Ford Earns 2003 Net Income of $495 Million, or 27 Cents Per Share
- Full-year net income of $495 million, or 27 cents per share.
- Full-year income from continuing operations, excluding special items, more than doubled to $1.14 per share compared with a year ago, exceeding the company's full-year guidance of $1.05 - $1.10 per share.
- Achieved pre-tax profitability in the automotive sector, excluding special items.
- Posted full-year record Ford Credit pre-tax profit of $3.0 billion.
- Fourth-quarter income from continuing operations of 31 cents per share, excluding special items, up 20 cents per share from a year ago.
- Significant fourth-quarter improvements in operating results for Premier Automotive Group, South America, Ford Europe and Asia Pacific.
DEARBORN, Mich., Jan. 22 -- Ford Motor Company today reported full-year 2003 net income of $495 million, or 27 cents per share. This compares with a net loss of $980 million, or 55 cents per share, for full-year 2002.
Excluding special items, Ford's full-year earnings per share from continuing operations were $1.14. This result exceeded the full-year guidance of $1.05 to $1.10 per share and the comparable year-ago result of 56 cents per share.
"We have dramatically improved our profitability, beaten Wall Street's expectations for eight consecutive quarters, and moved closer to achieving our mid-decade goals," said Chairman and Chief Executive Officer Bill Ford. "As this month's North American International Auto Show demonstrated, we have the right products and strategy to achieve our 2004 milestones."
The following table reconciles the impact of special items, changes in accounting principle and discontinued operations for fourth-quarter and full-year earnings.
2003
Fourth Quarter Full Year
EPS EPS
Income from Continuing Operations
Excluding Special Items $0.31 $1.14
Special Items
Europe Restructuring $ (0.14) $(0.16)
Visteon Agreement (0.47) (0.47)
Non-Core Businesses 0.02 0.02
Dilution Effect of Special Items (0.07) (0.03)
Income from Continuing Operations $ (0.35) $0.50
Cumulative Effect of Change in
Accounting Principle 0 (0.14)
Discontinued Operations (0.08) (0.09)
Net Income $(0.43) $0.27
Including special items, Ford's 2003 pre-tax profit totaled $1.4 billion, an increase from $951 million in 2002. Ford's 2003 pre-tax profit, excluding special items, increased to $3.4 billion from $1.9 billion in 2002. Following are 2003 special items, presented on a pre-tax basis:
Third Quarter Fourth Quarter Full Year
(Mils.) (Mils.) (Mils.)
Europe Restructuring $(56) $ (457) $(513)
Visteon Agreement -- (1,597) (1,597)
Non-Core Businesses -- 49 49
Total Special Items $(56) $(2,005) $(2,061)
Total sales and revenue for full-year 2003 was $164.2 billion, up from $162.3 billion a year ago. Vehicle unit sales were 6,720,000, down slightly from 6,973,000 in 2002.
Ford's 2003 accomplishments included:
-- Better-than-breakeven worldwide automotive profits.*
-- Cost reductions of $3.2 billion.**
-- Successful vehicle launches, including the Ford Focus C-MAX in Europe;
Jaguar XJ and Volvo S40 worldwide; and the Ford F-150, Ford Freestar
and Mercury Monterey in North America.
-- A year-over-year increase in North America per unit revenue of $724,
on a comparable basis.
-- A record pre-tax profit of $3.0 billion at Ford Credit.
-- Strong automotive cash position with $25.9 billion of cash, marketable
and loaned securities and short-term VEBA.
-- Agreements with the United Auto Workers and Visteon Corp.
-- Ford Division's 17th consecutive year as the best-selling vehicle
brand in America.
-- More than 20 awards honoring the all-new F-150, including Truck of the
-- Year awards from the North American Auto Writers, Motor Trend and
Texas Auto Writers Association.
* Pre-tax profits, excluding special items.
** At constant volume, mix and exchange; excluding special items.
Looking ahead, Ford Motor Company will introduce 40 new products worldwide in 2004. Key introductions include Ford Freestyle, Five Hundred and Mustang; Mercury Montego; Jaguar S-TYPE; Aston Martin DB9 coupe; Volvo V50; and the world's first, no-compromise, full hybrid, the Ford Escape Hybrid.
FOURTH QUARTER
Ford reported a net loss of $793 million, or 43 cents per share, for the fourth quarter of 2003. This compares with a net loss of $130 million, or 7 cents per share, for the fourth quarter of 2002.
