Ford Posts Third Quarter 2009 Net Income of $1 Billion; Cash Flow Turns Positive; North America Profitable(+)
 |
-- Reported net income of $997 million, or 29 cents per share, an
improvement of $1.2 billion from the third quarter of 2008. Pre-tax
operating profit totaled $1.1 billion, an improvement of $3.9 billion
from a year ago. It is Ford's first pre-tax operating profit since
the first quarter of 2008
-- Ford North America posted a pre-tax operating profit of $357 million,
its first profitable quarter since the first quarter of 2005
-- Reduced Automotive structural costs by $1 billion, bringing the total
reduction to $4.6 billion through the first nine months of 2009, and
exceeding the full-year target of $4 billion
-- A strong product lineup drove market share gains in North America,
South America and Europe as well as continued improvements in
transaction prices and margins
-- Ended the quarter with $23.8 billion of Automotive gross cash, up $2.8
billion from the end of second quarter 2009(++)
-- Achieved positive Automotive operating-related cash flow of $1.3
billion for the third quarter, a $2.3 billion improvement over the
second quarter
-- Ford Credit reported a pre-tax operating profit of $677 million, a
$516 million improvement from a year ago
-- Ford now expects to be solidly profitable in 2011, excluding special
items, with positive operating-related cash flow
DEARBORN - November 2, 2009: Ford Motor Company [NYSE: F] today reported net income of $997 million, or 29 cents per share, in the third quarter as strong new products, structural cost reductions and improved results at Ford Credit lifted the company's results despite continued weak global economic conditions. This is a $1.2 billion improvement compared with the same period last year.
Excluding special items, Ford posted pre-tax operating profits totaling $1.1 billion, an improvement of $3.9 billion from a year ago. This marks the company's first operating profit since the first quarter of 2008. On an after-tax basis, excluding special items, Ford posted an operating profit of $873 million in the third quarter, or 26 cents per share, compared with a loss of $3 billion, or $1.32 per share, a year ago.
Ford's North American operations posted a pre-tax operating profit of $357 million, its first quarterly profit since the first quarter of 2005. Ford South America, Ford Europe and Ford Asia Pacific Africa also posted pre-tax operating profits in the third quarter.
"Our third quarter results clearly show that Ford is making tremendous progress despite the prolonged slump in the global economy," said Ford President and CEO Alan Mulally. "Our solid product lineup is leading the way in all markets. While we still face a challenging road ahead, our One Ford transformation plan is working and our underlying business continues to grow stronger."
Ford's third quarter revenue was $30.9 billion, down $800 million from the same period a year ago. Automotive revenue is up $100 million from a year ago. This improvement was offset by a decrease in Ford Credit's revenue reflecting a decline in receivables.
Ford reduced its Automotive structural costs by $1 billion in the quarter, largely driven by lower manufacturing and engineering costs, which included benefits from improved productivity, personnel reduction actions primarily in North America and Europe, and progress on implementing its common global platforms and product development processes. Through the first nine months, Ford has achieved $4.6 billion in Automotive structural cost reductions, exceeding its full-year 2009 target of $4 billion.
Ford finished the third quarter with $23.8 billion in Automotive gross cash, compared with $21 billion at the end of the second quarter of 2009. Automotive operating-related cash flow was $1.3 billion positive during the third quarter of 2009, an improvement of $2.3 billion from the second quarter 2009. Automotive operating-related cash flow was $3.4 billion negative during the first nine months.
"The Ford team delivered another solid quarter of results with strong contributions from all our business regions," said Lewis Booth, Ford executive vice president and chief financial officer. "Positive cash flow, a stronger balance sheet and a third quarter operating profit are evidence that Ford is meeting the global economic challenges."
The following discussion of third quarter highlights and results are on a pre-tax basis and exclude special items. See tables following "Safe Harbor/Risk Factors" for the nature and amount of these special items and any necessary reconciliation to U.S. GAAP. Discussion of Automotive overall operating cost changes is at constant volume, mix, and exchange, and excludes special items; discussion of Automotive structural cost changes is at constant exchange and excludes special items.
