1st Quarter Results

Ford Motor Co 17 April 2002 Contact: Media: David Reuter 1.313.594.4410 dreuter@ford.com Securities Analysts: Anne Bork 1.313.323.8221 abork@ford.com Shareholder Inquiries: 1.800.555.5259 or 1.313.845.8540 stockinf@ford.com Media Information Center 1.800.665.1515 or 1.313.621.0504 media@ford.com Go to http://media.ford.com for news releases and high-resolution photographs. FORD REPORTS BETTER THAN EXPECTED FIRST QUARTER FINANCIAL RESULTS • First quarter loss of 6 cents per share, excluding unusual items, beats consensus estimate of a loss of 15 cents per share. • European automotive operations earn $117 million. • Automotive gross cash at $21.5 billion. • Revitalization Plan on track to meet or surpass 2002 earnings milestone. DEARBORN, Mich., April 17 - Ford Motor Company (NYSE: F) today reported a net loss of $800 million, or 45 cents per share, in the first quarter of 2002. Excluding unusual items related to Statement of Financial Accounting Standards (SFAS) Nos. 142 and 133, Ford lost $ 108 million, or 6 cents per share. Ford earned $1.13 billion, or 60 cents a share, before unusual items in the first quarter of 2001. Ford's first quarter revenues were $39.86 billion, a 6 percent decline from last year's first quarter. Worldwide vehicle unit sales in the 2002 first quarter were 1,678,000, down 7 percent from a year ago. 'Our first quarter performance shows that our Revitalization Plan efforts are taking hold and we are heading in the right direction,' said Bill Ford, chairman and CEO. 'While there is still a great deal of uncertainty in our industry, the general economic climate is improving and we are on schedule to meet or surpass our 2002 earnings milestone.' In the first quarter, Ford began the launch of several all-new or significantly freshened products across its brand portfolio, including the Ford Expedition and European Ford Fiesta, Lincoln Navigator and Lincoln Town Car, Mercury Grand Marquis, Jaguar S-Type R and Land Rover Range Rover. In addition, the company announced the return of the GT40 high-performance sports car, introduced key middle segment vehicles such as the Ford CrossTrainer and Ford Five Hundred and publicly debuted the Lincoln Aviator, Volvo XC90, Mercury Marauder and European Ford Fusion. Ford also benefited in the first quarter from strong sales of key new product introductions from Premier Automotive Group's Jaguar and Land Rover brands. The recently introduced Jaguar X-Type and Land Rover Freelander combined to make those brands No. 1 and No. 2, respectively, in year-to-date U.S. sales increases over the previous year. First quarter 2002 results include a $708 million non-cash after-tax charge for the transition to a new accounting standard for goodwill (SFAS No.142), which related to various investments in the automotive sector, and a $16 million non-cash after-tax benefit relating to the accounting standard for derivative instruments and hedging activities (SFAS No.133). The following discussion of our results excludes these unusual items, as well as any unusual items in our first quarter 2001 results: AUTOMOTIVE OPERATIONS Worldwide automotive operations lost $310 million in the first quarter, compared to a profit of $748 million year ago. Worldwide automotive revenues were $32.32 billion, compared with $34.65 billion a year ago. Automotive gross cash at March 31 totaled $21.5 billion, including $2 billion previously funded employee benefit expenses through a Voluntary Employee Beneficiary Association trust. North America: The first quarter loss in North America was $430 million. Earnings in the 2001 first quarter were $754 million. The decline was a result of significantly higher marketing costs and lower production. Europe: Ford earned $117 million in the first quarter in Europe, compared with earnings of $88 million a year ago. The increase