In the fourth quarter, Ford earned 31 cents per share from continuing operations, excluding special items, up from a comparable year-ago result of 11 cents per share.
Total sales and revenue in the fourth quarter was $46 billion, up from $41.5 billion a year ago. Worldwide vehicle unit sales rose in the fourth quarter to 1,880,000 from 1,789,000 a year ago.
AUTOMOTIVE SECTOR
The following is a discussion of fourth-quarter and full-year pre-tax results by our automotive operations excluding special items. Reconciliation to pre-tax U.S. GAAP results follows at the end of this document.
For the full year, Ford's worldwide automotive sector earned a pre-tax profit of $104 million in 2003, a $357 million improvement from a loss of $253 million a year ago.
For the fourth quarter, Ford's worldwide automotive operations reported a pre-tax loss of $4 million, a $236 million improvement from a year-ago loss of $240 million.
Automotive revenue for full-year 2003 was $138.4 billion, up three percent from $134.3 billion a year ago. Automotive revenue for the fourth quarter was $39.8 billion, up from $34.6 billion a year ago.
Automotive gross cash at Dec. 31, 2003 totaled $25.9 billion of cash, marketable and loaned securities and short-term VEBA.
THE AMERICAS
The Americas, which includes the company's automotive operations in North and South America, reported a 2003 pre-tax profit of $1.6 billion, down $236 million from 2002.
For the fourth quarter, the Americas reported a pre-tax profit of $193 million, compared with a pre-tax profit of $417 million in 2002.
North America: Ford's North America operations posted a full-year 2003 pre-tax profit of $1.8 billion, compared with $2.5 billion last year. The decline was primarily due to the absence of an increase in dealer stocks in 2002, unfavorable net pricing, lower market share and unfavorable exchange rates, partially offset by cost savings and favorable mix. Full-year revenue totaled $83.6 billion, down from $87.1 billion a year ago.
The North America automotive pre-tax profit for the fourth quarter was $197 million, down from $513 million a year ago. The decrease primarily reflected higher costs related to the introduction of new vehicles, higher pension and healthcare expenses, and unfavorable exchange rates, partially offset by cost reductions in other areas, improved mix and favorable net pricing. Revenue increased to $22.8 billion from $21.2 billion in the year-ago period.
South America: Ford's South America operations reported a 2003 pre-tax loss of $130 million, a $492 million improvement from 2002. The improvement reflected the non-recurrence of currency devaluations in 2002, favorable mix, higher market share, improved net pricing and lower costs. Revenue was $1.9 billion, up $328 million from 2002.
For the fourth quarter, South America's automotive pre-tax loss totaled $4 million, a $92 million improvement from 2002. The improvement primarily reflected lower costs, favorable mix, higher market share and improved net pricing. Revenue increased to $623 million, compared to $335 million in the 2002 fourth quarter.
INTERNATIONAL AUTOMOTIVE
International automotive operations reported a full-year pre-tax loss of $905 million, a $575 million improvement from a 2002 loss of $1,480 million.
For the fourth quarter, International Automotive pre-tax profit totaled $172 million, an improvement of $624 million from a year-ago loss of $452 million.
Europe: Ford Europe's automotive operations reported a pre-tax loss of $1.1 billion for 2003, compared with a loss of $549 million a year ago. The decline primarily reflected unfavorable net pricing, adverse mix, unfavorable exchange rates, and a reduction in dealer stocks, partially offset by cost reductions. Full-year revenue totaled $22.2 billion, up from $18.9 billion a year ago.
For the fourth quarter, Ford Europe reported a pre-tax profit of $60 million, an improvement of $77 million from a loss of $17 million a year ago. The improvement primarily reflected lower costs, improved results at Otosan, a joint venture in Turkey, and higher dealer stocks. These were offset by lower pricing, lower market share and unfavorable exchange. Fourth quarter revenue totaled $7.4 billion, an improvement of $1.8 billion over the year-ago period.
