Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor — Q1 2005 Earnings Presentation
38 slides from Ford Mtr Co Del's earnings presentation, Apr 20, 2005
Slide 1: First Quarter 2005 Earnings Review
FIRST QUARTER 2005 EARNINGS REVIEW APRIL 20, 2005
Slide 2: Total Company First Quarter 2005 Summary
TOTAL COMPANY FIRST QUARTER 2005 SUMMARY Earnings per share of $0.62 from continuing operations, excluding special items, and net income of $0.60 per share* All Automotive Operations profitable except for P.A.G. North American environment became more challenging Strong performance continues at Ford
Slide 3: Total Company First Quarter Results
Earnings Per Share Net Income $ 0.60 $(0.34 ) Continuing Ops. -- Excl. Special Items 0.62 (0.33 ) After-Tax Profits (Mils.) Net Income $1,212 $(740 ) Continuing Ops. -- Excl. Special Items 1,260 (707 ) Memo: Tax Rate 21.1 % (8.1 ) Pts. Pre-Tax Profits (Mils.) Incl. Special Items $1,549 $(1,314 ) Exc
Slide 4: Income from Continuing Operations Compared with Net Income
TOTAL COMPANY 2005 FIRST QUARTER INCOME FROM CONTINUING OPERATIONS COMPARED WITH NET INCOME Memo: Pre-Tax Profit (Mils.) First Quarter Earnings Per Share* Income from Continuing Operations Excluding Special Items $ 0.62 $1,260 $1,655 Special Items - Fuel Cell Technology Charges (0.02 ) (39 ) (39 ) -
Slide 5: Total Company First Quarter Pre-Tax Profit by Sector
TOTAL COMPANY 2005 FIRST QUARTER PRE-TAX PROFIT BY SECTOR* * Excluding special items; see Slide 3 and Appendix (page 3) for reconciliation to GAAP Financial Services Automotive Memo: B / (W) 2004 $(1,220) $(1,253) $33 (Mils.) Total Total Auto Fin Svcs 2Q 1655 579 1076 $1,655 $1,076 $579
Slide 6: Automotive Pre-Tax Profit Compared with 2004
* Excluding special items; see Slide 3 and Appendix (page 3) for reconciliation to GAAP AUTOMOTIVE SECTOR 2005 FIRST QUARTER AUTOMOTIVE PRE-TAX PROFIT COMPARED WITH 2004* (Bils.) 2204 2005 Volume Revenue Cost Exchange Other 1.831 0.579 -0.6 0.1 -0.3 -0.3 -0.1 $0.1 $(0.6) Net Pricing Cost Perform. $(
Slide 7: First Quarter Cost Performance
AUTOMOTIVE SECTOR FIRST QUARTER COST PERFORMANCE* Quality Mfg. Eng Overhead Net Product D&A Pension -0.1 0.4 0 -0.3 -0.1 -0.2 2005 Costs B / (W) 2004 (Bils.) Net Product Costs Quality Related Pension / Healthcare Deprec. / Amort. Mfg. / Engrg. Overhead * At constant volume, mix, and exchange; exclud
Slide 8: First Quarter Profit/(Loss) by Segment
AUTOMOTIVE SECTOR 2005 FIRST QUARTER PROFIT / (LOSS) BY SEGMENT* Memo: B / (W) 2004 $(1,253) $(1,238) $(34) $15 $4 * Excluding special items; see Slide 3 and Appendix (page 3) for reconciliation to GAAP World- wide Other Automotive WW Americas Europe/PAG AP/Africa Other 2Q 579 740 20 120 -262 Americ
Slide 9: North America First Quarter Key Metrics
AUTOMOTIVE SECTOR -- NORTH AMERICA FIRST QUARTER KEY METRICS -- 2005 vs. 2004 2003 2004 Revenue 23.2 21.1 $21.1 $23.2 Revenue (Bils.) 2003 2004 Vehicle Unit Sales 1011 898 898 1,011 Vehicle Unit Sales (000) 2003 2004 PBT 1962 663 $1,963 Pre-Tax Profits (Mils.)* Memo: U.S. Market Share 18.7 % 17.8 %