is largely explained by the elimination of goodwill amortization due to SFAS No. 142. Continued cost reductions and other improvements offset lower sales due to declining industry and production ramp-up for the new Ford Fiesta. South America: Ford operations in South America lost $51 million, compared with a loss of $53 million a year ago. Results from the region continue to be affected by currency devaluations and weak economic conditions in Brazil and Argentina. Rest-of-World: Operations from the rest of the world earned a profit of $54 million, compared with a loss of $41 million in the 2001 first quarter. The improvement was primarily due to smaller losses at Mazda. FORD CREDIT Ford Credit earned $242 million in the first quarter, down from $406 million a year ago. Results were lower primarily due to the unfavorable impact of securitizations and higher actual credit losses, offset partially by improved financing margins and higher levels of managed receivables. Increased securitizations over the past 12 months resulted in lower owned receivables and related revenue, offset partially by higher income on retained interests, excess spread and servicing fees. Higher actual credit losses reflected weaker economic conditions compared with a year ago. HERTZ Hertz reported a first quarter loss of $48 million, compared with a loss of $4 million in the first quarter a year ago. The loss was mainly attributable to lower rental volume in the U.S. resulting from a decline in travel. OUTLOOK 'The U.S. economy is beginning to show signs of a recovery,' said Nick Scheele, Ford president and chief operating officer. 'As consumer confidence increases, we are well positioned with the many new products we are in the process of bringing to market.' Investors can hear a review of first quarter results by Martin Inglis, group vice president and chief financial officer, on the Internet at http://www.streetevents.com or http://www.shareholder.ford.com. The presentation will start at 9 a.m. EDT, April 17. Ford Motor Company is the world's second largest automaker, selling vehicles in 200 markets and with approximately 350,000 employees on six continents. Its automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mercury and Volvo. Its automotive-related services include Ford Credit, Hertz and Quality Care. 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 or other factors; lower-than-anticipated market acceptance of new or existing products; currency or commodity price fluctuations; economic difficulties in South America or Asia; the availability of fuel or higher fuel prices; a market shift from truck sales in the U.S.; lower-than-anticipated residual values for leased vehicles; a credit rating downgrade; labor or other constraints on our ability to restructure our business; increased safety, emissions, fuel economy or other regulation resulting in higher costs and/or sales restrictions; work stoppages at key Ford or supplier facilities or other interruptions of supplies; and the discovery of defects in vehicles resulting in delays in new model launches, recall campaigns, increased warranty costs or litigation, insufficient credit loss reserves; and our inability to implement the Revitalization Plan. Ford Motor Company SELECTED CONSOLIDATED DETAIL 2002 Compared with 2001 First Quarter 2002 2001 Worldwide vehicle unit sales of cars and trucks (in thousands) - North America 1,093 1,103 - Outside North America 585 702 Total 1,678 1,805 Sales and revenues (Mils.) - Automotive $ 32,321 $ 34,650 - Financial Services 7,536 7,796 Total $ 39,857 $ 42,446 Net income (Mils.) - Automotive $ (308) $ 689 - Financial services 216 370 Income before cumulative effect of change in accounting principle (92) 1,059 - Cumulative effect of change in accounting principle (708) - Total net income $ (800) $ 1,059 Adjusted net income before