THIRD QUARTER HIGHLIGHTS
-- Ford again increased year-over-year market share in North America,
South America, and Europe and continued to achieve improvements in
transaction prices and margins. Ford maintained market share in the
Asia Pacific Africa region and Volvo gained market share. Other sales
highlights:
-- In the U.S., third quarter market share increased 2.2 percentage
points compared to last year as the Ford, Lincoln and Mercury
brands all posted sales gains
-- Ford Europe's market share was 9.2 percent for the quarter, up 0.6
points from last year and the highest third-quarter level in 10
years. Market share was 10.1 percent in September, the highest
monthly share in eight years
-- Record growth in China continued as Ford third quarter sales
jumped 63 percent
-- At the end of the third quarter, worldwide sales of the new Ford
Fiesta reached 470,000 units since its launch last fall. The No.
2 best-selling car in Europe posted its highest September sales
since 1994. In September, Fiesta also had its best sales month
ever in China. Fiesta arrives in the U.S. market in 2010
-- Began selling the new Ford Taurus and Transit Connect in North
America. Taurus sales in September were up 60 percent from a year
ago
-- The Ford Focus and Ford Escape were among the top new vehicles
purchased in the U.S. government's "Cash for Clunkers" program
-- Ford's U.S. hybrid sales have risen 73 percent this year compared
to a 14 percent decline in U.S. hybrid industry sales. More than
60 percent of Ford Fusion hybrid sales have come from non-Ford
owners
-- Began production of the Ford Transit Connect small commercial van at
the new manufacturing plant in Craiova, Romania
-- Announced investment of $500 million at Ford India's Chennai assembly
plant to build the new Ford Figo, a small car targeted at the heart of
the Indian market, debuting in 2010
-- Announced a new $490 million assembly plant in Chongqing, China, which
will be completed by 2012, and will produce the Ford Focus for the
Chinese market
-- Ford, Lincoln and Mercury brand vehicles in the U.S. had the fewest
number of "things gone wrong" among all automakers, according to the
third quarter GQRS study of new vehicle quality
-- Received $886 million in loans from the U.S. Department of Energy for
development of more fuel-efficient vehicles. Ford has been approved
for up to $5.9 billion in loans in support of projected expenditures
through mid-2012
-- Raised $565 million in new equity as Ford completed its
previously-announced plan to issue up to $1 billion of equity
-- Ford Credit completed $10 billion in funding in the third quarter,
including $2.8 billion unsecured, and now has essentially completed
its full-year funding plan
-- The Ford Taurus and Lincoln MKT both earned a "Top Safety Pick" from
the Insurance Institute for Highway Safety. Ford Motor Company
continues to have more IIHS "Top Safety Pick" ratings than any other
automaker
-- Unveiled the all-new Ford C-MAX at the Frankfurt Motor Show. The
C-MAX and the Grand C-MAX will debut in Europe in 2010, and the Grand
C-MAX debuts in the U.S. in 2011. The new global C-car platform will
underpin up to 10 models and more than 2 million units annually by
2012
-- Announced that Ford's 1.6-liter and 2.0-liter four-cylinder EcoBoost
engines will make their debut in 2010 across Europe, North America,
and Australia
-- Unveiled the new Ford Figo to compete in India's small car segment
beginning in 2010
-- Launched the new Ford Fiesta in Taiwan and continued the successful
rollout of the Ford Focus and Ford Everest SUV in additional Asian
markets
-- Revealed the new 2011 Ford F-Series Super Duty and two new powertrains
developed by Ford - a 6.7-liter V8 diesel engine and a 6.2-liter V8
gasoline engine
-- Began selling the 2010 Ford F-150 SVT Raptor, an off-road performance
truck, which captured the "2009 Pickup Truck of Texas" award from the
Texas Auto Writers. The Ford F-150 won the overall "Truck of Texas"
award, the seventh straight year a Ford truck has earned the honor
AUTOMOTIVE SECTOR
Automotive Sector* Third Quarter First Nine Months
------------- -----------------
2009 O/(U) 2008 2009 O/(U) 2008
---- ---------- ---- ----------
Wholesales (000) 1,232 57 3,377 (891)
Revenue (Bils.) $27.9 $0.1 $73.3 $(23.6)
Pre-Tax Results (Mils.) $446 $3,385 $(2,493) $523
*excludes special items
-----------------------
For the third quarter of 2009, Ford's Automotive sector reported a
pre-tax operating profit of $446 million, compared with a pre-tax loss of
$2.9 billion a year ago. The improvement primarily reflects favorable net
pricing, structural cost reductions, lower material costs and improved
market share, offset partially by unfavorable exchange and lower industry
volumes.
