Ford Sets Financial Milestones for 1999
8 January 1999
Ford Sets Financial Milestones for 1999
DEARBORN, Mich., Jan. 7 -- For the third consecutive year,
Ford Motor Company is sharing its milestones for the upcoming 12
months with employees, investors and the public.
"We want to communicate our business targets with our employees and
investors to provide a clear message of where we want to go," said Jacques
Nasser, Ford's chief executive officer.
The 1999 milestones are:
Automotive Full-Year Milestone
* North America After-tax return on sales (ROS) greater than 5
percent
* Europe Grow earnings
* South America Improve operating results
* Total Costs Down $1 billion from 1998 (at constant volume
and mix)
* Capital Spending $8.5 billion (includes capitalized software)
Automotive-Related
* Ford Credit Grow earnings by 10 percent
* Visteon Earnings growth; obtain $2 billion of new
business
* Hertz Record earnings (eighth consecutive year of
increased earnings)
Total Company
* Total shareholder
returns Top quartile of the S&P 500 over time.
"The 'bars' for the milestones continue to be set high because they are
designed to focus everyone in the company on fundamental change, significant
improvement and superior customer and shareholder value," said Nasser.
"As we reach our milestones, we hope to continue to build investor
confidence in our ability to consistently improve the structure of the
business."
STATUS OF 1998 FINANCIAL MILESTONES
Ford is on track to meet or exceed nearly all of its 1998 milestones. The
present full-year outlooks for South America and Ford Credit are below their
respective milestones.
Automotive Full-Year Milestone 1998 Actual
(First Nine Months)
* North America 5 percent ROS 5.7 percent ROS
* Europe Profitable $267 million net income
* South America Breakeven ($75 million loss)
* Total Costs* Down $1 billion from 1997 Down $1.9 billion
* Capital Spending Lower than 1997 $5.7 billion; down $85
million
Automotive Related
* Visteon $1.5 billion in new business $1.8 billion in new
business
Improve ROS 4.4 percent ROS, up
0.7 points
* Ford Credit Grow earnings 10 percent $850 million net
income, up 5 percent
* Hertz Record earnings $229 million net
income, up $62 million
1997 MILESTONES
Automotive Full-Year Milestone 1997 Actual
* North America 4 percent ROS 5.1 percent ROS,
up 2.3 points
* Europe Breakeven or better $273 million net
income, up
$564 million
* South America Reduce loss $40 million net income,
up $682 million
* Total Costs* Down $1 billion from 1996 Down $3 billion
* Capital Spending About equal to 1996; down $8.1 billion/6.6
as a percentage of revenue percent of revenue;
down $67 million/
0.4 points
* At constant volume and mix