purchase minimum quantities or a fixed percentage of output or pay minimum amounts;
 
    additional credit rating downgrades;
 
    inability to access debt or securitization markets around the world at competitive rates or in sufficient amounts;
 
    higher-than-expected credit losses;
 
    lower-than-anticipated residual values for leased vehicles and higher-than-expected lease return rates; and
 
    increased price competition in the rental car industry and/or a general decline in business or leisure travel due to terrorist attacks, acts of war, epidemic disease or measures taken by governments in response thereto that negatively affect the travel industry.
We cannot be certain that any expectation, forecast or assumption made by management in preparing these forward-looking statements will prove accurate, or that any projection will be realized. It is to be expected that there may be differences between projected and actual results. Our forward-looking statements speak only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.
***

7


 

TOTAL COMPANY 2005 THIRD QUARTER INCOME/LOSS FROM CONTINUING
OPERATIONS COMPARED WITH NET LOSS*
                 
            Memo:  
    Earnings     Pre-Tax  
    Per Share     Profit  
          (Mils.)  
Loss from Continuing Operations Excluding Special Items
  $ (0.10 )   $ (203 )
 
Special Items
               
- Visteon-Related Charges
  $ (0.08 )   $ (180 )
- Personnel Reduction Programs
    (0.06 )     (158 )
- Fuel Cell Technology Charges
    (0.03 )     (66 )
- Sale of Non-Core Businesses
    0.08       146  
- Hertz Sale**
    0.03       84  
 
           
Total Special Items
  $ (0.06 )   $ (174 )
 
           
 
               
Loss from Continuing Operations
  $ (0.16 )   $ (377 )
 
             
 
               
Discontinued Operations
    0.01          
 
             
Net Loss
  $ (0.15 )        
 
             
     
*
  Earnings per share from continuing operations is calculated on a basis that includes pre-tax profit, provision for taxes, and minority interest; additional information regarding the method of calculating earnings per share is available in the materials supporting the Oct. 20, 2005 conference calls at www.shareholder.ford.com.
**
  Represents effect of Hertz being held for sale in the third quarter of 2005.

8


 

FORD MOTOR COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
For the Periods Ended September 30, 2005 and 2004
(in millions, except per share amounts)
                                 
    Third Quarter     Nine Months  
    2005     2004     2005     2004  
    (unaudited)     (unaudited)  
Sales and revenues
                               
Automotive sales
  $ 34,675     $ 32,797     $ 112,692     $ 108,258  
Financial Services revenues
    6,181       6,324       17,848       18,459  
 
                       
Total sales and revenues
    40,856       39,121       130,540       126,717  
 
                               
Costs and expenses
                               
Cost of sales
    33,532       30,956       105,803       98,634  
Selling, administrative and other expenses
    5,983       5,694       18,200       17,433  
Interest expense
    1,976       1,867       5,659       5,436  
Provision for credit and insurance losses
    182       326       350       853  
 
                       
Total costs and expenses
    41,673       38,843       130,012       122,356  
 
                               
Automotive interest income and other non-operating income/(expense), net
    307       383       1,111       508  
Automotive equity in net income/(loss) of affiliated companies
    133       57       259       197  
 
                       
Income/(loss) before income taxes
    (377 )     718       1,898       5,066  
Provision for/(benefit from) income taxes
    (140 )     197       (127 )     1,277  
 
                       
Income/(loss) before minority interests
    (237 )     521       2,025       3,789  
Minority interests in net income/(loss) of subsidiaries
    54       62       196       219  
 
                       
Income/(loss) from continuing operations
    (291 )     459       1,829       3,570  
Income/(loss) from discontinued operations
    7       (193 )     45       (187 )
 
                       
Net income/(loss)
  $ (284 )   $ 266     $ 1,874     $ 3,383  
 
                       
 
                               
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
                               
Basic income/(loss)
                               
Income/(loss) from continuing operations
  $ (0.16 )   $ 0.25     $ 0.99     $ 1.95  
Income/(loss) from discontinued operations
    0.01       (0.10 )     0.03       (0.10 )
 
                       
Net income/(loss)
  $ (0.15 )   $ 0.15     $ 1.02     $ 1.85  
 
                       
Diluted income/(loss)
                               
Income/(loss) from continuing operations
  $ (0.16 )   $ 0.24     $ 0.93     $ 1.75  
Income/(loss) from discontinued operations
    0.01       (0.09 )     0.02       (0.09 )
 
                       
Net income/(loss)
  $ (0.15 )   $ 0.15     $ 0.95     $ 1.66  
 
                       
Cash dividends
  $ 0.10     $ 0.10     $ 0.30     $ 0.30  

Certain amounts in prior year's financial statements have been reclassified to conform with current year presentation.