Ford Asia Pacific: Ford's Asia Pacific automotive operations posted a loss of $25 million, an improvement of $151 million from a loss of $176 million in 2002. The improvement primarily reflected favorable exchange rates, improved net pricing, higher industry volumes in the region and improved market share. Revenue increased to $5.8 billion from $4.4 billion in 2002. Asia Pacific's fourth-quarter pre-tax profit totaled $26 million, a $61 million improvement from a loss of $35 million in the year-ago period. The increase in profitability is primarily explained by favorable exchange rates and lower costs, partially offset by unfavorable net pricing. Revenue increased to $1.5 billion, compared with $1.3 billion in the 2002 fourth quarter.
Premier Automotive Group: PAG reported a pre-tax profit of $164 million for 2003, compared with a loss of $740 million last year. The improvement of $904 million primarily reflected cost reductions and improved mix, partially offset by unfavorable exchange rates. Revenue increased to $24.9 billion from $21.3 billion a year ago.
PAG's fourth-quarter pre-tax profit totaled $108 million, a $496 million improvement from a year-earlier loss of $388 million. The improvement primarily reflected cost efficiencies and favorable volume and mix, partially offset by unfavorable exchange rates. Revenue increased to $7.5 billion from $6 billion in the year-ago period.
FORD CREDIT
Ford Motor Credit Company reported record net income of $1.8 billion in 2003, up $583 million from earnings of $1.2 billion a year earlier. On a pre- tax basis, Ford Credit earned $3.0 billion in 2003 compared with $2.0 billion in 2002. The increase in earnings primarily reflected a lower provision for credit losses and the favorable market valuation of derivative instruments and associated exposures, partially offset by the impact of lower average net receivables.
In the fourth quarter of 2003, Ford Credit's net income was $470 million, up $116 million from $354 million in the same period a year earlier. On a pre-tax basis, Ford Credit earned $839 million in the fourth quarter of 2003 compared with $594 million in 2002. The increase in earnings primarily reflected a lower provision for credit losses, the favorable market valuation of derivative instruments and associated exposures, offset partially by lower sales of receivables.
HERTZ
Hertz reported a full-year 2003 pre-tax profit of $228 million, up from $200 million in 2002. Hertz earned $44 million in the 2003 fourth quarter, up from a year-ago pre-tax profit of $27 million. The year-over-year improvements reflected strong cost performance and improved leisure demand, partially offset by lower pricing.
OUTLOOK
"Through sound execution of our plans, we have cut costs, introduced a variety of new products, significantly improved our international operations and improved overall quality," said Chief Financial Officer Don Leclair. "This gives us increasing confidence in our ability to achieve the bottom-line goals we've set for 2004."
Based on operational metrics that include continued quality improvements, regional market-share stability or gains, and continued cost reductions, the company expects full-year 2004 earnings per share of $1.20 to $1.30 from continuing operations, excluding special items. This outlook assumes 2004 industry sales of 17 million vehicles in the U.S. and 16.9 million vehicles in Europe.
Ford's first-quarter earnings guidance is a range of 40 to 45 cents per share, based on income from continuing operations, excluding special items.
Investors and media can hear a review of the company's full-year and fourth-quarter results by Don Leclair via conference call at 800-299-7098 (617-801-9715 for international dial-in) or on the Internet at http://www.shareholder.ford.com/. The passcode for the conference call is the verbal response of "Ford Earnings Call." Supporting presentation material will be available at the same Internet address. The presentation will begin at 9:00 a.m. EST, Jan. 22.
Ford Motor Company, headquartered in Dearborn, Mich., is the world's second largest automaker, with approximately 335,000 employees in 200 markets on six continents. Its automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Credit, Quality Care and Hertz. Ford Motor Company celebrated its 100th anniversary on June 16, 2003.
2002 - 2003 FORTH QUARTER PRE-TAX RESULTS
Pre-Tax Profits Special Pre-Tax Profits
(Incl. Special Items) Items (Excl. Special Items)
2002 2003 2002 2003 2002 2003
(Mils.) (Mils.) (Mils.) (Mils.) (Mils.) (Mils.)
North America $513 $(1,400) $-- $(1,597) $513 $ 197
South America (96) (4) -- -- (96) (4)
Total Americas $417 $(1,404) $-- $(1,597) $417 $ 193
International
Europe $(190) $(397) $(173) $(457) $(17) $60
Asia Pacific (35) 26 -- -- (35) 26
P.A.G. (545) 108 (157) -- (388) 108
Other (12) (22) -- -- (12) (22)
Total
International $(782) $(285) $(330) $(457) $(452) $172
Other Automotive (205) (320) -- 49 (205) (369)
Total
Automotive $(570) $(2,009) $(330) $(2,005) $(240) $(4)
Financial Services 593 903 -- -- 593 903
Total Company $23 $(1,106) $(330) $(2,005) $353 $ 899
2002 - 2003 FULL YEAR PRE-TAX RESULTS
Pre-Tax Profits Special Pre-Tax Profits
(Incl. Special Items) Items (Excl. Special Items)
2002 2003 2002 2003 2002 2003
(Mils.) (Mils.) (Mils.) (Mils.) (Mils.) (Mils.)