Worldwide Automotive revenue in the third quarter was $27.9 billion, up
$100 million from a year ago. The increase is more than explained by
favorable net pricing and higher volumes, primarily in North America,
offset partially by unfavorable exchange. Total vehicle wholesales in the
third quarter were 1,232,000, compared with 1,175,000 units a year ago.
Automotive structural cost reductions in the third quarter totaled $1
billion, including $500 million in North America. Manufacturing and
engineering costs were $500 million lower, largely reflecting the continued
benefits of improved productivity, personnel reduction actions primarily in
North America and Europe, and progress on the implementation of Ford's
common global platforms and product development processes. Pension and
retiree health care costs were lower, reflecting the effect of the UAW
Retiree Health Care VEBA agreement. Overall, Ford reduced Automotive
structural costs by $4.6 billion during the first nine months.
Net pricing was $1.9 billion favorable, primarily explained by higher
U.S. net pricing, reflecting the success of new products, a continued
disciplined approach on incentives and selective top-line pricing.
North America: For the third quarter, Ford North America reported a
pre-tax operating profit of $357 million, compared with a loss of $2.6
billion a year ago. The improvement was primarily explained by favorable
net pricing, lower material costs, structural cost reductions, favorable
series mix and improved market share, offset partially by unfavorable
exchange and lower U.S. industry volume. Third quarter revenue was $13.7
billion, up from $10.8 billion a year ago.
South America: For the third quarter, Ford South America reported a
pre-tax operating profit of $247 million, compared with a profit of $480
million a year ago. The decrease is more than explained by unfavorable
exchange, primarily in Brazil and Argentina. Third quarter revenue was $2.1
billion, down from $2.7 billion a year ago.
Europe: For the third quarter, Ford Europe reported a pre-tax operating
profit of $193 million, compared with a profit of $69 million a year ago.
The improvement was more than explained by structural cost reductions,
lower material costs and favorable net pricing, offset partially by
unfavorable volume and mix and exchange. Third quarter revenue was $7.6
billion, down from $9.7 billion a year ago.
Asia Pacific Africa: For the third quarter, Ford Asia Pacific Africa
reported a pre-tax operating profit of $27 million, compared with a profit
of $4 million a year ago. The increase primarily reflects favorable net
pricing, China joint venture profits, and cost reductions, offset partially
by unfavorable exchange. Third quarter revenue was $1.5 billion, down from
$1.7 billion a year ago.
Financial Results Summary Third Quarter First Nine Months
------------- -----------------
2009 O/(U) 2009 O/(U)
2008 2008
---- ----- ---- ----
Wholesales (000)(+) 1,232 57 3,377 (891)
Revenue (Bils.) (+) $30.9 $(0.8) $82.9 $(26.2)
Operating Results (+)
--------------------------
Automotive Results (Mils.) $446 $3,385 $(2,493) $523
Financial Services (Mils.) 661 502 1,194 1,305
--- --- ----- -----
Pre-Tax Results (Mils.) $1,107 $3,887 $(1,299) $1,828
After-Tax Results (Mils.)(+++) $873 $3,882 $(1,557) $2,381
Earnings Per Share (+++) $0.26 $1.58 $(0.54) $1.22
Special Items Pre-Tax (Mils.) $108 $(2,099) $3,265 $9,484
-----------------------------
Net Income/(Loss) Attributable to Ford
--------------------------------------
After-Tax Results (Mils.) $997 $1,158 $1,831 $10,619
Earnings Per Share $0.29 $0.36 $0.61 $4.55
Automotive Gross Cash (Bils.)
(++) $23.8 $4.9 $23.8 $4.9
---------------------------------- ----- ---- ----- ----
Volvo: Volvo continues to be reported as an ongoing operation. The
effects of "held-for-sale" accounting-related adjustments are reported as
special items. For the third quarter, Volvo reported a pre-tax operating
loss of $135 million, compared with a loss of $458 million a year ago. The
improvement is more than explained by continued progress on cost
reductions, favorable exchange, and higher volume and mix. Third quarter
revenue was $3 billion, up from $2.9 billion a year ago. Also, as
announced last week, Ford confirmed Geely as the preferred bidder in the
ongoing discussions concerning the possible sale of Volvo Cars.