9


 

FORD MOTOR COMPANY AND SUBSIDIARIES
SECTOR STATEMENT OF INCOME
For the Periods Ended September 30, 2005 and 2004
(in millions, except per share amounts)
                                 
    Third Quarter     Nine Months  
    2005     2004     2005     2004  
    (unaudited)             (unaudited)  
AUTOMOTIVE
                               
Sales
  $ 34,675     $ 32,797     $ 112,692     $ 108,258  
Costs and expenses
                               
Cost of sales
    33,532       30,956       105,803       98,634  
Selling, administrative and other expenses
    2,811       2,557       8,996       8,131  
 
                       
Total costs and expenses
    36,343       33,513       114,799       106,765  
 
                       
Operating income/(loss)
    (1,668 )     (716 )     (2,107 )     1,493  
 
                               
Interest expense
    371       397       960       1,094  
 
                               
Interest income and other non-operating income/(expense), net
    307       383       1,111       508  
Equity in net income/(loss) of affiliated companies
    133       57       259       197  
 
                       
Income/(loss) before income taxes — Automotive
    (1,599 )     (673 )     (1,697 )     1,104  
FINANCIAL SERVICES
                               
Revenues
    6,181       6,324       17,848       18,459  
Costs and expenses
                               
Interest expense
    1,605       1,470       4,699       4,342  
Depreciation
    1,537       1,568       4,591       4,956  
Operating and other expenses
    1,635       1,569       4,613       4,346  
Provision for credit and insurance losses
    182       326       350       853  
 
                       
Total costs and expenses
    4,959       4,933       14,253       14,497  
 
                       
Income/(loss) before income taxes — Financial Services
    1,222       1,391       3,595       3,962  
 
                       
 
                               
TOTAL COMPANY
                               
Income/(loss) before income taxes
    (377 )     718       1,898       5,066  
Provision for/(benefit from) income taxes
    (140 )     197       (127 )     1,277  
 
                       
Income/(loss) before minority interests
    (237 )     521       2,025       3,789  
Minority interests in net income/(loss) of subsidiaries
    54       62       196       219  
 
                       
Income/(loss) from continuing operations
    (291 )     459       1,829       3,570  
Income/(loss) from discontinued operations
    7       (193 )     45       (187 )
 
                       
Net income/(loss)
  $ (284 )   $ 266     $ 1,874     $ 3,383  
 
                       
 
                               
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
                               
Basic income/(loss)
                               
Income/(loss) from continuing operations
  $ (0.16 )   $ 0.25     $ 0.99     $ 1.95  
Income/(loss) from discontinued operations
    0.01       (0.10 )     0.03       (0.10 )
 
                       
Net income/(loss)
  $ (0.15 )   $ 0.15     $ 1.02     $ 1.85  
 
                       
Diluted income/(loss)
                               
Income/(loss) from continuing operations
  $ (0.16 )   $ 0.24     $ 0.93     $ 1.75  
Income/(loss) from discontinued operations
    0.01       (0.09 )     0.02       (0.09 )
 
                       
Net income/(loss)
  $ (0.15 )   $ 0.15     $ 0.95     $ 1.66  
 
                       
Cash dividends
  $ 0.10     $ 0.10     $ 0.30     $ 0.30  

Certain amounts in prior year's financial statements have been reclassified to conform with current year presentation.

10


 

FORD MOTOR COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions)
                 
    September 30,     December 31,  
    2005     2004  
    (unaudited)          
ASSETS
               
Cash and cash equivalents
  $ 28,200     $ 22,831  
Marketable securities
    8,614       8,946  
Loaned securities
    579       1,058  
Finance receivables, net
    91,774       109,466  
Other receivables, net
    5,268       5,969  
Net investment in operating leases
    23,007       22,652  
Retained interest in sold receivables
    4,415       9,166  
Inventories
    11,687       10,766  
Equity in net assets of affiliated companies
    2,594       2,835  
Net property
    41,887       44,549  
Deferred income taxes
    4,611       4,830  
Goodwill and other intangible assets
    6,072       6,394  
Assets of discontinued/held-for-sale operations
    15,535       16,346  
Other assets
    24,052       28,050  
 
           
Total assets
  $ 268,295     $ 293,858  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Payables
  $ 22,991     $ 21,991  
Accrued and other liabilities
    71,382       71,078  
Debt
    141,738       164,545  
Deferred income taxes
    4,617       7,845  
Liabilities of discontinued/held-for-sale operations
    12,522       11,477  
 