cumulative effect of change in accounting principle (Mils,) a/ $ (108) $ 1,131 Unusual items (Mils.) - SFAS 133 $ 16 $ (72) Capital expenditures (Mils.) - Automotive $ 1,537 $ 1,357 - Financial Services 181 131 Total $ 1,718 $ 1,488 Automotive capital expenditures as a percentage of sales 4.8% 3.9% Automotive net cash at December 31 (Mils.) - Cash and marketable securities $ 19,506 $ 15,767 - VEBA 2,027 3,379 Gross cash including VEBA 21,533 19,146 - Debt 13,916 12,036 Automotive net cash including VEBA $ 7,617 $ 7,110 AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK Income assuming dilution - Automotive $ (0.17) $ 0.36 - Financial Services 0.12 0.20 Subtotal (0.05) 0.56 - Cumulative effect of change in accounting principle (0.40) - Total $ (0.45) $ 0.56 Adjusted net income before cumulative effect of change in accounting principle a/ $ (0.06) $ 0.60 Unusual items - SFAS 133 $ 0.01 $ (0.04) a/ Excludes unusual items disclosed by the Company. Prior periods have been restated. Ford Motor Company and Subsidiaries VEHICLE UNIT SALES 2002 Compared with 2001 (in thousands) First Quarter 2002 2001 North America United States Cars 384 362 Trucks 603 653 Total United States 987 1,015 Canada 73 52 Mexico 33 36 Total North America 1,093 1,103 Europe Britain 155 175 Germany 79 105 Italy 50 63 France 24 42 Spain 42 40 Sweden 30 33 Other countries 77 113 Total Europe 457 571 South America Brazil 28 35 Argentina 4 8 Other countries 9 7 Total South America 41 50 Other international Australia 27 25 Taiwan 20 18 Other countries 40 38 Total other international 87 81 Total worldwide vehicle unit sales 1,678 1,805 Vehicle unit sales generally are reported worldwide on a 'where sold' basis and include sales of all Ford Motor Company units, as well as units manufactured by Ford and sold to other manufacturers. Prior period has been restated. Excludes SFAS 133 effect & Unusual items Ford Motor Company AUTOMOTIVE GEOGRAPHIC AND COST OF SALES DETAIL 2002 Compared With 2001 GEOGRAPHIC DATA 1st Quarter 2002 2001 02 B/(W) Than 01 PBT (Mils.) U.S. ($568) $825 ($1,393) Canada/Mexico (29) 278 (307) North America ($597) $1,103 ($1,700) Europe 177 138 39 South America (79) (81) 2 Rest of World 97 (31) 128 Worldwide ($402) $1,129 ($1,531) Net Income (Mils.) U.S. ($409) $580 ($989) Canada/Mexico (21) 174 (195) North America ($430) $754 ($1,184) Europe 117 88 29 South America (51) (53) 2 Rest of World 54 (41) 95 Worldwide ($310) $748 ($1,058) Sales (Mils.) U.S. $ 21,159 $ 22,099 ($940) Canada/Mexico 1,983 1,558 425 North America $ 23,142 $ 23,657 ($515) Europe 7,164 8,684 (1,520) South America 412 610 (198) Rest of World 1,603 1,699 (96) Worldwide $ 32,321 $ 34,650 ($2,329) COST OF SALES 1st Quarter 2002 2001 02 B/(W) Than 01 (Mils) (Mils) (Mils) Total Costs and Expenses $ 32,412 $ 33,231 $ 819 Less: Depreciation 590 675 85 Amortization 572 726 154 Selling and Admin 2,282 2,461 179 Postretirement Exp.* 488 377 (111) Net Cost of Sales $ 28,480 $ 28,992 $ 512 Memo: Gross Margin 11.9% 16.3% -4.4 pts * Now includes Benefit Expenses from Total Pension, Retiree Health Cars, and Retiree Life Insurance Ford Motor Company FIRST QUARTER 2002 DATA SHEET 2002 Compared with 2001 4th Qtr 2002 2001 2001 1st Qtr 1st Qtr Full year Market Share Data (%) U.S. Car 17.8% 16.1% 17.7% 17.7% Truck 27.0% 24.9% 27.4% 27.4% Total 22.8% 20.7% 22.6% 22.8% Europe Car 10.3% 11.7% 11.4% 11.0% Truck 8.1% 8.4% 9.1% 8.6% Total 10.2% 11.3% 11.1% 10.7% U.S. Total Marketing Coats (Ford/LM) -- Variable and Fixed (% of Gross Revenue) 16.7% 15.7% 12.2% 14.7% U.S. Sales Mix (Ford/LM) Fleet Sales (% of Total) 21% 28% 30% 25% Red Carpet Lease (% of Total) 7% 14% 18% 15% Red Carpet Lease (% of Retail) 9% 19% 26% 20% U.S. Inventory (Days' Supply) Car 63 59 59 63 Truck 59 66 75 59 Average 60 64 69 60 Avg. Portfolio Borrowing Rate Ford Credit (%) 5.6% 5.4% 6.5% 6.1% Worldwide Taxes