North America $2,490 $165 $-- $(1,597) $ 2,490 $ 1,762
South America (622) (130) -- -- (622) (130)
Total Americas $1,868 $35 $-- $(1,597) $ 1,868 $1,632
International
Europe $(722) $(1,626) $(173) $(513) $(549) $(1,113)
Asia Pacific (176) (25) -- -- (176) (25)
P.A.G. (897) 164 (157) -- (740) 164
Other (15) 69 -- -- (15) 69
Total
International$(1,810) $(1,418) $(330) $(513) $(1,480) $(905)
Other Automotive (1,211) (574) (570) 49 (641) (623)
Total
Automotive $(1,153) $(1,957) $(900) $(2,061) $(253) $104
Financial Services 2,104 3,327 -- -- 2,104 3,327
Total Company $951 $1,370 $(900) $(2,061) $1,851 $3,431
Statements included herein may constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements 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 in the U.S. and Europe 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;
-- work stoppages at key 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 post-
retirement benefit plans (e.g., investment returns, interest rates,
health care cost trends, benefit improvements);
-- currency or commodity price fluctuations;
-- a market shift from truck sales in the U.S.;
-- economic difficulties in South America or Asia;
-- reduced availability of or higher prices for fuel;
-- labor or other constraints on our ability to restructure our business;
-- a change in our requirements under long-term supply arrangements under
which we are obligated to purchase minimum quantities or pay minimum
amounts;
-- a further credit rating downgrade;
-- 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;
-- increased price competition in the rental car industry and/or a
general decline in business or leisure travel due to terrorist
attacks, act of war or measures taken by governments in response
thereto that negatively affect the travel industry; and
-- our inability to implement the Revitalization Plan.
Ford Motor Company and Subsidiaries
SECTOR STATEMENT OF INCOME
For the Periods Ended December 31, 2003 and 2002
(in millions, except per share amounts)
Fourth Quarter Full Year
2003 2002 2003 2002
(unaudited) (unaudited)
AUTOMOTIVE
Sales $39,849 $34,615 $138,442 $134,273
Costs and expenses
Cost of sales 38,694 32,373 129,821 125,043
Selling, administrative
and other expenses 2,878 2,660 10,152 9,758
Total costs and
expenses 41,572 35,033 139,973 134,801
Operating income/(loss) (1,723) (418) (1,531) (528)
Interest income 143 173 870 834
Interest expense 455 331 1,370 1,368
Net interest
income/(expense) (312) (158) (500) (534)
Equity in net income/(loss)
of affiliated companies 26 6 74 (91)
Income/(loss) before
income taxes
- Automotive (2,009) (570) (1,957) (1,153)
FINANCIAL SERVICES
Revenues 6,159 6,859 25,754 27,983
Costs and expenses
Interest expense 1,526 1,726 6,320 7,468
Depreciation 1,899 2,582 8,779 10,162
Operating and
other expenses 1,275 1,205 4,971 4,974
Provision for credit
and insurance losses 556 753 2,357 3,275
Total costs
and expenses 5,256 6,266 22,427 25,879
Income/(loss) before
income taxes
- Financial Services 903 593 3,327 2,104
TOTAL COMPANY
Income/(loss) before
income taxes (1,106) 23 1,370 951
Provision for/(benefit
from) income taxes (532) (47) 135 301
Income/(loss) before
minority interests (574) 70 1,235 650
Minority interests in
net income/(loss)
of subsidiaries 69 82 314 367
Income/(loss) from
continuing operations (643) (12) 921 283
Income/(loss) from
discontinued/held-for-sale
operations (1) (14) (8) (62)
Loss on disposal of
discontinued/held-for-sale
operations (149) (104) (154) (199)
Cumulative effect of
change in accounting
principle -- -- (264) (1,002)
Net income/(loss) $(793) $(130) $495 $(980)
Income/(loss)
attributable to Common
and Class B Stock
after Preferred Stock
dividends $(793) $(134) $495 $(995)
Average number of shares
of Common and Class B
Stock outstanding 1,833 1,833 1,832 1,819