           
Total liabilities
    253,250       276,936  
Minority interests
    1,058       877  
Stockholders’ equity
               
Capital stock
               
Common Stock, par value $0.01 per share (1,837 million shares issued)
    18       18  
Class B Stock, par value $0.01 per share (71 million shares issued)
    1       1  
Capital in excess of par value of stock
    4,956       5,321  
Accumulated other comprehensive income/(loss)
    (2,454 )     1,258  
Treasury stock
    (1,031 )     (1,728 )
Earnings retained for use in business
    12,497       11,175  
 
           
Total stockholders’ equity
    13,987       16,045  
 
           
Total liabilities and stockholders’ equity
  $ 268,295     $ 293,858  
 
           

Certain amounts in prior year's financial statements have been reclassified to conform with current year presentation.

11


 

FORD MOTOR COMPANY AND SUBSIDIARIES
SECTOR BALANCE SHEET
(in millions)
                 
    September 30,     December 31,  
    2005     2004  
    (unaudited)          
ASSETS
               
Automotive
               
Cash and cash equivalents
  $ 9,096     $ 10,142  
Marketable securities
    7,900       8,291  
Loaned securities
    579       1,058  
 
           
Total cash, marketable and loaned securities
    17,575       19,491  
Receivables, net
    3,297       2,894  
Inventories
    11,687       10,766  
Deferred income taxes
    3,397       3,837  
Other current assets
    7,599       8,916  
 
           
Total current assets
    43,555       45,904  
Equity in net assets of affiliated companies
    1,748       1,907  
Net property
    41,545       42,904  
Deferred income taxes
    10,436       10,894  
Goodwill and other intangible assets
    6,054       6,374  
Assets of discontinued/held-for-sale operations
    22       188  
Other assets
    9,744       9,455  
 
           
Total Automotive assets
    113,104       117,626  
Financial Services
               
Cash and cash equivalents
    19,104       12,689  
Investments in securities
    714       655  
Finance receivables, net
    93,745       112,541  
Net investment in operating leases
    23,007       22,652  
Retained interest in sold receivables
    4,415       9,166  
Goodwill and other intangible assets
    18       20  
Assets of discontinued/held-for-sale operations
    15,513       16,158  
Other assets
    7,936       12,285  
Receivable from Automotive
    1,592       2,753  
 
           
Total Financial Services assets
    166,044       188,919  
Intersector elimination
    (1,592 )     (2,753 )
 
           
Total assets
  $ 277,556     $ 303,792  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Automotive
               
Trade payables
  $ 17,254     $ 16,026  
Other payables
    4,114       4,269  
Accrued and other liabilities
    27,497       29,700  
Deferred income taxes
    2,330       2,514  
Debt payable within one year
    981       977  
Current payable to Financial Services
    1,214       1,382  
 
           
Total current liabilities
    53,390       54,868  
Long-term debt
    17,255       17,458  
Other liabilities
    37,675       37,058  
Deferred income taxes
    1,862       3,042  
Liabilities of discontinued/held-for-sale operations
    10       46  
Payable to Financial Services
    378       1,371  
 
           
Total Automotive liabilities
    110,570       113,843  
Financial Services
               
Payables
    1,623       1,696  
Debt
    123,502       146,110  
Deferred income taxes
    9,686       9,709  
Other liabilities and deferred income
    6,210       6,834  
Liabilities of discontinued/held-for-sale operations
    12,512       11,431  
 
           
Total Financial Services liabilities
    153,533       175,780  
Minority interests
    1,058       877  
Stockholders’ equity
               
Capital stock
               
Common Stock, par value $0.01 per share (1,837 million shares issued)
    18       18  
Class B Stock, par value $0.01 per share (71 million shares issued)
    1       1  
Capital in excess of par value of stock
    4,956       5,321  
Accumulated other comprehensive income/(loss)
    (2,454 )     1,258  
Treasury stock
    (1,031 )     (1,728 )
Earnings retained for use in business
    12,497       11,175  
 
           
Total stockholders’ equity
    13,987       16,045  
Intersector elimination
    (1,592 )     (2,753 )
 
           
Total liabilities and stockholders’ equity
  $ 277,556     $ 303,792  
 
           

Certain amounts in prior year's financial statements have been reclassified to conform with current year presentation.

