2nd Quarter Results
Ford Motor Co
20 July 2006
NEWS
Contact:
Media: Equity Investment Fixed Income Shareholder Inquiries:
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ford@ford.com fixedinc@ford.com
FOR IMMEDIATE RELEASE
FORD REPORTS SECOND QUARTER 2006 FINANCIAL RESULTS
• Net loss of 7 cents per share, or $123 million, for the second quarter
of 2006.
• Loss from continuing operations, excluding special items, of 3 cents
per share, or $48 million.*
• Strong liquidity with total automotive cash, including cash equivalents,
marketable securities and loaned securities, at $23.6 billion.
• Ford Credit pre-tax profit of $656 million.
DEARBORN, Mich., July 20, 2006 - Ford Motor Company (NYSE: F) today reported a
net loss of 7 cents per share, or $123 million, for the second quarter of 2006.
This compares with net income of 47 cents per share, or $946 million, in the
second quarter of 2005.
Ford's second-quarter loss from continuing operations, excluding special items,
was 3 cents per share, or $48 million, compared with a profit of 47 cents per
share, or $936 million, in the same period a year ago.*
Ford's second-quarter total sales and revenue was $42 billion, down $2.5 billion
from a year ago.
* Earnings per share from continuing operations, excluding special items, is
calculated on a basis that includes pre-tax profit and provision for taxes and
minority interest. See table following 'Safe Harbor/Risk Factors' for the
nature and amount of these special items and a reconciliation to GAAP.
'We've seen an improvement in North America results in the second quarter, but
the external factors we face aren't going to get any easier,' said Chairman and
Chief Executive Officer Bill Ford. 'Mark Fields (executive vice president and
president - The Americas) and his team have been working on plans to accelerate
their efforts. Within the next 60 days, we'll be in a position to discuss the
additional actions we will be taking.'
Special items reduced earnings by 4 cents per share in the second quarter. The
pre-tax effect of these items included:
o A favorable adjustment of $146 million, or 5 cents per share, to the
previously announced first-quarter $1.7 billion special charge pertaining
to expected layoff and jobs bank benefits and voluntary termination
packages. This adjustment is based on recent agreements at the Atlanta
Assembly Plant and the St. Louis Assembly Plant for buyouts and employee
relocation.
o A charge of $171 million, or 6 cents per share, associated with additional
personnel reduction programs at facilities other than those being idled,
as well as a related charge of $315 million, or 11 cents per share,
associated with pension curtailments related to second-quarter buyouts. The
pension curtailment charge represents the impact of earlier retirements,
enhanced benefits, and the accelerated recognition of future service costs
associated with our U.S. hourly pension plan.
o Other gains of $148 million, or 8 cents per share, primarily associated
with our equity interest in a non-recurring gain that Mazda realized on
the transfer of its pension liabilities back to the Japanese government.
Year-to-date highlights included:
o Continued strong performance of Ford Fusion, Mercury Milan and Lincoln
Zephyr in North America.
o Significant warranty enhancements to our 2007-model Ford, Lincoln and
Mercury vehicles sold in the United States and Canada, as well as
increased standardization of customer-valued safety features.
o Court approval of the U.A.W.-Ford health care agreement.
o Successful introduction of the all-new S-MAX, new Galaxy, and new Transit
in Europe.
o Successful launch of the all-new Jaguar XK Coupe and Convertible,
continued strong global sales growth at Land Rover and Aston Martin, and
positive initial reception of the new Volvo S80 sedan.
o Continued strong year-to-date sales growth in major international markets,
including a 100 percent increase in China, and a 75 percent increase in
India.
Executive Vice President and Chief Financial Officer Don Leclair said, 'Although
we've made progress on a number of fronts, clearly we have more to do. This
includes maintaining our focus on improving our quality, reducing our costs and
maintaining our strong liquidity as we respond to the tougher operating
environment we face.'
The following discussion of the results of our Automotive sector and Automotive
business units is on a basis that excludes special items. See table following
'Safe Harbor/Risk Factors' for the nature and amount of these special items and
a reconciliation to GAAP.
AUTOMOTIVE SECTOR
On a pre-tax basis, worldwide Automotive sector losses in the second quarter
were $808 million. This compares with a pre-tax loss of $245 million during the
same period a year ago.
