Ford Posts First Quarter 2010 Net Income of $2.1 Billion as Strong New Products Fuel Profitable Growth+
 |
DEARBORN, Mich., April 27 -- -- Ford reports first quarter net income
of $2.1 billion, or 50 cents pershare, a $3.5 billion improvement from first
quarter 2009. Pre-tax operating profit of $2 billion, or 46 cents per share,
a $4 billion improvement from first quarter 2009++
-- Ford Automotive operations posted first quarter pre-tax operating
profit of $1.2 billion, a $3.2 billion improvement from first quarter
2009++
-- Ford North America reported first quarter pre-tax operating profit of
more than $1.2 billion, a $1.9 billion improvement from first quarter
2009; Ford Europe earned a pre-tax operating profit of $107 million, a
$692 million improvement from a year ago++
-- Revenue for the quarter totaled $28.1 billion, a $3.7 billion
improvement from first quarter 2009++
-- Strong response to new vehicles drove the largest quarterly U.S.
market share gain since 1977
-- Ended the quarter with $25.3 billion of Automotive gross cash, with
operating-related cash outflow of $100 million. Ford ended the
quarter with $34.3 billion in Automotive debt
-- Ford Motor Credit Company reported first quarter pre-tax operating
profit of $828 million, an $864 million improvement from first quarter
2009
-- Based on Ford's improving performance, the gradually strengthening
economy, and its present assumptions, Ford now expects to deliver
solid profits this year with positive Automotive operating-related
cash flow
Financial Results Summary+ First Quarter
-------------
O/(U)
2009 2010 2009
---- ------
Wholesales (000) ++ 986 1,253 267
Revenue (Bils.) ++ $24.4 $28.1 $3.7
Operating Results ++
--------------------
Automotive Sector (Mils.) $(1,963) $1,195 $3,158
Financial Services Sector (Mils.) (62) 815 877
--- --- ---
Pre-Tax Results (Mils.) $(2,025) $2,010 $4,035
After-Tax Results (Mils.) $(1,793) $1,761 $3,554
Earnings Per Share+++ $(0.75) $0.46 $1.21
Special Items Pre-Tax (Mils.) $363 $125 $(238)
-----------------------------
Net Income/(Loss) Attributable
to Ford
------------------------------
After-Tax Results (Mils.) $(1,427) $2,085 $3,512
Earnings Per Share $(0.60) $0.50 $1.10
Automotive Gross Cash (Bils.) $20.9 $25.3 $4.4
----------------------------- ----- ----- ----
See end notes below.
Ford Motor Company today reported first quarter 2010 net income of $2.1 billion, or 50 cents per share, a $3.5 billion improvement from first quarter 2009, as strong selling new products, improvements in its global Automotive operations, and higher profits at Ford Credit boosted results.
Excluding special items, Ford reported pre-tax operating profit of $2 billion, or 46 cents per share, an improvement of $4 billion from a year ago. It marked Ford's highest quarterly pre-tax operating profit in six years.
Ford North America posted first quarter pre-tax operating profit of more than $1.2 billion, a $1.9 billion improvement from first quarter 2009, as a result of higher volume and mix and favorable net pricing. Ford operations in South America, Europe and Asia Pacific Africa as well as Ford Credit also posted pre-tax operating profits in the first quarter and improved results over the same period in 2009.
"The Ford team around the world achieved another very solid quarter, and we are delivering profitable growth," said Ford President and CEO Alan Mulally. "Our plan is working, and the basic engine that drives our business results - products, market share, revenue and cost structure - is performing stronger each quarter, even as the economy and vehicle demand remain relatively soft."
At the end of March, Ford entered into a definitive agreement to sell Volvo and related assets to Zhejiang Geely Holding Group for $1.8 billion, subject to customary purchase price adjustments. The sale is expected to close in the third quarter of 2010. As a result of the agreement to sell Volvo, all of Volvo's 2010 results are being reported as special items and excluded from Ford's operating results; 2009 data include Volvo.
Ford's first quarter revenue was $28.1 billion, up $3.7 billion from the same period a year ago. If Volvo had been excluded from 2009, Automotive revenue would have increased by $7 billion, or more than 30 percent.
