<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>e101701ex991.txt
<TEXT>
Exhibit 99.1
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
--------------------------------
For the Periods Ended September 30, 2001 and 2000
(in millions)
Third Quarter Nine Months
--------------------------- ----------------------------
2001 2000 2001 2000
----------- ----------- ----------- ------------
(unaudited) (unaudited)
<s> <c> <c> <c> <c>
AUTOMOTIVE
Sales $28,554 $32,582 $97,756 $106,123
Costs and expenses (Note 2)
Cost of sales (Note 3) 27,296 29,670 91,759 94,753
Selling, administrative and other expenses 2,342 2,338 7,184 7,061
------- ------- ------- --------
Total costs and expenses 29,638 32,008 98,943 101,814
Operating income (loss) (1,084) 574 (1,187) 4,309
Interest income 144 382 617 1,139
Interest expense 308 367 1,005 1,012
------- ------- ------- --------
Net interest income (expense) (164) 15 (388) 127
Equity in net loss of affiliated companies (346) (61) (686) (64)
------- ------- ------- --------
Income (loss) before income taxes - Automotive (1,594) 528 (2,261) 4,372
FINANCIAL SERVICES
Revenues 7,998 7,473 23,556 21,335
Costs and expenses
Interest expense 2,287 2,451 7,331 6,975
Depreciation 2,680 2,427 7,873 7,033
Operating and other expenses (Note 3) 1,476 1,257 4,255 3,717
Provision for credit and insurance losses 929 482 2,187 1,347
------- ------- ------- --------
Total costs and expenses 7,372 6,617 21,646 19,072
------- ------- ------- --------
Income before income taxes - Financial Services 626 856 1,910 2,263
------- ------- ------- --------
TOTAL COMPANY
Income (loss) before income taxes (968) 1,384 (351) 6,635
Provision for income taxes (285) 449 2 2,199
------- ------- ------- --------
Income (loss) before minority interests (683) 935 (353) 4,436
Minority interests in net income of subsidiaries 9 47 32 103
------- ------- ------- --------
Income (loss) from continuing operations (692) 888 (385) 4,333
Income from discontinued operation (Note 4) - - - 309
Loss on spin-off of discontinued operation (Note 4) - - - (2,252)
------- ------- ------- --------
Net income (loss) $ (692) $ 888 $ (385) $ 2,390
======= ======= ======= ========
Income (loss) attributable to Common and Class B
Stock after preferred stock dividends $ (696) $ 884 $ (396) $ 2,379
Average number of shares of Common and Class B
Stock outstanding 1,812 1,649 1,823 1,354
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK (Notes 5 and 6)
Basic Income
Income (loss) from continuing operations $ (0.39) $ 0.54 $ (0.22) $ 3.21
Income from discontinued operation - - - 0.23
Loss on spin-off of discontinued operation - - - (1.67)
------- ------- ------- --------
Net income (loss) $ (0.39) $ 0.54 $ (0.22) $ 1.77
Diluted Income
Income (loss) from continuing operations $ (0.38) $ 0.53 $ (0.21) $ 3.14
Income from discontinued operation - - - 0.23
Loss on spin-off of discontinued operation - - - (1.64)
------- ------- ------- --------
Net income (loss) $ (0.38) $ 0.53 $ (0.21) $ 1.73
Cash dividends $ 0.30 $ 0.50 $ 0.90 $ 1.50
</TABLE>
The accompanying notes are part of the financial statements.