Worldwide automotive sales for the second quarter declined to $37.7 billion from
$38.7 billion in the same period last year. Worldwide vehicle unit sales in the
quarter were 1,732,000, up from 1,718,000 a year ago.
Total cash, including cash equivalents, marketable securities and loaned
securities, at June 30, 2006 was $23.6 billion, down from $23.7 billion at the
end of the first quarter.
THE AMERICAS
For the second quarter, The Americas reported a pre-tax loss of $702 million,
compared with a pre-tax loss of $819 million in the same period a year ago.
North America: In the second quarter, Ford's North America automotive operations
reported a pre-tax loss of $797 million, compared with a pre-tax loss of $907
million a year ago. The improvement is more than explained by cost reductions in
most areas of the business, partially offset by a mix shift from trucks to
passenger cars, higher incentives and adverse foreign currency exchange. Sales
were $19.2 billion, down from $19.9 billion for the same period a year ago.
South America; Ford's South America automotive operations reported a
second-quarter pre-tax profit of $95 million, an improvement from a pre-tax
profit of $88 million a year ago. The improvement was more than explained by
higher industry volume. Sales for the second quarter improved to $1.3 billion
from $1 billion in 2005.
INTERNATIONAL OPERATIONS
In the second quarter, International Operations reported a pre-tax loss of $21
million, compared with a pretax profit of $176 million in second quarter 2005.
FORD EUROPE AND PREMIER AUTOMOTIVE GROUP (PAG)
The combined second-quarter pre-tax loss for Ford Europe and PAG automotive
operations was $57 million, compared with a pre-tax profit of $83 million in the
same period a year ago.
Ford Europe: Ford Europe's second-quarter pre-tax profit was $105 million
compared with a pre-tax profit of $66 million during the 2005 period. The
improvement was explained by cost reductions, primarily in material costs.
Unfavorable market mix of vehicle sales and lower net pricing were partial
offsets. During the second quarter, Ford Europe's sales were $7.4 billion,
compared with $7.9 billion during second quarter 2005.
Premier Automotive Group (PAG): PAG reported a pre-tax loss of $162 million for
the second quarter, compared with a pre-tax profit of $17 million for the same
period in 2005. The decline is more than explained by the impact of the
expiration of favorable hedges that were put in place in previous years,
adjustments to warranty accruals for prior models, and lower market share at
Volvo in advance of new model introductions. These factors were partially offset
by favorable product and market mix, driven largely by the success of new
products at Land Rover, Jaguar and Aston Martin. Second-quarter sales for PAG
were $7.8 billion, compared with $7.9 billion a year ago.
ASIA PACIFIC AND AFRICA/MAZDA
In the second quarter, Asia Pacific and Africa/Mazda reported a combined pre-tax
profit of $36 million, compared with a pre-tax profit of $93 million in 2005.
Asia Pacific and Africa: For the second quarter, Asia Pacific and Africa
reported a pre-tax profit of $4 million, compared with a pre-tax profit of
$36 million a year ago. Lower Ford Falcon volumes and weaker industry volumes in
traditional markets were partially offset by cost reductions. Sales were
$1.8 billion, compared with $2 billion in 2005.
Mazda: During the second quarter of 2006, Ford's share of Mazda pre-tax profits
and associated operations was $32 million; compared with $57 million during the
same period a year ago. The decline is more than explained by the non-recurrence
of gains during the second quarter of 2005 on our investment in Mazda's
convertible bonds, which have now been entirely converted to equity.
OTHER AUTOMOTIVE
Second-quarter results included a pre-tax loss of $85 million in Other
Automotive, compared with a profit of $398 million a year ago. The year-over-year
decline is more than explained by the non-recurrence of tax-related interest
adjustments, partially offset by higher interest income from the company's cash
portfolio reflecting higher short-term interest rates and higher average cash
balances,
FINANCIAL SERVICES SECTOR
For the second quarter, Financial Services sector earned a pre-tax profit of
£646 million, compared with pre-tax profits of $1.3 billion a year ago.