Slide 10: South America First Quarter Key Metrics
AUTOMOTIVE SECTOR -- SOUTH AMERICA FIRST QUARTER KEY METRICS -- 2005 vs. 2004 2004 2005 0.7 0.9 $0.9 $0.7 Revenue (Bils.) 2004 2005 Vehicle Unit Sales 66 72 73 66 Vehicle Unit Sales (000) 2004 2005 PBT 15 71 Pre-Tax Profits (Mils.) Memo: Brazil Mkt. Share 11.4 % 13.4 % 2005 2004 2005 2004 2005 2004
Slide 11: Europe First Quarter Key Metrics
AUTOMOTIVE SECTOR -- EUROPE FIRST QUARTER KEY METRICS -- 2005 vs. 2004 1st Qtr 2nd Qtr East 6.459 7.7 2005 2004 $7.7 $6.5 Revenue (Bils.) 2003 2004 426 445 2005 2004 445 426 Vehicle Unit Sales (000) 2003 2004 East 6 59 $5 2005 2004 Pre-Tax Profits (Mils.)* Memo: Market Share** 9.2 % 9.0 % * Excludin
Slide 12: P.A.G. First Quarter Key Metrics
AUTOMOTIVE SECTOR -- P.A.G. FIRST QUARTER KEY METRICS -- 2005 vs. 2004 1st Qtr 1st Qtr East 6.8 7.6 2005 2004 $7.6 $6.8 Revenue (Bils.) 2003 2004 189 188 2005 2004 188 189 Vehicle Unit Sales (000) 2003 2004 East 33 -55 $33 2005 2004 Pre-Tax Profits (Mils.) $(55) Memo: U.S. Mkt. Share 1.3 % 1.2% Eur.
Slide 13: Asia Pacific and Africa / Mazda First Quarter Pre-Tax Profits
AUTOMOTIVE SECTOR -- ASIA PACIFIC AND AFRICA / MAZDA FIRST QUARTER 2005 PRE-TAX PROFITS Memo: B / (W) 2004 $ 15 $15 $0 (Mils.) Asia Pacific and Africa / Mazda Asia Pacific and Africa Mazda and Assoc. Operations AP and A/M AP & Af Mazda & 1Q 97 43 54 $97 $54 $43
Slide 14: Asia Pacific and Africa First Quarter Key Metrics
AUTOMOTIVE SECTOR -- ASIA PACIFIC AND AFRICA FIRST QUARTER KEY METRICS -- 2005 vs. 2004 2003 2004 Revenue 1.6 2 2005 2004 $2.0 $1.6 Revenue (Bils.) 2003 2004 Vehicle Unit Sales 96 112 2005 2004 112 96 Vehicle Unit Sales (000) 2002 2003 PBT 3 25 2005 2004 Pre-Tax Profits (Mils.) 1st Qtr 2nd Qtr East
Slide 15: 2005 First Quarter Cash
AUTOMOTIVE SECTOR 2005 FIRST QUARTER CASH* First Quarter (Bils.) Cash, Marketable and Loaned Securities, Short-Term VEBA Assets March 31, 2005 $ 22.9 December 31, 2004 23.6 Change in Gross Cash $ (0.7 ) Operating-Related Cash Flows Automotive Pre-Tax Profits** $ 0.6 Capital Spending (1.4 ) Depreciat
Slide 16: Financial Services Sector First Quarter Profit by Segment
FINANCIAL SERVICES SECTOR 2005 FIRST QUARTER PROFIT / (LOSS) BY SEGMENT Memo: B / (W) 2004 $33 $14 $40 $(21) Total Credit Hertz Other 1076 1061 63 -48 (Mils.) $1,076 Total Hertz Ford Credit Other $1,061 $33 $(18)
Slide 17: Ford Credit Pre-Tax Profit Compared with 2004
FINANCIAL SERVICES SECTOR 2005 FORD CREDIT PRE-TAX PROFIT COMPARED WITH 2004 Credit Loss First Quarter (Bils.) Financing Margin Lease Residual Volume 2005 Other 2004 2004 2005 Volume Financing Credit Lease Other East 1.1 1.1 -0.1 -0.1 0.2 0 0 $1.1 $1.1 $0 $(0.1) $(0.1) $0 $0 $0.2 ROE 22.4% 24.6%
Slide 18: Total Company 2005 Second Quarter Outlook
TOTAL COMPANY 2005 SECOND QUARTER OUTLOOK Projected Second Quarter production compared with a year ago 905,000 units in North America, down 46,000 units 460,000 units in Europe, down 24,000 units 200,000 units at P.A.G., up 4,000 units Automotive results expected to be a loss in the Second Quarter F
Slide 19: 2005 Planning Assumptions and Operational Metrics