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FORD MOTOR COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the Periods Ended September 30, 2005 and 2004
(in millions)
                 
    Nine Months  
    2005     2004  
    (unaudited)  
Cash and cash equivalents at January 1
  $ 22,831     $ 22,598  
 
               
Cash flows from operating activities
               
Net cash flows from operating activities
    20,103       19,887  
 
               
Cash flows from investing activities
               
Capital expenditures
    (5,462 )     (4,896 )
Acquisitions of retail and other finance receivables and operating leases
    (42,026 )     (47,416 )
Collections of retail and other finance receivables and operating leases
    37,760       40,124  
Net acquisitions of daily rental vehicles
    (2,775 )     (2,739 )
Purchases of securities
    (4,743 )     (7,597 )
Sales and maturities of securities
    3,863       7,285  
Proceeds from sales of retail and other finance receivables and operating leases
    15,144       4,661  
Proceeds from sale of businesses
    2,245       537  
Cash paid for acquisitions
    (1,617 )     (30 )
Other
    576       (348 )
 
           
Net cash (used in)/provided by investing activities
    2,965       (10,419 )
 
               
Cash flows from financing activities
               
Cash dividends
    (552 )     (549 )
Net sales/(purchases) of Common Stock
    250       (127 )
Changes in short-term debt
    (6,177 )     8,700  
Proceeds from issuance of other debt
    20,237       12,544  
Principal payments on other debt
    (31,076 )     (34,490 )
Other
    (5 )     (49 )
 
           
Net cash (used in)/provided by financing activities
    (17,323 )     (13,971 )
 
               
Effect of exchange rate changes on cash
    (376 )     (6 )
 
           
 
               
Net increase/(decrease) in cash and cash equivalents
    5,369       (4,509 )
 
           
 
               
Cash and cash equivalents at September 30
  $ 28,200     $ 18,089  
 
           

Certain amounts in prior year's financial statements have been reclassified to conform with current year presentation.

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FORD MOTOR COMPANY AND SUBSIDIARIES
CONDENSED SECTOR STATEMENT OF CASH FLOWS
For the Periods Ended September 30, 2005 and 2004
(in millions)
                                 
    Nine Months 2005     Nine Months 2004  
            Financial             Financial  
    Automotive     Services     Automotive     Services  
    (unaudited)     (unaudited)  
 
                               
Cash and cash equivalents at January 1
  $ 10,142     $ 12,689     $ 6,855     $ 15,743  
 
                               
Cash flows from operating activities
                               
Net cash flows from operating activities
    4,535       7,757       5,045       11,867  
 
                               
Cash flows from investing activities
                               
Capital expenditures
    (5,109 )     (353 )     (4,597 )     (299 )
Acquisitions of retail and other finance receivables and operating leases
          (42,026 )           (47,416 )
Collections of retail and other finance receivables and operating leases.
          36,560             38,844  
Net (acquisitions)/collections of wholesale receivables
          5,272             298  
Net acquisitions of daily rental vehicles
          (2,775 )           (2,739 )
Purchases of securities
    (4,343 )     (400 )     (6,811 )     (786 )
Sales and maturities of securities
    3,239       624       6,635       650  
Proceeds from sales of retail and other finance receivables and operating leases
          15,144             4,661  
Proceeds from sales of wholesale receivables
          3,739             3,957  
Proceeds from sale of businesses
    204       2,041       125       412  
Cash paid for acquisitions
    (1,617 )           (30 )      
Net investing activity with Financial Services
    2,486             3,277        
Other
    451       125       10       (358 )
 
                       
Net cash (used in)/provided by investing activities
    (4,689 )     17,951       (1,391 )     (2,776 )
 
                               
Cash flows from financing activities
                               
Cash dividends
    (552 )           (549 )      
Net sales/(purchases) of Common Stock
    250             (127 )      
Changes in short-term debt
    (3 )     (6,174 )     (279 )     8,979  
Proceeds from issuance of other debt
    253       19,984       406       12,138  
Principal payments on other debt
    (682 )     (30,394 )     (2,112 )     (32,378 )
Net financing activity with Automotive
          (2,486 )           (3,277 )
Other
    (4 )     (1 )     (17 )     (32 )
 
                       
Net cash (used in)/provided by financing activities
    (738 )     (19,071 )     (2,678 )     (14,570 )
 
                               
Effect of exchange rate changes on cash
    14       (390 )     (9 )     3  
Net transactions with Automotive/Financial Services
    (168 )     168       92       (92 )
 
                       
 
                               
Net increase/(decrease) in cash and cash equivalents
    (1,046 )     6,415       1,059       (5,568 )
 
                       
 
                               
Cash and cash equivalents at September 30
  $ 9,096     $ 19,104     $ 7,914     $ 10,175  
 
                       

Certain amounts in prior year's financial statements have been reclassified to conform with current year presentation.

14