Ford Motor Credit Company: Ford Motor Credit Company reported net income of
$441 million in the second quarter of 2006, down $299 million from earnings of
$740 million a year earlier. On a pre-tax basis from continuing operations, Ford
Motor Credit earned $656 million in the second quarter, compared with $1.2
billion in the previous year. The decrease in earnings primarily reflected
higher borrowing costs, the impact of lower average receivable levels, lower
credit loss reserve reductions and higher depreciation expense.
THIRD-QUARTER PRODUCTION VOLUMES
North America third-quarter production is projected at 670,000 units, down
58,000 units on a year-over-year basis, and 40,000 units less than what was
previously announced. This change from the prior level is more than explained by
lower truck production, reflecting our intention to maintain appropriate dealer
inventory levels. Ford Europe production is projected at 410,000 units, up
38,000 units from last year, primarily reflecting the timing of vacation
shutdowns. PAG production is projected at 150,000 units, down 3,000 units from
last year.
SECOND-QUARTER CONFERENCE CALL DETAILS
Ford Motor Company will release second-quarter 2006 financial results at 7 a.m.
EDT on Thursday, July 20. The following briefings will be held after the
announcement:
At 9 a.m. EDT, Chairman and CEO Bill Ford and Executive Vice President and CFO
Don Leclair will host a conference call for news media and analysts to discuss
second-quarter financial results.
Following the earnings call, at 11 a.m. EDT, Ford Vice President and Treasurer
Ami Marie Petach, Ford Motor Credit Company Vice Chairman and CFO K.R, Kent, and
Ford Vice President and Controller Jim Gouin will host a conference call for
fixed income analysts and investors.
The presentations (listen-only) and supporting materials will be available on
the Internet at www.shareholderSord.com. Representatives of the news media and
the investment community participating by teleconference will have the
opportunity to ask questions following the presentations.
Access Information - Thursday, July 20
Toll Free: 800-706-7741
International: 617-614-3471
Earnings: 9:00 a.m. EDT
Earnings Passcode: 'Ford Earnings Call'
Fixed Income: 11:00 a.m. EDT
Fixed Income Passcode: 'Ford Fixed Income'
Replays - Available through Thursday, July 27
www.shareholder, ford, com
Toll Free: 888-286-8010
International: 617-801-6888
Passcodes:
Earnings: 29481628
Fixed Income: 55865600
Ford Motor Company, a global automotive industry leader based in Dearborn,
Mich., manufactures and distributes automobiles in 200 markets across six
continents. With about 300,000 employees and more than 100 plants worldwide, the
company's core and affiliated automotive brands include Aston Martin, Ford,
Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related
services include Ford Motor Credit Company.
Statements included or incorporated by reference herein may constitute
'forward-looking statements' within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are based on
expectations, forecasts and assumptions by our management and involve a number
of risks, uncertainties, and other factors that could cause actual results to
differ materially from those stated, including, without limitation:
o Continued decline in market share;
o Continued or increased price competition resulting from industry
overcapacity, currency fluctuations or other factors;
o A market shift (or an increase in or acceleration of market shift) away
from sales of trucks or sport utility vehicles, or from sales of other
more profitable vehicles, in the United States;
o A significant decline in industry sales, particularly in the United States
or Europe, resulting from slowing economic growth, geo-political events
(e.g., an escalation or expansion of armed conflict in or beyond the
Middle East) or other factors;
o Lower-than-anticipated market acceptance of new or existing products;
o Continued or increased high prices for or reduced availability of fuel;
o Currency or commodity price fluctuations;
o Adverse effects from the bankruptcy or insolvency of, change in ownership
or control of, or alliances entered into by a major competitor;
o Economic distress of suppliers that has in the past and may in the future
require us to provide financial support or take other measures to ensure
supplies of components or materials;
o Work stoppages at Ford or supplier facilities or other interruptions of
supplies;
o Single-source supply of components or materials;
o Labor or other constraints on our ability to restructure our business;
o Worse-tban-assumed economic and demographic experience for our
postretirement benefit plans (e.g., discount rates, investment returns,
and health care cost trends);
o The discovery of defects in vehicles resulting in delays in new model
launches, recall campaigns or increased warranty costs;
o Increased safety, emissions, fuel economy or other (e.g., pension funding)
regulation resulting in higher costs, cash expenditures, and/or sales
restrictions;
o Unusual or significant litigation or governmental investigations arising
out of alleged defects hi our products or otherwise;
o A change in our requirements for parts or materials where we have entered
into long-term supply arrangements that commit us to purchase minimum or
fixed quantities of certain parts or materials, or to pay a minimum amount
to the seller ('take-or-pay contracts');
o Inability to access debt or securitization markets around the world at
competitive rates or in sufficient amounts due to additional credit rating
downgrades or otherwise;
o Higher-than-expected credit losses;
o Increased competition from banks or other financial institutions seeking
to increase their share of financing Ford vehicles;
o Changes in interest rates;
o Collection and servicing problems related to finance receivables and net
investment in operating leases;
o Lower-than-anticipated residual values or higher-than-expected return
volumes for leased vehicles;
o New or increased credit, consumer or data protection or other regulations
resulting in higher costs and/or additional financing restrictions; and
o Inability to implement the Way Forward plan.