Ford finished the first quarter with $25.3 billion in Automotive gross cash, an increase of $400 million since year end. Automotive operating-related cash outflow was $100 million during the first quarter, as Automotive pre-tax operating profit was more than offset by changes in working capital and other timing differences, as well as a $300 million payment to Ford Credit reflecting up-front subvention payment. The company ended the first quarter with total Automotive debt of $34.3 billion, an increase of $700 million compared to year-end 2009.
On April 6, Ford paid down $3 billion of the drawn amount of its 2013 revolving credit facility. This payment has reduced Automotive gross cash and debt by $3 billion, which will be reflected on Ford's second quarter 2010 balance sheet. The action did not affect Automotive liquidity, as the repaid amounts remain available for borrowing.
Special items were a favorable pre-tax amount of $125 million in the first quarter of 2010, or 7 cents per share. Ford recorded a $188 million gain related to held-for-sale adjustments for Volvo, which was offset partially by $63 million of global personnel reductions and dealer-related charges. If Volvo had continued to be reported as an ongoing operation, Ford would have reported a first quarter pre-tax operating profit of $49 million for Volvo.
"We are seeing the benefits of our One Ford plan around the world," said Lewis Booth, Ford executive vice president and chief financial officer. "All of our business operations - North America, South America, Europe, Asia Pacific Africa and Ford Credit - were not only profitable, but also showed substantially improved results over a year ago."
The following discussion of first 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 cost changes is measured primarily at prior-year exchange, and excludes special items and discontinued operations. In addition, costs that vary directly with volume, such as material, freight, and warranty costs are measured at prior-year volume and mix.
ADDITIONAL FIRST QUARTER 2010 HIGHLIGHTS
-- Increased U.S. market share by 2.7 percentage points to 16.6 percent
and a 14.1 share of the retail market, fueled by strong sales of
Fusion, F-150, Taurus and Focus
-- Achieved market leadership in Canada, boosting market share to 15.5
percent and increasing sales by 29 percent
-- Increased sales by 14 percent in the South American region and sold a
record 88,000 vehicles in Brazil
-- Increased sales in Europe and achieved a 9.4 percent market share. In
March, Ford was the best selling brand in Europe for the 19 markets we
track
-- Ford Asia Pacific Africa increased sales by 39 percent as the Fiesta
gained momentum in several markets
-- Ford, Lincoln and Mercury vehicles achieved the highest customer
satisfaction and the fewest number of "things gone wrong" among all
full-line manufacturers, according to the first quarter Global Quality
Research System survey for the U.S.
-- Revealed new global Ford Focus, which goes on sale early next year in
North America and Europe, and in 2012 for Asia
-- Revealed 2011 Ford Edge and Lincoln MKX, which reach showrooms this
fall and will be the first vehicles to feature MyFord Touch and
MyLincoln Touch
-- Unveiled the Lincoln MKZ Hybrid, expected to be America's most
fuel-efficient luxury sedan
-- Announced partnership with Microsoft to use Microsoft Hohm as a
platform to help future owners of Ford's electric vehicles manage
energy use
-- Began production of Figo small car for India; received 10,000 orders
in first month on the market
-- Began production of the next-generation F-Series Super Duty lineup
with new fuel-efficient diesel and gasoline engines
-- Announced Ford's electric vehicles plan is extending to Europe with
plans to launch five full-electric or hybrid vehicles for European
customers by 2013
-- Announced plan to increase investment in Brazil and Argentina by $450
million to more than $2.6 billion by 2015
-- Announced $2.3 billion investment in U.K. manufacturing facilities
over the next five years to support production of low-carbon emission
vehicles
-- Announced $400 million investment in South Africa to support
production of Ford's next-generation compact pickup truck and Puma
diesel engine
-- Confirmed $400 million investment in Chicago Assembly Plant and the
addition of 1,200 jobs to support production of the next-generation
Ford Explorer
AUTOMOTIVE SECTOR
Automotive Sector+ First Quarter
-------------
O/(U)
2009 2010 2009
---- ---- ------
Wholesales (000) 986 1,253 267
Revenue (Bils.) $21.0 $25.4 $4.4
Pre-Tax Results (Mils.) $(1,963) $1,195 $3,158
----------------------- ------- ------ ------
For the first quarter of 2010, Ford's worldwide Automotive sector reported a pre-tax operating profit of $1.2 billion, compared with a loss of $2 billion a year ago. The improvement reflected higher volume and mix, as well as improvements in net pricing across all Automotive segments.