AUTOMOTIVE SECTOR 2005 PLANNING ASSUMPTIONS AND OPERATIONAL METRICS Planning Assumptions Industry Volume (SAAR) -- U.S. (Mils.) 17.2 17.0 17.2 -- Europe (Mils.) 17.3 16.8 17.1 Operational Metrics Quality Improve in all regions Update in Second Quarter Market Share Improve in all regions Mixed Mixed
Slide 20: Total Company 2005 Financial Milestones
TOTAL COMPANY 2005 FINANCIAL MILESTONES* Americas North America $1.4 - $1.7 Worse South America 0.1 - 0.2 On Track Europe / P.A.G. Europe 0.1 - 0.2 Low End P.A.G. 0.3 - 0.6 Low End Asia Pacific and Africa / Mazda 0.1 - 0.2 On Track Total Automotive $1.5 - $2.0 Worse Financial Services 3.5 - 3.7 Bett
Slide 21: Safe Harbor
SAFE HARBOR Greater price competition 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, geo-political events or other factors; Lower-than-anticipated marke
Slide 22: Appendix
APPENDIX
Slide 23: Calculation of Diluted Earnings Per Share
TOTAL COMPANY CALCULATION OF DILUTED EARNINGS PER SHARE Net Income (Mils.) Numerator After-Tax Profits $1,212 $1,260 Impact on Income from assumed conversion of convertible preferred securities 53 53 Income for diluted EPS $1,265 $1,313 Denominator Average shares outstanding 1,830 1,830 Net issuable
Slide 24: Second Quarter and Full Year Guidance - Special Items
TOTAL COMPANY 2005 SECOND QUARTER AND FULL YEAR GUIDANCE - SPECIAL ITEMS AND DISCONTINUED OPERATIONS Pre-Tax Profit (Mils.) Second Quarter Earnings Per Share* Special Items - P.A.G. Improvement Plan $(55 ) $ (36 ) $(0.02 ) $(110 ) $(72 ) $(0.03 ) - Fuel Cell Technology Charges (70 ) (70 ) (0.04 ) (1
Slide 25: 2004-2005 First Quarter Pre-Tax Results
TOTAL COMPANY 2004 - 2005 FIRST QUARTER PRE-TAX RESULTS* North America $1,963 $ 557 $ 0 $(106 ) $1,963 $ 663 South America 15 77 0 0 15 77 Total Americas $1,978 $ 634 $ 0 $(106 ) $1,978 $ 740 Europe $ (24 ) $ 59 $ (29 )** $ 0 $ 5 $ 59 P.A.G. 33 (55 ) 0 0 33 (55 ) Total Europe / P.A.G. $ 9 $ 4 $ (29
Slide 26: First Quarter Automotive Summary
AUTOMOTIVE SECTOR FIRST QUARTER AUTOMOTIVE SUMMARY Appendix 4 of 15 * Excluding special items; see Slide 3 and Appendix (page 3) for reconciliation to GAAP North America 1,011 898 $23,251 $21,096 $1,963 $ 663 South America 66 73 650 866 15 77 Total Americas 1,077 971 $23,901 $21,962 $1,978 $ 740 Eur
Slide 27: 2005 First Quarter Market Results
AUTOMOTIVE SECTOR 2005 FIRST QUARTER MARKET RESULTS U.S. Industry SAAR (Mils.) 17.0 0.2 Market Share (Pct.) - Ford and Lincoln Mercury 17.8 % (0.9 ) Pts. - Premier Automotive Group 1.2 (0.1 ) Total U.S. Market Share 19.0 % (1.0 ) Pts. Europe Industry SAAR (Mils.) 16.8 (0.4 ) Market Share (Pct.) - Fo
Slide 28: Production Volumes
AUTOMOTIVE SECTOR PRODUCTION VOLUMES Appendix 6 of 15 North America 908 (100 ) 905 (46 ) Europe 463 11 460 (24 ) P.A.G. 206 (6 ) 200 4 Units (000) B / (W) 2004 (000) First Quarter Actual 2005 Units (000) B / (W) 2004 (000) Second Quarter
Slide 29: North America Per Unit Revenue