We cannot be certain that any expectation, forecast or assumption made by
management in preparing these forward-looking statements will prove accurate, or
that any projection will be realized. It is to be expected that there may be
differences between projected and actual results. Our forward-looking statements
speak only as of the date of their initial issuance, and we do not undertake any
obligation to update or revise publicly any forward-looking statement, whether
as a result of new information, future events or otherwise. For additional
discussion, see 'Item 1A. Risk Factors' in our 2005 10-K Report.
TOTAL COMPANY 2006 SECOND QUARTER INCOME FROM CONTINUING OPERATIONS COMPARED
WITH NET INCOME
Second Quarter
Earnings After-Tax Pre-Tax
Per Share* Profit Profit
(Mils.) (Mils.)
__________________________________
lncome/(Loss) from Continuing Operations $ (0.03) $ (48) $ (162)
Excluding Special Items
Special Items
• Jobs Bank/Employee Separation Programs $ 0.05 $ 95 $ 146
• Additional Personnel Reduction Programs (0.06) (111) (171)
• Pension Curtailment Charges (0.11) (205) (315)
• Other Gains (Primarily Mazda Pension 0.08 144 148
Adjustment) __________________________________
Total Special Items $ (0.04) $ (77) $ (192)
__________________________________
Income/(Loss) from Continuing Operations $ (0.07) $ (125) $ (354)
__________________________________
Memo: Total Net lncome/(Loss) $ (0.07) $ (123)
* Earnings per share from continuing operations is calculated on a basis that
includes pre-tax profit, provision for taxes, and minority interest;
additional information regarding the method of calculating earnings per share
is available in the materials supporting the July 20, 2006, conference calls
at wmv.siiareholder. ford.com.
FORD MOTOR COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
For the Periods Ended June 30, 2006 and 2005
(in millions, except per share amounts)
Second Quarter First Half
2006 2005 2006 2005
(unaudited) (unaudited)
Sales and revenues
Automotive sales $37,747 $38,685 $74,732 $78,017
Financial Services
revenues 4,218 5,863 8,288 11,667
Total sales and
revenues 41,965 44,548 83,020 89,684
Costs and expenses
Automotive cost of
sales 35,964 36,713 72,638 72,271
Selling, administrative
and other expenses 4,631 6,127 9,223 12,217
Interest expense 2,178 1,719 4,197 3,683
Financial Services
provision for credit
and insurance losses 61 (17) 96 168
Total costs and
expenses 42,834 44,542 86,154 88,339
Automotive interest
income and other
non-operating income/
(expense), net 310 651 525 804
Automotive equity in net
income/(loss) of
affiliated companies 205 69 284 126
Income/(loss) before
income taxes (354) 726 (2,325) 2,275
Provision for/(benefit
from) income taxes (248) (301) (1,091) 13
Income/(loss) before
minority interests (106) 1,027 (1,234) 2,262
Minority interests in
net income/(loss) of
subsidiaries 19 84 78 142
Income/(loss) from
continuing operations (125) 943 (1,312) 2,120
Income/(loss) from
discontinued operations 2 3 2 38
Net income/(loss) $(123) $946 $(1,310) $2,158
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
Basic income/(loss)
Income/(loss) from
continuing
operations $(0.07) $0.51 $(0.70) $1.16
Income/(loss) from
discontinued
operations - - - 0.02
Net income/(loss) $(0.07) $0.51 $(0.70) $1.18
Diluted income/(loss)
Income/(loss) from
continuing
operations $(0.07) $0.47 $(0.70) $1.05
Income/(loss) from
discontinued
operations - - - 0.01
Net income/(loss) $(0.07) $0.47 $(0.70) $1.06