Other Automotive: Other Automotive, which consists primarily of interest
and financing-related costs, was a third quarter pre-tax loss of $243
million.
FINANCIAL SERVICES SECTOR
Financial Services Sector* Third Quarter First Nine Months
------------- -----------------
(in millions) 2009 O/(U) 2008 2009 O/(U) 2008
------------ ---- ---------- ---- ----------
Ford Credit Pre-Tax Results $677 $516 $1,287 $1,388
Other Financial Services (16) (14) (93) (83)
---- ---- ---- ----
Financial Services Pre-Tax Results $661 $502 $1,194 $1,305
==== ==== ====== ======
*excludes special items
-----------------------
For the third quarter, the Financial Services sector reported a pre-tax
operating profit of $661 million, compared with a profit of $159 million a
year ago.
Ford Motor Credit Company: For the third quarter, Ford Credit reported a
pre-tax operating profit of $677 million, compared with a pre-tax profit of
$161 million a year ago. The increase primarily reflected lower residual
losses due to higher auction values, and lower provisions for credit
losses, offset partially by lower volume.
Other Financial Services: For the third quarter, Other Financial
Services reported a pre-tax operating loss of $16 million in the third
quarter, compared with a loss of $2 million a year ago.
OUTLOOK
Despite the severe global downturn, Ford said it continues to make
progress on all four pillars of its plan:
-- Aggressively restructure to operate profitably at the current demand
and changing model mix
-- Accelerate the development of new products that customers want and
value
-- Finance the plan and improve the balance sheet
-- Work together effectively as one team, leveraging Ford's global assets
Ford said it remains on track to achieve or exceed all of its 2009
financial targets and almost all of its operational metrics. Ford will
also continue to pursue actions to improve its balance sheet.
Ford expects full-year 2009 U.S. industry sales will be about 10.6
million units, consistent with the guidance previously communicated by the
company. In Europe, Ford now expects that full-year industry sales will be
about 15.7 million units, which is higher than its previous guidance.
Ford expects fourth quarter 2009 production to be up compared with
year-ago levels and third quarter 2009 production. This increase is to
return to planned dealer stock levels and match production with market
demand for Ford products.
Ford now expects full-year Automotive structural cost reductions of
about $5 billion, exceeding its full-year 2009 target. These costs were
reduced by $4.6 billion through the first nine months. Going forward, Ford
expects structural costs to be relatively stable as the company has largely
completed its significant restructuring actions over the past four
years.
The company said it expects full-year U.S. and Europe market share to
remain at about the same levels achieved during the first nine months.
Ford expects Automotive operating-related cash flow to be positive in
the fourth quarter, based on the company's present planning
assumptions.
Ford now expects capital spending of about $5 billion, or slightly less.
Capital expenditures through the first nine months were $3.4 billion;
higher projected fourth quarter spending reflects the timing of Ford's
product launches as the company maintains its product plans.
Ford Credit expects to be profitable in the fourth quarter and for the
full-year 2009. Next year, Ford Credit expects reduced profits based on
lower average receivables and the non-recurrence of favorable 2009
factors.
Based on its recent performance and present planning assumptions, Ford
is changing its full-year 2011 guidance for total company and North
American Automotive operations from being "breakeven or better" to "solidly
profitable" on a pre-tax basis excluding special items, with positive
Automotive operating-related cash flow.
While the company has confidence that the global economy will be
improving by 2011, the near-term growth outlook remains rather uncertain.
Looking at 2010, there is a high likelihood of a substantial decrease in
European industry volume as scrappage programs expire. This decrease could
more than offset U.S. sales volumes, which may improve somewhat from this
past quarter's levels.
Ford expects to know more about the state of the global economic
recovery and its impact on 2010 auto industry volumes in the coming months.
Early next year, Ford will provide guidance on its 2010 planning
assumptions and operational metrics when the company releases its full-year
2009 results.
"The third quarter is one the entire Ford extended team can be proud of
because it proves that our product-led transformation is working," Mulally
said. "Leading indicators are now showing signs of recovery in all of our
major markets, however, consumer confidence and labor market conditions
remain a concern.