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
--------------------------
(in millions)
September 30, December 31,
2001 2000
----------------- -----------------
(unaudited)
<s> <c> <c>
ASSETS
Automotive
Cash and cash equivalents $ 6,127 $ 3,374
Marketable securities 6,875 13,116
-------- --------
Total cash and marketable securities 13,002 16,490
Receivables 2,747 4,685
Inventories (Note 7) 7,110 7,514
Deferred income taxes 2,692 2,239
Other current assets 5,427 5,318
Current receivable from Financial Services 1,815 1,587
-------- --------
Total current assets 32,793 37,833
Equity in net assets of affiliated companies 2,662 2,949
Net property 35,825 37,508
Deferred income taxes 3,503 3,342
Other assets 12,847 12,680
-------- --------
Total Automotive assets 87,630 94,312
Financial Services
Cash and cash equivalents 4,511 1,477
Investments in securities 416 817
Finance receivables, net 112,728 125,164
Net investment in operating leases 49,112 46,593
Other assets 20,937 12,390
Receivable from Automotive 2,193 2,637
-------- --------
Total Financial Services assets 189,897 189,078
-------- --------
Total assets $277,527 $283,390
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive
Trade payables $ 15,258 $ 15,075
Other payables 3,802 4,011
Accrued liabilities 22,591 23,369
Income taxes payable 26 449
Debt payable within one year 283 277
-------- --------
Total current liabilities 41,960 43,181
Long-term debt 11,804 11,769
Other liabilities 31,032 29,610
Deferred income taxes 296 353
Payable to Financial Services 2,193 2,637
-------- --------
Total Automotive liabilities 87,285 87,550
Financial Services
Payables 4,706 5,297
Debt 154,285 153,510
Deferred income taxes 8,448 8,677
Other liabilities and deferred income 6,951 7,486
Payable to Automotive 1,815 1,587
-------- --------
Total Financial Services liabilities 176,205 176,557
Company-obligated mandatorily redeemable preferred securities of a subsidiary
tTrust holding solely junior subordinated debentures of the Company (Note 8) 672 673
Stockholders' equity
Capital stock
Preferred Stock, par value $1.00 per share (aggregate liquidation preference
of $177 million) * *
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 5,970 6,174
Accumulated other comprehensive income (Notes 3 and 9) (5,575) (3,432)
ESOP loan and treasury stock (2,894) (2,035)
Earnings retained for use in business 15,845 17,884
-------- --------
Total stockholders' equity 13,365 18,610
-------- --------
Total liabilities and stockholders' equity $277,527 $283,390
======== ========
</TABLE>
- - - - -
*Less than $1 million
The accompanying notes are part of the financial statements.
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
----------------------------------------------
For the Periods Ended September 30, 2001 and 2000
(in millions)
Nine Months 2001 Nine Months 2000
---------------------------- ----------------------------
Financial Financial
Automotive Services Automotive Services
------------- ------------ ------------- -------------
(unaudited) (unaudited)
<s> <c> <c> <c> <c>
Cash and cash equivalents at January 1 $ 3,374 $ 1,477 $ 2,793 $ 1,588
Cash flows from operating activities before securities trading 5,059 11,123 10,891 13,089
Net sales of trading securities 6,443 109 4,041 151
------- -------- ------- --------
Net cash flows from operating activities 11,502 11,232 14,932 13,240
Cash flows from investing activities
Capital expenditures (3,994) (428) (4,884) (565)
Acquisitions of receivables and lease investments - (68,498) - (69,257)
Collections of receivables and lease investments - 36,053 - 39,834
Net acquisitions of daily rental vehicles - (1,864) - (2,482)
Purchases of securities (11,228) (566) (374) (415)
Sales and maturities of securities 11,026 615 29 412
Proceeds from sales of receivables and lease investments - 29,515 - 12,502
Net investing activity with Financial Services 116 - 92 -
Cash paid for acquisitions (Note 10) (1,935) (743) (2,487) (87)
Other 375 (111) 0 226
------- -------- ------- --------
Net cash used in investing activities (5,640) (6,027) (7,624) (19,832)
Cash flows from financing activities
Cash dividends (1,654) - (2,185) -
Value Enhancement Plan payments - - (5,440) -
Net purchases of Common Stock (1,347) - (185) -
Changes in short-term debt (2) (12,506) (841) (8,140)
Proceeds from issuance of other debt 189 31,123 1,917 31,397
Principal payments on other debt (146) (20,675) (823) (14,896)
Net debt repayments from discontinued operations - - 650 -
Net cash distribution to discontinued operations - - (85) -
Net financing activity with Automotive - (116) - (92)
Other 174 (212) 14 (409)
------- --------- ------- --------
Net cash (used in)/provided by financing activities (2,786) (2,386) (6,978) 7,860
Effect of exchange rate changes on cash (95) (13) (23) (294)
Net transactions with Automotive/Financial Services (228) 228 252 (252)
------- -------- ------- --------
Net increase in cash and cash equivalents 2,754 3,034 559 722
-------- -------- -------- --------
Cash and cash equivalents at September 30 $ 6,127 $ 4,511 $ 3,352 $ 2,310
======= ======== ======= ========
</TABLE>
The accompanying notes are part of the financial statements.
<PAGE>
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(unaudited)
1. Financial Statements - The financial data presented herein are unaudited,
but in the opinion of management reflect those adjustments necessary for a
fair statement of such information. Results for interim periods should not
be considered indicative of results for a full year. Reference should be
made to the financial statements contained in the registrant's Annual
Report on Form 10-K for the year ended December 31, 2000. For purposes of
Notes to Financial Statements, "Ford" or the "Company" means Ford Motor
Company and its majority owned subsidiaries unless the context requires
otherwise. Certain amounts for prior periods were reclassified to conform
with present period presentation.