Cash dividends $0.10 $0.10 $0.20 $0.20
FORD MOTOR COMPANY AND SUBSIDIARIES
SECTOR STATEMENT OF INCOME
For the Periods Ended June 30, 2006 and 2005
(in millions, except per share amounts)
Second Quarter First Half
2006 2005 2006 2005
(unaudited) (unaudited)
AUTOMOTIVE
Sales $37,747 $38,685 $74,732 $78,017
Costs and expenses
Cost of sales 35,964 36,713 72,638 72,271
Selling, administrative
and other expenses 2,950 3,076 5,924 6,185
Total costs and
expenses 38,914 39,789 78,562 78,456
Operating income/(loss) (1,167) (1,104) (3,830) (439)
Interest expense 348 187 694 589
Interest income and other
non-operating income/
(expense), net 310 651 525 804
Equity in net income/
(loss) of affiliated
companies 205 69 284 126
Income/(loss) before
income taxes
- Automotive (1,000) (571) (3,715) (98)
FINANCIAL SERVICES
Revenues 4,218 5,863 8,288 11,667
Costs and expenses
Interest expense 1,830 1,532 3,503 3,094
Depreciation 1,291 1,540 2,499 3,054
Operating and other
expenses 390 1,511 800 2,978
Provision for credit and
insurance losses 61 (17) 96 168
Total costs and
expenses 3,572 4,566 6,898 9,294
Income/(loss) before
income taxes
- Financial Services 646 1,297 1,390 2,373
TOTAL COMPANY
Income/(loss) before
income taxes (354) 726 (2,325) 2,275
Provision for/(benefit
from) income taxes (248) (301) (1,091) 13
Income/(loss) before
minority interests (106) 1,027 (1,234) 2,262
Minority interests in
net income/(loss) of
subsidiaries 19 84 78 142
Income/(loss) from
continuing operations (125) 943 (1,312) 2,120
Income/(loss) from
discontinued operations 2 3 2 38
Net income/(loss) $(123) $946 $(1,310) $2,158
AMOUNTS PER SHARE OF
COMMON AND CLASS B STOCK
Basic income/(loss)
Income/(loss) from
continuing operations $(0.07) $0.51 $(0.70) $1.16
Income/(loss) from
discontinued operations - - - 0.02
Net income/(loss) $(0.07) $0.51 $(0.70) $1.18
Diluted income/(loss)
Income/(loss) from
continuing
operations $(0.07) $0.47 $(0.70) $1.05
Income/(loss) from
discontinued operations - - - 0.01
Net income/(loss) $(0.07) $0.47 $(0.70) $1.06
Cash dividends $0.10 $0.10 $0.20 $0.20
FORD MOTOR COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions)
June 30, December 31,
2006 2005
(unaudited)
ASSETS
Cash and cash equivalents $27,985 $28,406
Marketable securities 12,600 10,672
Loaned securities 33 3,461
Finance receivables, net 106,554 105,975
Other receivables, net 9,194 8,522
Net investment in operating leases 31,884 27,099
Retained interest in sold receivables 1,150 1,420
Inventories 12,116 10,271
Equity in net assets of affiliated companies 2,751 2,579
Net property 41,639 40,706
Deferred income taxes 6,879 5,881
Goodwill and other intangible assets 6,392 5,945
Assets of discontinued/held-for-sale operations - 5
Other assets 17,945 18,534
Total assets $277,122 $269,476
LIABILITIES AND STOCKHOLDERS' EQUITY
Payables $23,595 $22,813
Accrued liabilities and deferred revenue 78,444 72,977
Debt 153,478 154,332
Deferred income taxes 5,800 5,275
Total liabilities 261,317 255,397
Minority interests 1,054 1,122
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 4,636 4,872
Accumulated other comprehensive income/(loss) (262) (3,562)
Treasury stock (420) (833)
Earnings retained for use in business 10,778 12,461
Total stockholders' equity 14,751 12,957
Total liabilities and stockholders' equity $277,122 $269,476
Prior year amounts have been revised to reflect a reclassification between
Financial Services sector Cash and cash equivalents and Marketable securities
as of December 31, 2005.