"Despite the continued economic headwinds, we remain confident that we
have the right plan and are taking the right actions to transfer Ford into
a lean company that delivers profitability growth for all our
stakeholders," Mulally added.
Ford's 2009 planning assumptions regarding the industry and operating
metrics include the following:
Planning Assumptions Full Year Plan Full Year Memo: First
Outlook Nine Months
-------------------- -------------- ------------- -----------
Industry Volume
(SAAR)**:
-U.S. (million
units) 10.5 - 12.5 About 10.6 10.5
-Europe (million
units)*** 12.5 - 13.5 About 15.7 15.7
Operational Metrics
Compared with 2008:
Quality:
-- U.S. Improve On track Improved
-- International Improve Mixed Mixed
--Automotive
Structural Improve by about $4 Improve by about Improved by
Costs**** Billion $5 Billion $4.6 Billion
-- U.S. Total Market
Share (Ford and LM) Stabilize Improve 15.0%
Share of Retail
Market Stabilize Improve 12.9%
-- Europe Market
Share *** Equal / Improve Improve 9.2%
--Auto. Negative but On track $(3.4)
Operating-Related Significant Billion
Cash Flow***** Improvement
Absolute Amount:
--Capital Spending $5 Billion to $5.5 About $3.4
Billion $5 Billion Billion
FORD IS ON TRACK TO BE SOLIDLY PROFITABLE IN 2011
WITH POSITIVE OPERATING-RELATED CASH FLOW*
* Pre-tax profits excluding special items
** Includes medium and heavy trucks
*** European 19 markets Ford tracks
**** Cost changes are measured at constant exchange, and
exclude special items and discontinued operations. In
addition, costs that vary directly with volume, such as
material, freight and warranty costs are measured at constant
volume and mix
***** See tables at end for reconciliation to GAAP
---------------------------
Ford's production volumes are shown below:
Production Volumes Actual Forecast
------------------ ------ --------
Third Quarter 2009 Fourth Quarter 2009
------------------ -------------------
O/(U) O/(U)
Units 2008 Units 2008
----- ---- ----- ----
(000) (000) (000) (000)
Ford North America 490 72 570 141
Ford Europe 385 (9) 456 91
Volvo 77 5 95 27
----- -- -- -- --
THIRD QUARTER & FIRST NINE MONTHS 2009 NET INCOME/(LOSS) COMPARED WITH
2008
Third Quarter First Nine Months
------------- -----------------
2008 2009 2008 2009
---- ---- ---- ----
Revenue (Bils.)
---------------
Revenue (Excluding Special
Items) $31.7 $30.9 $109.1 $82.9
Special Items* - - 7.0 -
-- -- --- --
Revenue $31.7 $30.9 $116.1 $82.9
===== ===== ====== =====
Income (Mils.)
--------------
Pre-Tax Results from
Continuing Operations
(Excluding Special Items) $(2,780) $1,107 $(3,127) $(1,299)
Special Items* 2,207 108 (6,219) 3,265
----- --- ------- -----
Pre-Tax Income/(Loss) from
Continuing Operations $(573) $1,215 $(9,346) $1,966
(Provision for)/Benefit from
Income Taxes 463 (139) 811 40
--- ----- --- --
Income/(Loss) from Continuing
Operations $(110) $1,076 $(8,535) $2,006
Income/(Loss) from
Discontinued Operations - - 9 5
-- -- -- --
Net Income/(Loss) $(110) $1,076 $(8,526) $2,011
Less: Income/(Loss)
attributable to
non-controlling interests 51 79 262 180
-- -- --- ---
Net Income/(Loss)
attributable to Ford $(161) $997 $(8,788) $1,831
===== ==== ======= ======
* Special items detailed in Special Items tables below.
