Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor — Q1 2004 Earnings Presentation
37 slides from Ford Mtr Co Del's earnings presentation, Apr 21, 2004
Slide 1: First Quarter 2004 Earnings Review
FIRST QUARTER 2004 EARNINGS REVIEW APRIL 21, 2004
Slide 2: First Quarter 2004 Summary
FIRST QUARTER 2004 SUMMARY Earnings per share of $0.96 from continuing operations, excluding special items, and net income of $0.94 per share Strong profit improvement in North America — Best-ever quality — Record unit revenue and positive net pricing — Strong F-Series and SUV sales South America pr
Slide 3: First Quarter Results
First Quarter FIRST QUARTER RESULTS En) 2004 Earnings Per Share weagen Net Income $0.94 $0.49 Continuing Ops. -- Excl. Special Items 0.96 0.51 After-Tax Profits (Mils.) Net Income $1,952 $1,056 Continuing Ops. -- Excl. Special Items 1,983 1,082 Pre-Tax Profits (Mils.) Incl. Special Items $2,889 $1,5
Slide 4: Total Company First Quarter 2004 Profits / (Loss)
TOTAL COMPANY FIRST QUARTER 2004 PROFITS / (LOSS) BLSECT oR Pre-Tax Profits by Sector (Mils.)* Total Automotive Financial Memo: Services B/W) 2003 $1,564 $1,156 $405 * Exchuing special items; see Appendlx age 3of 13 forreconciaton t GAAP inES
Slide 5: 2004 First Quarter Automotive Pre-Tax Profits Compared with 2003
2004 FIRST QUARTER AUTOMOTIVE PRE-TAX GDP PROFITS COMPARED WITH 2003 FIRST QUARTER Corporate Pre-Tax Profits (Bils.)* 2003 2004 Volume i Net Cost Exchange Mix Pricing Performance “Excluding special items; see Appendix (page 3 of 13) for reconciliation to GAAP SLIDE 4
Slide 6: First Quarter Automotive Cost Performance
FIRST QUARTER AUTOMOTIVE COST PERFORMANCE 2004 Costs B / (W) 2003 (Bils.)* Total $0.6 Bils. Quality ‘fg./ Overhead Net Deprec.! Pension! Related Engrg. Product Amort. Healthcare Costs + Rtconstantwlume, mis and exchange; exeluing spedalitems SLIDE 5
Slide 7: Automotive Sector -- Americas Segment
AUTOMOTIVE SECTOR -- AMERICAS SEGMENT FIRST QUARTER 2004 PROFITS / (LOSS) Pre-Tax Profits (Mils.)* Americas North South America America Memo: Bi (W) 2003 $772 $726 $46 * Excluding special items; see Appendix (page 3 of 13) for reconciliation to GAAP SLIDE 7
Slide 8: Automotive Sector -- North America
AUTOMOTIVE SECTOR -- NORTH AMERICA > FIRST QUARTER KEY METRICS — 2004 vs. 2003 Vehicle Unit Sales (000) Net Revenue (Bils.)* Pre-Tax Profits (Mils.)** $1,962 $22.2 $23.3 $1,236 Nemo: 2003 2004 2003 2004 2003-2004 U.S. Market Share from: Retail 14.4% 13.5% Fleet 56 “52 Total 20.0%, 18.7% + 2004 inclu
Slide 9: North America Vehicle Unit Sales and Stocks
NORTH AMERICA VEHICLE UNIT SALES AND STOCKS First Quarter 2003 (000) Vehicle Unit Sales 1,024 U.S. Dealer Stocks -- Period End 922 -- Change within Qtr. 129 First Quarter 2004 (000) 1,012 928 137 SLIDE 10
Slide 10: North America Assembly Plant Major Changeovers
NORTH AMERICA ASSEMBLY PLANT MAJOR CHANGEOVERS First Second Third Fourth Quarter Quarter Quarter Quarter ome vm S| (i Ontario Truck Dearborn Truck Dearborn Car aa (<r > SLIDE 11
Slide 11: Automotive Sector -- South America