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
Basic income/(loss)
Income/(loss) from
continuing
operations $ (0.35) $ (0.01) $0.50 $0.15
Income/(loss) from
discontinued/
held-for-sale
operations -- (0.01) -- (0.04)
Loss on disposal of
discontinued/
held-for-sale
operations (0.08) (0.05) (0.09) (0.11)
Cumulative effect of
change in accounting
principle -- -- (0.14) (0.55)
Net income/(loss) $ (0.43) $ (0.07) $0.27 $(0.55)
Diluted income/(loss)
Income/(loss) from
continuing
operations $ (0.35) $ (0.01) $0.50 $0.15
Income/(loss) from
discontinued/
held-for-sale
operations -- (0.01) -- (0.03)
Loss on disposal
of discontinued/
held-for-sale
operations (0.08) (0.05) (0.09) (0.11)
Cumulative effect
of change in
accounting principle -- -- (0.14) (0.55)
Net income/(loss) $ (0.43) $ (0.07) $0.27 $(0.54)
Cash dividends $0.10 $0.10 $0.40 $0.40
Ford Motor Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
For the Periods Ended December 31, 2003 and 2002
(in millions, except per share amounts)
Fourth Quarter Full Year
2003 2002 2003 2002
(unaudited) (unaudited)
Sales and revenues
Automotive sales $39,849 $34,615 $138,442 $134,273
Financial Services
revenue 6,159 6,859 25,754 27,983
Total sales
and revenues 46,008 41,474 164,196 162,256
Automotive interest income 143 173 870 834
Costs and expenses
Cost of sales 38,694 32,373 129,821 125,043
Selling, administrative
and other expenses 6,052 6,447 23,902 24,894
Interest expense 1,981 2,057 7,690 8,836
Provision for credit
and insurance losses 556 753 2,357 3,275
Total costs
and expenses 47,283 41,630 163,770 162,048
Automotive equity
in net income/(loss)
of affiliated companies 26 6 74 (91)
Income/(loss) before
income taxes (1,106) 23 1,370 951
Provision for/(benefit
from) income taxes (532) (47) 135 301
Income/(loss) before
minority interests (574) 70 1,235 650
Minority interests in
net income/(loss)
of subsidiaries 69 82 314 367
Income/(loss) from
continuing operations (643) (12) 921 283
Income/(loss) from
discontinued/held-for-sale
operations (1) (14) (8) (62)
Loss on disposal of
discontinued/held-for-sale
operations (149) (104) (154) (199)
Cumulative effect of
change in accounting
principle -- -- (264) (1,002)
Net income/(loss) $(793) $(130) $495 $(980)
Income/(loss)
attributable to Common
and Class B Stock
after Preferred Stock
dividends $(793) $(134) $495 $(995)
Average number of
shares of Common
and Class B
Stock outstanding 1,833 1,833 1,832 1,819
AMOUNTS PER SHARE OF
COMMON AND CLASS B STOCK
Basic income/(loss)
Income/(loss) from
continuing
operations $ (0.35) $ (0.01) $0.50 $0.15
Income/(loss) from
discontinued/held-for-sale
operations -- (0.01) - - (0.04)
Loss on disposal of
discontinued/held-for-sale
operations (0.08) (0.05) (0.09) (0.11)
Cumulative effect of
change in
accounting principle -- -- (0.14) (0.55)
Net income/(loss) $ (0.43) $ (0.07) $0.27 $(0.55)
Diluted income/(loss)
Income/(loss) from
continuing
operations $ (0.35) $ (0.01) $0.50 $0.15
Income/(loss) from
discontinued/held-for-sale
operations -- (0.01) -- (0.03)
Loss on disposal of
discontinued/held-for-sale
operations (0.08) (0.05) (0.09) (0.11)
Cumulative effect of
change in accounting
principle -- -- (0.14) (0.55)
Net income/(loss) $ (0.43) $ (0.07) $0.27 $(0.54)
Cash dividends $0.10 $0.10 $0.40 $0.40
Ford Motor Company and Subsidiaries
SECTOR BALANCE SHEET
(in millions)
December 31, December 31,
2003 2002
ASSETS (unaudited)
Automotive
Cash and cash equivalents $5,427 $5,157
Marketable securities 10,749 17,464
Loaned securities 5,667 -
Total cash, marketable and loaned securities 21,843 22,621
Receivables, net 2,721 2,047
Inventories 9,181 6,977
Deferred income taxes 3,225 3,462
Other current assets 6,052 4,547
Current receivable from Financial Services -- 1,062
Total current assets 43,022 40,716