Effective Tax Rate 32.5% 32.5% a/ 32.5% 32.5% Common and Class B Shares Outstanding (Mils.) Average - actual 1,810 1,807 1,840 1,820 Average - assuming full dilution 1,806 1,805 1,868 1,810 Period ended - actual 1,809 1,806 1,830 1,809 Common Stock price (per share) High $18.94 $17.29 $31.37 $31.46 Low 14.93 13.90 23.75 14.93 Cash Dividends (per share) $ 0.15 $ 0.10 $ 0.30 $ 1.05 a/ Includes dividends from Ford Motor Capital Trust Ford Motor Company 2002 NORTH AMERICAN PRODUCTION AND OVERSEAS SALES 2002 Planned First Second Quarter Quarter (000) (000) North American Production and Imports Car 392 435 Truck 660 745 North American Production 1,052 1,180 Mexican Domestic Units Incl. Above Incl. Above Imports (Volvo, Jaguar, Land Rover, Fiesta) 63 79 Total North America (Incl. Imports) 1,115 1,259 Overseas Vehicle Unit Sales 612 688 Ford Worldwide 1,727 1,947 Over/(Under)Prior North America Units: . Issue 2 0 . Quarter 57 144 . Year (13) 58 Percentage: . Issue 0% 0% . Quarter 5% 13% . Year (1)% 5% Overseas Units: . Issue 0 0 . Quarter (57) 76 . Year (87) (28) Percentage: . Issue 0% 0% . Quarter (9)% 12% . Year (12)% (4)% Worldwide Units: . Issue (2) 0 . Quarter 0 220 . Year (100) 30 Percentage: . Issue 0% 0% . Quarter 0% 13% . Year (5)% 2% Ford Motor Company and Subsidiaries CONSOLIDATED STATEMENT OF INCOME For the Periods Ended March 31, 2002 and 2001 (in millions) First Quarter 2002 2001 (unaudited) AUTOMOTIVE Sales $ 32,321 $ 34,650 Costs and expenses Cost of sales 30,074 30,815 Selling, administrative and other expenses 2,336 2,506 Total costs and expenses 32,410 33,321 Operating income/(loss) (89) 1,329 Interest income 112 255 Interest expense 362 367 Net interest expense (250) (112) Equity in net loss of affiliated companies (61) (178) Income/(loss) before income taxes - Automotive (400) 1,039 FINANCIAL SERVICES Revenues 7,536 7,796 Costs and expenses Interest expense 1,996 2,560 Depreciation 2,666 2,519 Operating and other expenses 1,559 1,437 Provision for credit and insurance losses 961 686 Total costs and expenses 7,182 7,202 Income before income taxes - Financial services 354 594 TOTAL COMPANY Income/(loss) before income taxes (46) 1,633 Provision/(credit) for income taxes (26) 571 Income/(loss) before minority interests (20) 1,062 Minority interests in net income of subsidiaries 72 3 Income/(loss) before cumulative effect of change in accounting principle (92) 1,059 Cumulative effect of change in accounting principle (708) - Net income/(loss) $ (800) $ 1,059 Income/(loss) attributable to Common and Class B Stock after preferred stock dividends $ (804) $ 1,055 Average number of shares of Common and Class B Stock outstanding 1,807 1,840 AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK Basic income Income/(loss) before cumulative effect of change in accounting principle $ (0.05) $ 0.58 Cumulative effect of change in accounting principle (0.40) - Net income/(loss) $ (0.45) $ 0.58 Diluted income; Income/(loss) before cumulative effect of change in accounting principle $ (0.05) $ 0.58 Cumulative effect of change in accounting principle (0.40) - Net income/(loss) $ (0.45) $ 0.56 Cash dividends $ 0.10 $ 0.30 Ford Motor company and Subsidiaries CONSOLIDATED BALANCE SHEET (in millions) March 31, December 31, 2002 2001 (unaudited) ASSETS Automotive Cash and cash equivalents $ 8,073 $ 4,079 Marketable securities 11,433 10,949 Total cash and marketable securities 19,506 15,028 Receivables 2,321 2,214 Inventories 7,068 6,191 Deferred income taxes 2,734 2,595 Other current assets 5,880 6,155 Current receivable from Financial Services 1,349 938 Total current assets 38,858 33,121 Equity in net assets of affiliated companies 2,399 2,450 Net property 33,537 33,121 Deferred income taxes 7,592 5,996 Goodwill 4,481 5,283 Other intangible assets 1,036 1,194 Other assets 6,514 7,154 Total Automotive assets 94,417 