FORD MOTOR COMPANY AND SUBSIDIARIES
SECTOR BALANCE SHEET
(in millions)
June 30, December 31,
2006 2005
(unaudited)
ASSETS
Automotive
Cash and cash equivalents $14,700 $13,388
Marketable securities 8,887 6,860
Loaned securities 33 3,461
Total cash, marketable and loaned securities 23,620 23,709
Receivables, net 3,496 3,061
Inventories 12,116 10,271
Deferred income taxes 832 1,187
Other current assets 9,397 8,177
Total current assets 49,461 46,405
Equity in net assets of affiliated companies 1,949 1,756
Net property 41,328 40,378
Deferred income taxes 11,855 11,049
Goodwill and other intangible assets 6,374 5,928
Assets of discontinued/held-for-sale operations - 5
Other assets 9,679 8,308
Total Automotive assets 120,646 113,829
Financial Services
Cash and cash equivalents 13,285 15,018
Marketable securities 3,713 3,812
Finance receivables, net 112,252 111,436
Net investment in operating leases 26,073 22,951
Retained interest in sold receivables 1,150 1,420
Goodwill and other intangible assets 18 17
Other assets 5,943 7,457
Receivable from Automotive 759 83
Total Financial Services assets 163,193 162,194
Intersector elimination (759) (83)
Total assets $283,080 $275,940
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive
Trade payables $18,393 $16,554
Other payables 3,253 4,222
Accrued liabilities and deferred revenue 31,743 28,733
Deferred income taxes 953 804
Debt payable within one year 1,269 978
Current payable to Financial Services 52 83
Total current liabilities 55,663 51,374
Long-term debt 16,450 16,900
Other liabilities 41,401 38,639
Deferred income taxes 563 586
Non-current payable to Financial Services 707 -
Total Automotive liabilities 114,784 107,499
Financial Services
Payables 1,949 2,037
Debt 135,759 136,454
Deferred income taxes 10,242 10,349
Other liabilities and deferred income 5,300 5,605
Total Financial Services liabilities 153,250 154,445
Minority interests 1,054 1,122
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 4,636 4,872
Accumulated other comprehensive income/(loss) (262) (3,562)
Treasury stock (420) (833)
Earnings retained for use in business 10,778 12,461
Total stockholders' equity 14,751 12,957
Intersector elimination (759) (83)
Total liabilities and stockholders' equity $283,080 $275,940
Prior year amounts have been revised to reflect a reclassification between
Financial Services sector Cash and cash equivalents and Marketable securities as
of December 31, 2005.
FORD MOTOR COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the Periods Ended June 30, 2006 and 2005
(in millions)
2006 2005
(unaudited)
Cash flows from operating activities of
continuing operations
Net cash (used in)/provided by operating
activities $10,295 $14,582
Cash flows from investing activities of
continuing operations
Capital expenditures (3,403) (3,572)
Acquisitions of retail and other finance
receivables and operating leases (29,407) (28,951)
Collections of retail and other finance
receivables and operating leases 21,021 25,150
Net acquisitions of daily rental vehicles - (2,997)
Purchases of securities (11,170) (3,044)
Sales and maturities of securities 11,247 2,395
Proceeds from sales of retail and other
finance receivables and operating leases 2,947 12,506
Proceeds from sale of businesses 54 2,070
Cash paid for acquisitions (37) (1,296)
Transfer of cash balances upon disposition of
discontinued/held-for-sale operations (4) (4)
Other 49 71
Net cash (used in)/provided by investing
activities (8,703) 2,328
Cash flows from financing activities of
continuing operations
Cash dividends (374) (367)
Sales of Common Stock 234 447
Purchases of Common Stock (97) (263)
Changes in short-term debt 378 834
Proceeds from issuance of other debt 23,900 14,765
Principal payments on other debt (26,433) (25,769)
Other 134 (6)
Net cash (used in)/provided by financing
activities (2,258) (10,359)
Effect of exchange rate changes on cash 241 (526)
Net increase/(decrease) in cash and cash
equivalents from continuing operations (425) 6,025
Cash flows from discontinued operations
Cash flows from operating activities of
discontinued operations - 70
Cash flows from investing activities of
discontinued operations - (50)
Cash flows from financing activities of
discontinued operations - -
Net increase/(decrease) in cash and cash
equivalents $(425) $6,045
Cash and cash equivalents at January 1 $28,406 $22,828
Cash and cash equivalents of discontinued/
held-for-sale operations at January 1 4 681
Net increase/(decrease) in cash and cash
equivalents (425) 6,045
Less: cash and cash equivalents of discontinued/
held-for-sale operations at June 30 - (722)
Cash and cash equivalents at June 30 $27,985 $28,832
Prior year amounts have been revised to reflect a reclassification between
Financial Services sector Cash and cash equivalents and Marketable securities
and to separately disclose cash flows from discontinued operations.