Total vehicle wholesales in the first quarter were 1.3 million, compared with 986,000 units a year ago. Worldwide Automotive revenue in the first quarter was $25.4 billion, up from $21 billion a year ago.
North America: For the first quarter, Ford North America reported a pre-tax operating profit of more than $1.2 billion, compared with a loss of $665 million a year ago. The improvement was more than explained by higher volume and mix and favorable net pricing. First quarter revenue was $14.1 billion, up from $10 billion a year ago.
South America: For the first quarter, Ford South America reported a pre-tax operating profit of $203 million, compared with a profit of $63 million a year ago. The increase was more than explained by favorable exchange and net pricing, offset partially by higher costs. First quarter revenue was $2 billion, up from $1.4 billion a year ago.
Europe: For the first quarter, Ford Europe reported a pre-tax operating profit of $107 million, compared with a loss of $585 million a year ago. The improvement was explained primarily by higher volume, lower costs, and higher parts profit. First quarter revenue was $7.7 billion, up from $5.8 billion a year ago.
Asia Pacific Africa: For the first quarter, Ford Asia Pacific Africa's pre-tax operating profit was $23 million, compared with a loss of $97 million a year ago. The improvement was more than explained by higher profits of unconsolidated China joint ventures driven by higher industry volumes , favorable net pricing, increases in industry volume outside of China and favorable exchange. First quarter revenue was $1.6 billion, up from $1.2 billion a year ago.
Other Automotive: Other Automotive consists primarily of interest and financing-related costs and resulted in a first quarter pre-tax operating loss of $391 million, more than explained by net interest expense of $492 million.
FINANCIAL SERVICES SECTOR
Financial Services Sector+ First Quarter
-------------
O/(U)
(in millions) 2009 2010 2009
------------- ---- ---- ------
Ford Credit Pre-Tax Results $(36) $828 $864
Other Financial Services Pre-Tax
Results (26) (13) 13
--- --- ---
Financial Services Pre-Tax Results $(62) $815 $877
---------------------------------- ==== ==== ====
For the first quarter, the Financial Services sector reported a pre-tax operating profit of $815 million, compared with a loss of $62 million a year ago.
Ford Motor Credit Company: Ford Credit reported a pre-tax operating profit of $828 million in the first quarter, compared with a pre-tax loss of $36 million a year ago. The improvement primarily reflected lower depreciation expense for leased vehicles due to higher auction values and a lower provision for credit losses, offset partially by lower volume.
OUTLOOK
Ford said it continues to make progress on all four pillars of its plan:
-- Aggressively restructuring to operate profitably at the current demand
and changing model mix
-- Accelerating the development of new products that customers want and
value
-- Financing the plan and improving the balance sheet
-- Working together effectively as one team, leveraging Ford's global
assets
Overall, Ford said its performance this year is off to a more encouraging start than anticipated. Based on Ford's improving performance, the gradually strengthening economy, and its present assumptions, Ford now expects to deliver solid profits this year with positive Automotive operating-related cash flow.
Ford expects full-year 2010 U.S. industry sales will be in the range of 11.5 million to 12.5 million, consistent with the guidance previously communicated by the company.
In Europe, Ford now expects full-year industry volume will be in the 14 million to 15 million range, which is somewhat higher than the previous guidance. The change reflects strong first quarter results, although uncertainty remains in Europe about the extent of payback from scrappage programs.
Initial quality improved across all of Ford's regions based on the latest Global Quality Research System survey. Ford is on track to meet full-year quality targets.
As mentioned previously, Ford has achieved significant structural cost reductions over the past four years, and in 2010 expects full year Automotive structural costs to be somewhat higher as Ford increases production to meet demand.
Ford expects full year U.S. total market share and its share of the U.S. retail market to be equal or improved compared with 2009 and Europe market share is expected to be equal to 2009.
Ford expects second quarter 2010 production to be up compared with year-ago levels and up compared to first quarter 2010 production. The increase reflects strong customer demand for our products, the maintenance of competitive stock levels, and the non-recurrence of prior year stock reductions.
Ford now expects Ford Credit's 2010 profits to be about the same as 2009. The recent improvements in used vehicle auction values and credit loss performance are expected to offset the effects of lower average receivables and the non-recurrence of certain favorable 2009 factors.
"We are absolutely committed to building great products, a stronger business, and contributing to a better world," Mulally said. "Our product lineup is stronger than ever, and our leadership in quality, fuel efficiency, safety, smart design and value is resonating with consumers.