THIRD QUARTER & FIRST NINE MONTHS 2009 INCOME/(LOSS) FROM CONTINUING
OPERATIONS COMPARED WITH 2008
Third Quarter First Nine Months
------------- -----------------
(in millions) 2008 2009 2008 2009
---- ---- ---- ----
Pre-Tax Results from
Continuing Operations
(Excluding Special Items) $(2,780) $1,107 $(3,127) $(1,299)
(Income)/Loss Attributable to
Non-Controlling Interests (51) (79) (262) (180)
(Provision for)/Benefit from
Income Taxes applied to
Pre-Tax Results from
Continuing Operations
(Excluding Special Items) (178) (155) (549) (78)
----- ----- ----- ----
After-Tax Result (Excluding
Special Items) $(3,009) $873 $(3,938) $(1,557)
Pre-Tax Special Items* $2,207 $108 $(6,219) $3,265
(Provision for)/Benefit from
Income Taxes on Special Items 641 16 1,360 118
--- -- ----- ---
Income/(Loss) from Continuing
Operations Attributable to
Ford $(161) $997 $(8,797) $1,826
===== ==== ======= ======
(Provision for)/Benefit from
Income Taxes applied to
Pre-Tax Results from
Continuing Operations
(Excluding Special Items) $(178) $(155) $(549) $(78)
(Provision for)/Benefit from
Income Taxes on Special Items 641 16 1,360 118
--- -- ----- ---
(Provision for)/Benefit from
Income Taxes $463 $(139) $811 $40
==== ----- ==== ===
* Special items detailed in Special Items tables below.
THIRD QUARTER SPECIAL ITEMS Income/(Loss)
(in millions) -------------
Personnel and Dealer-Related Items: 2008 2009
----------------------------------- ---- ----
Automotive Sector
Ford North America
Retiree health care and related charges $2,569 $(120)
Personnel-reduction actions (197) (23)
U.S. dealer actions (38) (13)
Job Security Benefits 320 22
--- ---
Total Ford North America 2,654 (134)
Ford South America
Personnel-reduction actions - (6)
Ford Europe
Personnel-reduction actions (40) (16)
Ford Asia Pacific Africa
Personnel-reduction actions (28) (6)
Volvo
Personnel-reduction actions (15) (3)
U.S. dealer actions (11) -
---- ---
Total Volvo (26) (3)
Other Automotive
Returns on assets held in the Temporary Asset
Account ("TAA") (250) 93
----- ---
Total Personnel and Dealer-Related Items -
Automotive sector 2,310 (72)
Other Items:
------------
Automotive Sector
Ford North America
Accelerated depreciation related to AutoAlliance
International, Inc. ("AAI") acquisition of
leased facility (82) -
Gain/(Loss) on sale of Automotive Components
Holding , LLC ("ACH") plants (19) -
---- ---
Total Ford North America (101) -
Volvo
Held-for-sale cessation of depreciation and
related charges - 163
Other Automotive
Gain on debt securities exchanged for equity 35 -
Net gains on debt reduction actions - 8
- -
Total Other Automotive 35 8
Jaguar Land Rover
Sale-related/Other (37) -
---- ---
Total Other Items - Automotive sector (103) 171
Financial Services Sector
DFO Partnership - gain on sale - 9
--- ---
Total $2,207 $108
====== ====
Memo:
Special Items Impact on Earnings Per Share* $1.25 $0.03
===== =====
* Earnings per share for special items is calculated on a basis that
includes pre-tax profit, provision for taxes, less income attributable to
non-controlling interests and the effect of discontinued operations;
additional information regarding the method of calculating earnings per
share is available in the materials supporting the November 2, 2009
conference calls at www.shareholder.ford.com.