2. Selected Automotive costs and expenses are summarized as follows
(in millions):
<TABLE>
<CAPTION>
Third Quarter Nine Months
------------------------- -----------------------
2001 2000 2001 2000
---------- ---------- ---------- ---------
<s> <c> <c> <c> <c>
Depreciation $632 $734 $1,989 $2,146
Amortization 482 574 1,832 1,776
Pension expense (benefit) (108) 74 (269) 87
</TABLE>
3. SFAS 133 ("Accounting for Derivative Instruments and Hedges") - Ford
adopted SFAS 133 on January 1, 2001. For further discussion on SFAS 133
refer to Note 3 in Form 10-Q for the quarterly period ended March 31, 2001.
Non-cash adjustments to income and to stockholders' equity for the third
quarter and nine months of 2001 were (in millions):
<TABLE>
<CAPTION>
Automotive Financial Services Total Company
--------------------- ---------------------- ------------------------
Third Nine Third Nine Third Nine
Quarter Months Quarter Months Quarter Months
--------- ---------- ---------- ---------- ------------ -----------
<s> <c> <c> <c> <c> <c> <c>
Income before income taxes a/ $ 33 $(134) $(20) (91) $ 13 $ (225)
Net income 22 (92) (13) (58) 9 (150)
Stockholders' equity b/ 201 (1,127)
</TABLE>
a/ Automotive recorded in cost of sales; Financial Services recorded in
operating and other expenses
b/ Recorded in accumulated other comprehensive income
4. Discontinued Operation - On June 28, 2000, Ford distributed 130 million
shares of Visteon Corporation ("Visteon"), which represented its 100%
ownership interest, by means of a tax-free spin-off in the form of a
dividend on Ford Common and Class B Stock. Ford's financial statements
reflect Visteon as a "discontinued operation".
5. Value Enhancement Plan - On August 7, 2000, the Company announced the final
results of its recapitalization, known as the Value Enhancement Plan
("VEP"). Under the VEP, Ford shareholders exchanged each of their old Ford
Common or Class B shares for one new Ford Common or Class B share, as the
case may be, plus, at their election, either $20 in cash, 0.748 additional
new Ford Common shares, or a combination of $5.17 in cash and 0.555
additional new Ford Common shares. As a result of the elections made by
shareholders under the VEP, the total cash elected was $5.7 billion and the
total number of new Ford Common and Class B shares that became issued and
outstanding was 1.893 billion. As a result of the VEP, approximately $1.2
billion was transferred from capital stock to capital in excess of par
value of stock.
In accordance with generally accepted accounting principles, prior period
shares and earnings per share amounts were not adjusted.
6. Income Per Share of Common and Class B Stock - The calculation of diluted
income per share of Common and Class B Stock takes into account the effect
of obligations, such as stock options, considered to be potentially
dilutive. Basic and diluted income per share were calculated using the
following (in millions):
<TABLE>
<CAPTION>
Third Quarter Nine Months
------------------------- -----------------------
2001 2000 2001 2000
---------- ---------- ---------- ---------
<s> <c> <c> <c> <c>
Average shares outstanding 1,812 1,649 1,823 1,354
Issuable and uncommitted ESOP shares (5) (6) (8) (7)
----- ----- ----- -----
Basic shares 1,807 1,643 1,815 1,347
Net dilutive effect of options 26 35 34 28
----- ----- ----- -----
Diluted shares 1,833 1,678 1,849 1,375
===== ===== ===== =====
</TABLE>
<PAGE>
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(unaudited)
7. Automotive Inventories are summarized as follows (in millions):
<TABLE>
<CAPTION>
September 30, December 31,
2001 2000
------------- ------------
<s> <c> <c>
Raw materials, work in process and supplies $2,626 $2,798
Finished products 4,484 4,716
------ ------
Total inventories $7,110 $7,514
====== ======
</TABLE>
8. Company-Obligated Mandatorily Redeemable Preferred Securities of a
Subsidiary Trust - The sole asset of Ford Motor Company Capital Trust I
(the "Trust"), which is the obligor on the Preferred Securities of such
Trust, is $632 million principal amount of 9% Junior Subordinated
Debentures due 2025 of Ford Motor Company.