Equity in net assets of affiliated companies 1,930 2,470
Net property 41,993 36,352
Deferred income taxes 12,092 11,694
Goodwill 5,378 4,719
Other intangible assets 876 812
Assets of discontinued/held-for-sale operations 68 246
Other assets 15,282 10,781
Total Automotive assets 120,641 107,790
Financial Services
Cash and cash equivalents 16,343 7,064
Investments in securities 1,123 807
Finance receivables, net 110,893 97,007
Net investment in operating leases 31,859 39,727
Retained interest in sold receivables 13,017 17,618
Goodwill 769 749
Other intangible assets 239 248
Assets of discontinued/held-for-sale operations 388 2,783
Other assets 17,292 16,626
Receivable from Automotive 3,356 4,803
Total Financial Services assets 195,279 187,432
Total assets $315,920 $295,222
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive
Trade payables $ 15,289 $ 14,579
Other payables 2,942 2,471
Accrued liabilities 32,171 27,615
Debt payable within one year 1,806 551
Current payable to Financial Services 124 -
Total current liabilities 52,332 45,216
Senior debt 13,832 13,607
Subordinated debt 5,155 -
Total long-term debt 18,987 13,607
Other liabilities 45,104 46,887
Deferred income taxes 2,352 303
Liabilities of discontinued/held-for-sale
operations 94 213
Payable to Financial Services 3,232 4,803
Total Automotive liabilities 122,101 111,029
Financial Services
Payables 2,189 1,886
Debt 159,011 148,054
Deferred income taxes 11,061 11,629
Other liabilities and deferred income 9,211 9,441
Liabilities of discontinued/held-for-sale operations 37 861
Payable to Automotive -- 1,062
Total Financial Services liabilities 181,509 172,933
Company-obligated mandatorily redeemable
preferred securities of subsidiary
trusts holding solely junior
subordinated debentures of the Company -- 5,670
Minority interests 659 --
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 5,374 5,420
Accumulated other comprehensive income/(loss) (414) (6,531)
Treasury stock (1,749) (1,977)
Earnings retained for use in business 8,421 8,659
Total stockholders' equity 11,651 5,590
Total liabilities and stockholders' equity $315,920 $295,222
Ford Motor Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
(in millions)
December 31, December 31,
2003 2002
(unaudited)
ASSETS
Cash and cash equivalents $ 21,770 $ 12,221
Marketable securities 11,872 18,271
Loaned securities 5,667 --
Receivables, net 2,721 2,047
Finance receivables, net 110,893 97,007
Net investment in operating leases 31,859 39,727
Retained interest in sold receivables 13,017 17,618
Inventories 9,181 6,977
Equity in net assets of affiliated companies 2,959 3,569
Net property 43,598 37,923
Deferred income taxes 15,359 15,213
Goodwill 6,147 5,468
Other intangible assets 1,115 1,060
Assets of discontinued/held-for-sale operations 456 3,029
Other assets 35,950 29,227
Total assets $312,564 $289,357
LIABILITIES AND STOCKHOLDERS' EQUITY
Payables $ 20,420 $ 18,936
Accrued liabilities 29,591 25,059
Debt 179,804 162,212
Other liabilities and deferred income 53,899 56,270
Deferred income taxes 16,409 14,546
Liabilities of discontinued/held-for-sale operations 131 1,074
Total liabilities 300,254 278,097
Company-obligated mandatorily redeemable preferred
securities of subsidiary trusts holding solely
junior subordinated debentures of the Company -- 5,670
Minority interests 659 --
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 5,374 5,420
Accumulated other comprehensive income/(loss) (414) (6,531)
Treasury stock (1,749) (1,977)
Earnings retained for use in business 8,421 8,659
Total stockholders' equity 11,651 5,590
Total liabilities and stockholders' equity $312,564 $289,357
Ford Motor Company and Subsidiaries
CONDENSED SECTOR STATEMENT OF CASH FLOWS
For the Periods Ended December 31, 2003 and 2002
(in millions)
Full Year 2003 Full Year 2002
Financial Financial