"We remain cautiously optimistic about positive signs emerging in the global economy, while knowing that the recovery is fragile and the global auto industry continues to deal with excess capacity. For us, the most important thing we can do is to stay focused and continue to make progress on our plan," Mulally said.
Ford's 2010 planning assumptions regarding the industry and operating metrics include the following:
First Full Year Full Year
Planning Assumptions Quarter Plan Outlook
-------------------- ------- --------- ---------
Industry Volume (SAAR)*
- U.S. (million units) 11.2 11.5 - 12.5 On Track
- Europe (million units)** 16.0 13.5 - 14.5 14.0 - 15.0
Operational Metrics
-------------------
Compared with Prior Year:
- Quality: Improved Improve On Track
- Automotive Structural
Costs*** $100 Million Somewhat On Track
Lower Higher
- U.S. Total Market Share
(Ford, Lincoln, and
Mercury) 16.6% Equal/Improve On Track
- U.S. Share of Retail
Market**** 14.1% Equal/Improve On Track
- Europe Market Share ** 9.4% Equal On Track
Absolute Amount:
- Automotive Operating
-Related Cash Flow $(100) Million Positive On Track
- Capital Spending $900 Million $4.5 to $5 On Track
Billion
FORD EXPECTS TO DELIVER SOLID PROFITS IN 2010
WITH POSITIVE AUTOMOTIVE OPERATING-RELATED CASH FLOW
* Includes medium and heavy trucks
** European 19 markets we track
*** Structural cost changes are measured primarily at prior-year
exchange, and exclude special items and discontinued operations
**** Estimate
Ford's production volumes are shown below:
Production Volumes Actual Forecast
------------------ ------ --------
First Quarter 2010 Second Quarter 2010
------------------ -------------------
Units O/(U) 2009 Units O/(U) 2009
(000) (000) (000) (000)
------ ----------- ------ -----------
Ford North America 574 225 625 174
Ford South America 110 11 135 25
Ford Europe 442 99 448 50
Ford Asia Pacific Africa 194 79 213 73
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 176,000 employees and about 80 plants worldwide, the company's automotive brands include Ford, Lincoln, Mercury and, until its sale, Volvo. The company provides financial services through Ford Motor Credit Company.
The financial results discussed herein are presented on a
preliminary basis; final data will be included in Ford's Quarterly
Report on Form 10-Q for the quarter ended March 31, 2010. As a
result of Ford's agreement to sell Volvo, 2010 results for Volvo
are being reported as special items and excluded from operating
results; 2009 operating results include Volvo unless otherwise
indicated. As disclosed last quarter, the new accounting standard
for variable interest entity consolidation, effective Jan. 1,
2010, required Ford to deconsolidate many of its joint ventures.
In addition to results in the first quarter of 2010 reflecting
this new standard, 2009 results have been adjusted to reflect the
deconsolidation of many of Ford's joint ventures, with Ford's
joint venture in Turkey, Ford Otosan, being the most significant.
For wholesale unit sales and production volumes, amounts include
the sale or production of Ford-brand and JMC-brand vehicles by
unconsolidated affiliates. JMC refers to our Chinese joint
venture, Jiangling Motors Corporation. See materials supporting
the April 27, 2010 conference calls at www.shareholder.ford.com
for discussion of wholesale unit volumes. Discussion of overall
Automotive cost changes is at constant exchange and excludes
special items and discontinued operations; in addition, costs that
vary directly with production volume, such as material, freight,
and warranty costs, are measured at constant volume and mix
(generally, by holding constant prior-year levels). See tables
following the "Safe Harbor/Risk Factors" for the nature and
amount of special items, and reconciliation of items designated as
"excluding special items" to U.S. generally accepted accounting
principles ("GAAP"). Also see the tables following "Safe Harbor/
Risks Factors" reconciliation of Automotive gross cash and
+ operating-related cash flow to GAAP.
++ Excluding special items.
Excluding special items and "Income/(Loss) attributable to non-
controlling interests." See tables following "Safe Harbor/Risk
Factors" for the nature and amount of these special items and
+++ reconciliation to GAAP.
FIRST QUARTER 2010 NET INCOME/(LOSS) COMPARED WITH 2009
First Quarter
-------------
2009 2010
---- ----
Revenue (Bils.)