FIRST NINE MONTHS SPECIAL ITEMS Income/(Loss)
(in millions) -------------
Personnel and Dealer-Related Items: 2008 2009
----------------------------------- ---- ----
Automotive Sector
Ford North America
Retiree health care and related charges $2,680 $(408)
Personnel-reduction actions (644) (292)
U.S. dealer actions (primarily dealership
impairments) (185) (105)
Job Security Benefits 262 336
--- ---
Total Ford North America 2,113 (469)
Ford South America
Personnel-reduction actions - (19)
Ford Europe
Personnel-reduction actions/Other (54) (160)
Ford Asia Pacific Africa
Personnel-reduction actions (40) (14)
Volvo
Personnel-reduction actions (38) (12)
U.S. dealer actions (20) (1)
---- ---
Total Volvo (58) (13)
Other Automotive
Returns on assets held in the TAA (250) 96
Mazda
Impairment of dealer network goodwill (214) -
----- ---
Total Personnel and Dealer-Related Items -
Automotive sector 1,497 (579)
Other Items:
------------
Automotive Sector
Ford North America
Fixed asset impairment charges (5,300) -
Gain/(Loss) on sale of ACH plants (324) -
Accelerated depreciation related to AAI
acquisition of leased facility (82) -
Ballard restructuring/Other (70) -
---- ---
Total Ford North America (5,776) -
Ford Europe
Investment impairment and related charges - (100)
Volvo
Held-for-sale impairment - (650)
Held-for-sale cessation of depreciation and
related charges - 290
--- ---
Total Volvo - (360)
Other Automotive
Liquidation of foreign subsidiary - foreign
currency translation impact - (281)
Gain on debt securities exchanged for equity 108 -
Net gains on debt reduction actions - 4,663
- -----
Total Other Automotive 108 4,382
Jaguar Land Rover
Sale-related/Other* 38 3
--- ---
Total Other Items - Automotive sector (5,630) 3,925
Financial Services Sector
DFO Partnership impairment - (141)
Ford Credit net operating lease impairment
charge (2,086) -
DFO Partnership - gain on sale - 9
Gain on purchase of Ford Holdings debt
securities - 51
--- ---
Total Other Items - Financial Services
sector (2,086) (81)
------- ----
Total $(6,219) $3,265
======= ======
Memo:
Special Items Impact on Earnings Per Share** $(2.17) $1.15
====== =====
* Jaguar Land Rover's revenue of $7 billion and wholesales of 125,000
units were treated as special items in the first nine months of 2008.
** Earnings per share for special items is calculated on a basis that
includes pre-tax profit, provision for taxes, less income attributable to
non-controlling interests and the effect of discontinued operations;
additional information regarding the method of calculating earnings per
share is available in the materials supporting the November 2, 2009
conference calls at www.shareholder.ford.com.
U.S. GAAP RECONCILIATION OF AUTOMOTIVE GROSS CASH
(in billions) Sep 30,
2009
B/(W) Memo:
Dec 31, Sep 30, Dec 31, Memo: Sep June 30,
2008 2009 2008 30, 2008 2009
------- ------- ------- --------- -----
Cash and Cash Equivalents $6.4 $10.1 $3.7 $10.6 $11.9
Marketable Securities 9.3 14.6 5.3 11.5 9.7
Loaned Securities - - - - -
- - - - -
Total Cash/Marketable &
Loaned Securities $15.7 $24.7 $9.0 $22.1 $21.6
Securities-In-Transit * - (0.2) (0.2) (0.7) (0.2)
UAW-Ford TAA/Other (2.3) (0.7) 1.6 (2.5) (0.4)
----- ----- --- ----- -----
Gross Cash $13.4 $23.8 $10.4 $18.9 $21.0
===== ===== ===== ===== =====
* The purchase or sale of marketable securities for which the cash
settlement was not made by period-end and for which there was a payable or
receivable recorded on the balance sheet at period-end.
U.S. GAAP RECONCILIATION OF AUTOMOTIVE OPERATING-RELATED CASH FLOWS*
(in billions) 2009
----
First
Third O/(U) Nine O/(U)
Quarter 2008 Months 2008
--------- ----- -------- -----
Cash Flows from Operating
Activities of Continuing
Operations** $3.0 $8.6 $0.8 $8.0
Items Included in
Operating-Related Cash Flows:
Capital Expenditures (1.0) 0.8 (3.4) 1.3
Net Transactions Between
Automotive and Financial
Services Sectors (0.4) (0.3) (1.3) 0.1
Net Cash Flows from
Non-Designated Derivatives (0.1) (0.4) (0.1) (1.2)
Items Not Included in
Operating-Related Cash Flows:
Cash Impact of Job Security
Benefits & Pers. Reduction
Program 0.2 - 0.7 0.2
Pension Contributions 0.1 - 0.8 (0.1)
Tax Refunds and Tax Payments
from Affiliates (0.2) (0.2) (0.5) 0.4
Other** (0.3) 0.5 (0.4) 0.2
----- --- ----- ---
Operating-Related Cash Flows $1.3 $9.0 $(3.4) $8.9
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* Except where noted (see below) 2008 data excludes Jaguar Land Rover
** 2008 includes Jaguar Land Rover
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