* Prior to implementation of FIN46 ** See Appendix (page 8) for reconciliation to Automotive Sales; excludes P.A.G. brand vehicles 2002 2003 2004 2005 Net Rev 20848 21694 22998 23492 2002 2003 2004 $21,694* $20,848* First Quarter Per Unit Revenue $22,998 Memo: Excl. FIN46 $20,848 $21,694 $22,649 $23
Slide 30: Reconciliation of Net Pricing to Change in Automotive Sales
AUTOMOTIVE SECTOR RECONCILIATION OF NET PRICING TO CHANGE IN AUTOMOTIVE SALES* Automotive Sales 2005 $21,096 $23,492 $7,700 $17,303 2004 23,251 22,998 6,460 15,164 2005 B / (W) $ (2,155 ) $ 494 $1,240 $ 2,139 Than 2004 Explanation of Change (Pct.) Mix, Exchange, Other 3.3 % 14.9 % Net Pricing (1.2 )
Slide 31: Costs and Expenses
AUTOMOTIVE SECTOR COSTS AND EXPENSES Total Cost and Expenses $36,796 $38,667 $(1,871 ) Select Cost Items Included Above: Depreciation $ 799 $ 849 $ (50 ) Amortization 811 889 (78 ) Post-Retirement Expense 824 1,007 (183 ) 2004 (Mils.) 2005 (Mils.) 2005 B / (W) 2004 (Mils.) First Quarter Appendix 9 o
Slide 32: Ford Credit Results and Metrics - First Quarter
FINANCIAL SERVICES SECTOR FORD CREDIT RESULTS AND METRICS - FIRST QUARTER Receivables (Bils.) On-Balance Sheet $127 $125 Securitized Off-Balance Sheet 46 40 Managed $173 $165 Charge-Offs (Mils.) On-Balance Sheet $315 $181 Managed 429 229 Loss-to-Receivables Ratio On-Balance Sheet 0.97% 0.56% Managed
Slide 33: Ford Credit Key Metric Definitions
FINANCIAL SERVICES SECTOR FORD CREDIT KEY METRIC DEFINITIONS In addition to evaluating Ford Credit's financial performance on a GAAP financial statement basis, Ford Credit management also uses other criteria, some of which were previously disclosed in this presentation and are defined below. Informa
Slide 34: Ford Credit Ratio Definitions
FINANCIAL SERVICES SECTOR FORD CREDIT RATIO DEFINITIONS In addition to evaluating Ford Credit's financial performance on a GAAP financial statement basis, Ford Credit management also uses other criteria, some of which were previously disclosed in this presentation and are defined below: Leverage: To
Slide 35: Reconciliation of Managed Leverage to Financial Statement Leverage
FORD CREDIT RECONCILIATIONS OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE Total Debt* $142.4 $132.7 Total Securitized Receivables Outstanding** 48.4 41.1 Retained Interest in Securitized Receivables*** (13.4) (8.3) Adjustments for Cash and Cash Equivalents (12.5) (13.1 ) Adjustments for SFAS 1
Slide 36: Gross Cash Reconciliation to GAAP
AUTOMOTIVE SECTOR GROSS CASH RECONCILIATION TO GAAP Cash and Cash Equivalents $10.1 $ 9.5 $(0.6 ) $ 4.7 Marketable Securities 8.3 9.2 0.9 8.4 Loaned Securities 1.1 0.9 (0.2 ) 9.3 Total Cash / Market. Sec. $19.5 $19.6 $ 0.1 $22.4 Short-Term VEBA 4.1 3.3 (0.8 ) 4.1 Gross Cash $23.6 $22.9 $(0.7 ) $26.5
Slide 37: GAAP Reconciliation of Operating-Related Cash Flows
AUTOMOTIVE SECTOR GAAP RECONCILIATION OF OPERATING-RELATED CASH FLOWS Cash Flows from Operating Activities before Securities Trading $ 2.4 $(0.2 ) Items Included in Operating-Related Cash Flows Capital Expenditures $(1.4 ) $(0.2 ) Net Transactions Between Automotive and Financial Services Sectors (0
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