88,319 Financial Services Cash and cash equivalents 7,947 3,139 Investments in securities 598 628 Finance receivables, net 103,905 111,958 Net investment in operating leases 46,486 47,262 Retained interest in sold receivables 9,575 12,548 Goodwill and other intangible assets 1,352 1,353 Other assets 7,656 7,624 Receivable from Automotive 3,712 3,712 Total Financial Services assets 181,231 188,224 Total assets $ 275,648 $ 276,543 LIABILITIES AND STOCKHOLDERS' EQUITY Automotive Trade payables $ 16,191 $ 15,677 Other payables 3,649 4,227 Accrued liabilities 24,306 24,340 Debt payable within one year 235 302 Total current liabilities 44,381 44,546 Long-term debt 13,681 13,492 Other liabilities 33,281 30,868 Deferred income taxes 275 362 Payable to Financial Services 3,712 3,712 Total Automotive liabilities 95,330 92,980 Financial Services Payables 3,347 3,095 Debt 145,301 153,543 Deferred income taxes 9,922 9,703 Other liabilities and deferred income 7,308 7,826 Payable to Automotive 1,349 938 Total Financial Services liabilities 167,227 175,105 Company-obligated mandatorily redeemable preferred and mandatorily redeemable convertible preferred securities of a subsidiary trust holding solely junior subordinated debentures of the Company 5,672 672 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 18 18 shares issued) Class B Stock, par value $0.01 per share (71 million 1 1 shares issued) Capital in excess of par value of stock 6,008 6,001 Accumulated other comprehensive income (5,253) (5,913) ESOP loan and treasury stock (2,873) (2,823) Earnings retained for use in business 9,518 10,502 Total stockholders' equity 7,419 7,786 Total liabilities and stockholders' equity $ 275,648 $ 276,543 Ford Motor Company and Subsidiaries CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the periods Ended March 31, 2002 and 2001 (in millions) First Quarter 2002 First Quarter 2001 Financial Financial Automotive Services Automotive Services (unaudited) (unaudited) Cash and cash equivalents at January 1 $ 4,079 $ 3,139 $ 3,374 $ 1,477 Cash flows from operating activities before securities trading 2,338 3,831 3,122 1,903 Net sales/(purchases) of trading securities (437) (25) 119 (6) Net cash flows from operating activities 1,901 3,806 3,241 1,897 Cash flows from investing activities Capital expenditures (1,537) (181) (1,357) (131) Acquisitions of receivables and lease investments - (21,295) - (23,772) Collections of receivables and lease investments - 15,318 - 13,249 Net acquisitions of daily rental vehicles - (794) - (1,118) Purchases of securities (537) (185) (6,713) (204) Sales and maturities of securities 452 139 8,053 199 Proceeds from sales of receivables and lease investments - 15,399 - 7,174 Net investing activity with Financial Services (427) - (674) - Cash paid for acquisitions (37) - (122) (743) Other - 228 342 9 Net (used in)/provided by investing activities (2,086) 8,629 (471) (5,337) Cash flows from financing activities Cash dividends (184) - (557) - Net purchases of Common Stock (57) - (801) - Proceeds from mandatorily redeemable convertible preferred securities 4,900 - - - Changes in short-term debt (93) (7,402) (28) (4,861) Proceeds from issuance of other debt 107 8,143 201 14,386 Principal payments on other debt (60) (8,944) (76) (7,691) Net financing activity with Automotive - 427 - 674 Other (5) (231) 84 44 Net cash (used in)/provided by financing activities 4,608 (8,007) (1,177) 2,552 Effect of exchange rate changes on cash (18) (31) (63) (111) Net transactions with Automotive/Financial Services (411) 411 (951) 951 Net increase/(decrease) in cash and cash equivalents 3,994 4,808 579 (48) Cash and cash equivalents at March 31 $ 8,073 $ 7,947 $ 3,953 $ 1,429 This information is provided by RNS The company news service from the London Stock Exchange

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