---------------
Revenue (Excluding Special Items) $24.4 $28.1
Special Items* - 3.5
---
Revenue $24.4 $31.6
===== =====
Income (Mils.)
--------------
Pre-Tax Results from Continuing Operations
(Excluding Special Items) $(2,025) $2,010
Special Items* 363 125
--- ---
Pre-Tax Income/(Loss) from Continuing
Operations $(1,662) $2,135
(Provision for)/Benefit from Income Taxes 227 (50)
--- ---
Income/(Loss) from Continuing Operations $(1,435) $2,085
Income/(Loss) from Discontinued Operations - -
Net Income/(Loss) $(1,435) $2,085
Less: Income/(Loss) attributable to non-
controlling interests (8) -
--- ---
Net Income/(Loss) attributable to Ford $(1,427) $2,085
======= ======
* Special items detailed in table below
2009-2010 FIRST QUARTER INCOME/(LOSS) FROM CONTINUING OPERATIONS
Incl. Special Items Special Items
------------------- -------------
(in millions) 2009 2010 2009 2010
---- ---- ---- ----
Pre-Tax Results
- North America $(802) $1,223 $(137) $(30)
- South America 63 203 - -
- Europe (590) 75 (5) (32)
- Asia Pacific Africa (104) 22 (7) (1)
---- --- --- ---
Total $(1,433) $1,523 $(149) $(63)
- Other Automotive 840 (391) 1,270 -
--- ---- -----
Total Ongoing Automotive $(593) $1,132 $1,121 $(63)
- Volvo (915) 188 (666) 188
- Jaguar Land Rover (2) - (2) -
--- ---
Total Automotive $(1,510) $1,320 $453 $125
- Financial Services (152) 815 (90) -
---- --- --- ---
Total Company Pre-Tax
Results $(1,662) $2,135 $363 $125
(Provision for)/Benefit
from Income Taxes 227 (50) 3 199
--- --- --- ---
Income/(Loss) from
Continuing Operations $(1,435) $2,085 $366 $324
(Income)/Loss Attributable
to Non-Controlling
Interests 8 - - -
--- --- --- ---
Income/(Loss) from
Continuing Operations
Attributable to Ford $(1,427) $2,085 $366 $324
======= ====== ==== ====
Excl. Special
Items
-------------
(in millions) 2009 2010
---- ----
Pre-Tax Results
- North America $(665) $1,253
- South America 63 203
- Europe (585) 107
- Asia Pacific Africa (97) 23
--- ---
Total $(1,284) $1,586
- Other Automotive (430) (391)
---- ----
Total Ongoing Automotive $(1,714) $1,195
- Volvo (249) -
- Jaguar Land Rover - -
Total Automotive $(1,963) $1,195
- Financial Services (62) 815
--- ---
Total Company Pre-Tax Results $(2,025) $2,010
(Provision for)/Benefit from
Income Taxes 224 (249)
--- ----
Income/(Loss) from Continuing
Operations $(1,801) $1,761
(Income)/Loss Attributable to
Non-Controlling Interests 8 -
--- ---
Income/(Loss) from Continuing
Operations Attributable to Ford $(1,793) $1,761
======= ======
*Special items detailed in table below
FIRST QUARTER SPECIAL ITEMS
(in millions) Income/(Loss)
-------------
Personnel and Dealer-Related Items: 2009 2010
----------------------------------- ---- ----
Automotive Sector
Ford North America
Retiree health care $(178) $20
Personnel-reduction programs (170) (53)
U.S. dealer consolidation (primarily
dealership impairments) (81) (15)
Job Security Benefits/Transition Assistance
Plan 292 18
--- ---
Total Ford North America (137) (30)
Ford Europe
Personnel-reduction programs (5) (32)
Ford Asia Pacific Africa
Personnel-reduction programs (7) (1)
--- ---
Total Personnel and Dealer-Related Items -
Automotive sector (149) (63)
Other Items:
------------
Automotive Sector
Volvo
Held-for-sale impairment and related items* (666) 188
Other Automotive
Gain on debt reduction actions 1,270 -
Jaguar Land Rover
Other (2) -
---
Total Other Items - Automotive sector 602 188
Financial Services Sector
Diversified Financial Operations impairment (141) -
Gain on purchase of debt securities 51 -
---
Total Other Items - Financial Services sector (90) -
---
Total $363 $125
==== ====
Memo: Special Items Impact on Earnings Per
Share $0.15 $0.07
* All Volvo first quarter 2010 financial results treated as special
items, including Volvo's revenue of $3.5 billion and wholesales of
92,000 units.