FORD MOTOR COMPANY AND SUBSIDIARIES
CONDENSED SECTOR STATEMENT OF CASH FLOWS
For the Periods Ended June 30, 2006 and 2005
(in millions)
First Half 2006 First Half 2005
Financial Financial
Automotive Services Automotive Services
(unaudited) (unaudited)
Cash flows from operating
activities of continuing
operations
Net cash (used in)/provided
by operating
activities $5,297 $4,228 $5,093 $5,322
Cash flows from investing
activities
Capital expenditures (3,381) (22) (3,347) (225)
Acquisitions of retail
and other finance
receivables and
operating leases - (29,407) - (28,951)
Collections of retail
and other finance
receivables and
operating leases - 20,923 - 24,979
Net (increase)/decrease
of wholesale
receivables - 868 - 599
Net acquisitions of
daily rental vehicles - - - (2,997)
Purchases of
securities (2,478) (8,692) (2,149) (895)
Sales and maturities
of securities 2,300 8,947 1,883 512
Proceeds from sales of
retail and other
finance receivables
and operating leases - 2,947 - 12,506
Proceeds from sales of
wholesale receivables - - - 3,739
Proceeds from sale
of businesses 54 - 29 2,041
Transfer of cash
balances upon disposition
of discontinued/
held-for-sale
operations (4) - 1 (5)
Investing activity from
Financial Services 552 - 1,402 -
Investing activity to
Financial Services (1,400) - - -
Cash paid for
acquisitions (37) - (1,296) -
Other 11 38 (11) 82
Net cash (used in)/
provided by investing
activities (4,383) (4,398) (3,488) 11,385
Cash flows from financing
activities
Cash dividends (374) - (367) -
Sales of Common Stock 234 - 447 -
Purchases of Common
Stock (97) - (263) -
Changes in short-term
debt 239 139 158 676
Proceeds from issuance of
other debt 175 23,725 84 14,681
Principal payments on
other debt (550) (25,883) (595) (25,174)
Financing activity from
Automotive - 1,400 - -
Financing activity to
Automotive - (552) - (1,402)
Other 150 (16) (4) (2)
Net cash (used in)/
provided by financing
activities (223) (1,187) (540) (11,221)
Effect of exchange rate
changes on cash 4 237 (39) (487)
Net change in intersector
receivables/payables and
other liabilities 613 (613) (356) 356
Net increase/(decrease)
in cash and cash
equivalents from
continuing operations 1,308 (1,733) 670 5,355
Cash flows from discontinued
operations
Cash flows from operating
activities of discontinued
operations - - (1) 71
Cash flows from investing
activities of discontinued
operations - - 16 (66)
Cash flows from financing
activities of discontinued
operations - - - -
Net increase/(decrease) in
cash and cash
equivalents $1,308 $(1,733) $685 $5,360
Cash and cash equivalents
at January 1 $13,388 $15,018 $10,139 $12,689
Cash and cash equivalents
of discontinued/held-for-
sale operations at
January 1 4 - 2 679
Net increase/(decrease)
in cash and cash
equivalents 1,308 (1,733) 685 5,360
Less: cash and cash
equivalents of
discontinued/held-for-
sale operations at
June 30 - - (18) (704)
Cash and cash equivalents
at June 30 $14,700 $13,285 $10,808 $18,024
Prior year amounts have been revised to reflect a reclassification between
Financial Services sector Cash and cash equivalents and Marketable securities
and to separately disclose cash flows from discontinued operations.
This information is provided by RNS
The company news service from the London Stock Exchange