Automotive Services Automotive Services
(unaudited)
Cash and cash equivalents
at January 1 $ 5,157 $7,064 $ 4,053 $3,131
Cash flows from
operating activities before
securities trading 1,336 17,052 9,479 15,261
Net sales/(purchases)
of trading securities 1,282 525 (6,206) (23)
Net cash flows from
operating activities 2,618 17,577 3,273 15,238
Cash flows from
investing activities
Capital expenditures (7,370) (379) (6,774) (502)
Acquisitions of
receivables and
lease investments -- (62,980) -- (81,690)
Collections of
receivables and
lease investments -- 42,727 -- 45,767
Net acquisitions of
daily rental vehicles -- (1,505) -- (1,846)
Purchases of securities (8,925) (1,149) (3,446) (609)
Sales and maturities
of securities 8,673 709 3,445 479
Proceeds from sales
of receivables
and lease investments -- 21,145 -- 41,289
Proceeds from sale
of businesses 77 204 257 --
Repayment of debt from
discontinued operations -- 1,421 -- --
Net investing activity
with Financial Services 3,708 -- 1,053 --
Cash paid for acquisitions -- -- (289) --
Cash recognized on
initial consolidation
of joint ventures 256 -- -- --
Other 716 55 -- 407
Net cash (used in)/
provided by investing
activities (2,865) 248 (5,754) 3,295
Cash flows from
financing activities
Cash dividends (733) -- (743)
Net sales/(purchases)
of Common Stock 9 -- 287
Proceeds from mandatorily
redeemable convertible
preferred securities -- -- 4,900
Preferred Stock
- Series B redemption -- (177)
Changes in
short-term debt (237) 1,542 (31) (14,140)
Proceeds from
issuance of
other debt 1,144 21,942 318 15,524
Principal payments
on other debt (1,097) (27,683) (859) (15,760)
Net financing
activity with Automotive -- (3,708) -- (1,053)
Other (15) (4) (23) 369
Net cash (used in)/provided
by financing activities (929) (7,911) 3,672 (15,060)
Effect of exchange rate
changes on cash 260 551 37 336
Net transactions with
Automotive/Financial
Services 1,186 (1,186) (124) 124
Net increase/(decrease)
in cash and cash
equivalents 270 9,279 1,104 3,933
Cash and cash equivalents
at December 31 $ 5,427 $16,343 $ 5,157 $ 7,064
Ford Motor Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the Periods Ended December 31, 2003 and 2002
(in millions)
Full Year
2003 2002
(unaudited)
Cash and cash equivalents at January 1 $ 12,221 $7,184
Cash flows from operating activities
before securities trading 18,388 24,740
Net sales/(purchases) of trading securities 1,807 (6,229)
Net cash flows from operating activities 20,195 18,511
Cash flows from investing activities
Capital expenditures (7,749) (7,276)
Acquisitions of receivables
and lease investments (62,980) (81,690)
Collections of receivables
and lease investments 42,727 45,767
Net acquisitions of daily rental vehicles (1,505) (1,846)
Purchases of securities (10,074) (4,055)
Sales and maturities of securities 9,382 3,924
Proceeds from sales of receivables
and lease investments 21,145 41,289
Proceeds from sale of businesses 281 257
Repayment of debt from discontinued operations 1,421 --
Cash paid for acquisitions -- (289)
Cash recognized on initial consolidation
of joint ventures 256 --
Other 771 407
Net cash (used in)/provided by
investing activities (6,325) (3,512)
Cash flows from financing activities
Cash dividends (733) (743)
Net sales/(purchases) of Common Stock 9 287
Proceeds from mandatorily redeemable
convertible preferred securities -- 4,900
Preferred Stock - Series B redemption -- (177)
Changes in short-term debt 1,305 (14,171)
Proceeds from issuance of other debt 23,086 15,842
Principal payments on other debt (28,780) (16,619)
Other (19) 346
Net cash (used in)/provided by
financing activities (5,132) (10,335)
Effect of exchange rate changes on cash 811 373
Net increase/(decrease) in
cash and cash equivalents 9,549 5,037
Cash and cash equivalents at December 31 $ 21,770 $ 12,221