TOTAL COMPANY CALCULATION OF EARNINGS PER SHARE
First Quarter 2010
------------------
After-Tax
Oper. Results
Net Income Excl. Special
(in millions) Attributable Items**
------------- --------------
to Ford*
--------
Numerator
---------
After-Tax Results $2,085 $1,761
Impact on income from assumed exchange of
convertible notes and convertible trust
preferred securities 110 110
--- ---
After-Tax Operating Results for EPS $2,195 $1,871
======
Impact on income from assumed share issuance
to settle UAW VEBA Note B 97
---
Net Income for EPS $2,292
======
Denominator
-----------
Average shares outstanding 3,365 3,365
Net issuable shares, primarily warrants and
restricted stock units 205 205
Convertible notes 372 372
Convertible trust preferred securities 163 163
--- ---
Average Shares for Operating EPS 4,105 4,105
=====
UAW VEBA Note B 464
---
Average Shares for Net Income EPS 4,569
=====
EPS $0.50 $0.46
* Accounting standards require that our EPS calculation from Net
Income include shares equal to the number we would have issued had
we settled in stock our new UAW VEBA Note B in its entirety during
the period. For the first quarter, this hypothetical stock issuance
added 464 million shares, which reduced EPS by 3 cents per share.
Note B, however, does not allow us to make any prepayment in shares;
it only allows for each annual payment to be made, at our option, in
stock, cash, or a combination thereof. We will use our discretion
in determining which form of payment makes economic sense at the
time of each required payment, balancing liquidity needs and
preservation of shareholder value. We made our December 31, 2009
payment on Note B in cash.
** Excludes Income/(Loss) attributable to non-controlling
interests and the effect of discontinued operations; special items
detailed above.
U.S. GAAP RECONCILIATION OF AUTOMOTIVE GROSS CASH
Memo: Dec
Mar 31, Mar 31, Mar 31, 2010 31, 2009
(in billions) 2009 * 2010 B/(W) *
------- ------- ------------ ---------
Mar 31, 2009 *
--------------
Cash and Cash Equivalents $7.7 $12.8 $5.1 $9.7
Marketable Securities ** 13.5 12.5 (1.0) 15.2
---- ---- ---- ----
Total Cash and Marketable
Securities $21.2 $25.3 $4.1 $24.9
Securities-In-Transit *** - - - -
UAW-Ford TAA/Other **** (0.3) - 0.3 -
---- --- ---
Gross Cash $20.9 $25.3 $4.4 $24.9
===== ===== ==== =====
* Adjusted to reflect the new accounting standard on VIE
consolidation
** Included at March 31, 2010 and 2009 are Ford Credit debt
securities that we purchased, which are reflected in the table at a
carrying value of $432 million and $357 million, respectively; the
estimated fair value of these securities is $439 million and $309
million, respectively. Also included are Mazda marketable
securities with a fair value of $551 million and $325 million at
March 31, 2010 and 2009, respectively.
*** 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.
**** Amount transferred to UAW-Ford TAA that, due to consolidation,
was shown in cash and marketable securities.
U.S. GAAP RECONCILIATION OF AUTOMOTIVE OPERATING-RELATED CASH FLOWS
(in billions) 2010
----
First
Quarter O/(U)
-------- -----
2009*
-----
Cash Flows from Operating Activities of Continuing
Operations $0.7 $3.1
Items Included in Operating-Related Cash Flows:
Capital Expenditures (0.9) 0.2
Net Transactions Between Automotive and Financial
Services Sectors ** (0.7) (0.1)
Net Cash Flows from Non-Designated Derivatives - (0.2)
Items Not Included in Operating-Related Cash Flows:
Cash Impact of Job Security Benefits & Personnel
Reduction Program 0.1 (0.2)
Pension Contributions 0.3 (0.1)
Tax Refunds and Tax Payments from Affiliates - 0.3
Other*** 0.4 0.4
--- ---
Operating-Related Cash Flows $(0.1) $3.4
===== ====
* Adjusted to reflect the new accounting standard on VIE
consolidation
** Primarily payables and receivable between the Automotive and
Financial Services sectors in the normal course of business
*** 2010 includes cash flows for held-for-sale operations.