9. Comprehensive Income - Other comprehensive income primarily reflects
foreign currency translation adjustments and adjustments related to SFAS
133 (Note 3). Total comprehensive income is summarized as follows (in
millions):
<TABLE>
<CAPTION>
Third Quarter Nine Months
-------------------------- ------------------------
2001 2000 2001 2000
----------- ----------- ----------- ----------
<s> <c> <c> <c> <c>
Net income (loss) $ (692) $ 888 $ (385) $ 2,390
Other comprehensive income (loss) 775 (979) (2,143) (2,057)
------- ------ ------- -------
Total comprehensive income (loss) $ 83 $ (91) $(2,528) $ 333
======= ====== ======= =======
</TABLE>
10. Acquisitions and Restructurings
Hertz Purchase - In March 2001, through a tender offer and a merger
transaction, Ford acquired (for a total price of $735 million) the common
stock of Hertz that it did not own, which represented about 18% of the
economic interest in Hertz.
Purchase of Land Rover Business - On June 30, 2000, Ford purchased the
Land Rover business from the BMW Group for approximately three billion
euros. Approximately two-thirds of the purchase price (equivalent of $1.9
billion at June 30, 2000) was paid at time of closing; the remainder will
be paid in 2005. The acquisition involves the entire Land Rover line of
products and related assembly and engineering facilities. It does not
include Rover's passenger car business or financial services business.
European Charges - Following an extensive business review of the Ford
Brand operations in Europe, the Company recorded a pre-tax charge in
Automotive cost of sales of $1,568 million in the second quarter of 2000.
This charge included $1.1 billion for asset impairments and $468 million
for restructuring costs. The effect on after-tax earnings was $1,019
million.
<PAGE>
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(unaudited)
11. Segment Information - Ford's business is divided into two business sectors
- Automotive and Financial Services (including Ford Credit and Hertz);
detail is summarized as follows (in millions):
<TABLE>
<CAPTION>
Financial Services Sector
----------------------------------
Auto Ford Other Elims/
Sector Credit Hertz Fin Svcs Other Total
Third Quarter ------------ ----------- --------- ------------ ----------- ------------
------------
<s> <c> <c> <c> <c> <c> <c>
2001
----
Revenues
External customer $ 28,554 $ 6,384 $ 1,364 $ 245 $ 5 $ 36,552
Intersegment 388 94 7 32 (521) -
-------- -------- ------- ------ ------- --------
Total Revenues $ 28,942 $ 6,478 $ 1,371 $ 277 $ (516) $ 36,552
======== ======== ======= ====== ======= ========
Net income (loss) $ (1,054) $ 376 $ 26 $ (44) $ 4 $ (692)
2000
----
Revenues
External customer $ 32,582 $ 5,948 $ 1,424 $ 94 $ 7 $ 40,055
Intersegment 760 43 8 11 (822) -
-------- -------- ------- ------ ------- --------
Total Revenues $ 33,342 $ 5,991 $ 1,432 $ 105 $ (815) $ 40,055
======== ======== ======= ====== ======= ========
Net income (loss) $ 391 $ 386 $ 143 $ (29) $ (3) $ 888
</TABLE>
<TABLE>
<CAPTION>
Financial Services Sector
-----------------------------------
Auto Ford Other Elims/
Sector Credit Hertz Fin Svcs Other Total
Nine Months ----------- ------------ ----------- ---------- ---------- ------------
------------
<s> <c> <c> <c> <c> <c> <c>
2001
----
Revenues
External customer $ 97,756 $ 18,988 $ 3,821 $ 728 $ 19 $121,312
Intersegment 2,932 334 21 104 (3,391) -
-------- -------- ------- ------ ------- --------
Total Revenues $100,688 $ 19,322 $ 3,842 $ 832 $(3,372) $121,312
======== ======== ======= ====== ======= ========
Income (loss) from continuing
operations $ (1,559) $ 1,136 $ 81 $ (45) $ 2 $ (385)
Total assets at September 30 $ 87,630 $174,318 $11,811 $3,768 $ - $277,527
2000
----
Revenues
External customer $106,123 $ 17,217 $ 3,826 $ 285 $ 26 $127,477
Intersegment 3,256 123 23 115 (3,517) -
-------- -------- ------- ------ ------- --------
Total Revenues $109,379 $ 17,340 $ 3,849 $ 400 $(3,491) $127,477
======== ======== ======= ====== ======= ========
Income (loss) from continuing
operations $ 2,995 $ 1,126 $ 303 $ (26) $ (65) $ 4,333
Total assets at September 30 $ 96,210 $169,894 $11,191 $4,990 $ - $282,285
</TABLE>
- - - - -
"Other Financial Services" data is an aggregation of miscellaneous
smaller Financial Services Sector business components, including Ford
Motor Land Development Corporation, Ford Leasing Development Company,
Ford Leasing Corporation and Granite Management Corporation.
"Elims/Other" data includes intersegment eliminations and minority
interests. Interest income for the operating segments in the Financial
Services Sector is reported as "Revenues".
</TEXT>
</DOCUMENT>