E&P AUTOMOTIVE SECTOR -- SOUTH AMERICA FIRST QUARTER KEY METRICS — 2004 vs. 2003 Vehicle Unit Sales (000) Net Revenue (Bils.)* Pre-Tax Profits (Mils.)** 66 $0.6 2003 2004 Memo: Brazil Mkt. Share 10.5% 11.4% * 200tinchudes effect of FRIES SLIDE 12 ‘Excluding special items; see Appendix age 3of 13 for
Slide 12: Automotive Sector -- International Segment
AUTOMOTIVE SECTOR -- INTERNATIONAL SEGMENT FIRST QUARTER 2004 PROFITS / (LOSS) Pre-Tax Profits (Mils.)* Int'l. Europe P.A.G. Asia Other Memo: Bi(W) 2003 $426 $252 $108 $53 $13 * Exdding special tems; see Appendix (page 3of 19 forrecondiation to GAAP SLIDE 13
Slide 13: Automotive Sector -- Europe
AUTOMOTIVE SECTOR -- EUROPE FIRST QUARTER KEY METRICS — 2004 vs. 2003 Vehicle Unit Sales (000) Revenue (Bils.) Pre-Tax Profits (Mils.. ~ ~ Fw | 382 $5.0 $(247) 2003 2004 2003 2004 2003 2004 Memo: Market Share 9.2% 9.2% * Excluding special items; see Appendlx age 3of 13 forreconciiaton t GAAP Supe 14
Slide 14: Automotive Sector -- P.A.G.
Grd AUTOMOTIVE SECTOR -- P.A.G. FIRST QUARTER KEY METRICS — 2004 vs. 2003 Vehicle Unit Sales (000) Revenue (Bils.) Pre-Tax Profits (Mils.)* 194 $6.8 172 $5.4 $(88) 2003 2004 2003 2004 2003 2004 Memo: US. MMkt Share 1.2% 1.4% Eur. Mkt. Share 2.1 23 SLIDE 15 *Exeluding special items; see Appendix age
Slide 15: Automotive Sector -- Asia Pacific
Grd AUTOMOTIVE SECTOR -- ASIA PACIFIC FIRST QUARTER KEY METRICS — 2004 vs. 2003 Vehicle Unit Sales (000) Revenue (Bils.) Pre-Tax Profits (Mils.)* 96 $1.6 $28 82 $1.3 2003 2004 2003 2004 2003 2004 * Excluding special items; see Appendlx age 3of 13 forreconciiaton t GAAP SLIDE 16
Slide 16: 2004 First Quarter Automotive Cash
2004 FIRST QUARTER AUTOMOTIVE CASH* GD First Quarter Bils.) Cash, Marketable and Loaned Secu March 31, 2004 December 31, 2003 Change in Gross Cash Operating-Related Cash Flow ‘Automotive Pre-Tax Profits $18 Capital Spending (12) Depreciation and Amortization 16 Changes in Receivables, Inventory, and
Slide 17: Financial Services Sector
FINANCIAL SERVICES SECTOR FIRST QUARTER 2004 PROFITS / (LOSS) Pre-Tax Profits / (Loss) by Segment (Mils.) Total Ford Hertz Other Credit Financial Services Memo: Bi (W) 2003 $405 $360 $52 $7) SLIDE 18
Slide 18: 2004 First Quarter Automotive Cash
2004 FIRST QUARTER AUTOMOTIVE CASH* First Quarter (Bils.) Cash, Marketable and Loaned Securities, Short-Term VEBA Assets March 31, 2004 $26.5 December 31, 2003 25.9 Change in Gross Cash $0.6 Operating-Related Cash Flow Automotive Pre-Tax Profits $ 1.8 Capital Spending (1.2 ) Depreciation and Amortiz
Slide 19: Second Quarter Production and Earnings Outlook
SECOND QUARTER PRODUCTION AND EARNINGS OUTLOOK Second Quarter production compared with a year ago — 955,000 units in North America, down 53,000 units — 450,000 units in Europe, up 44,000 units — 190,000 units at P.A.G., up 7,000 units * From continuing operations excluding special items SLIDE 20
Slide 20: 2004 Planning Assumptions and Operational Metrics
2004 PLANNING ASSUMPTIONS AND > OPERATIONAL METRICS First Full Year Planning Assumptions Base Quarter Outlook Industry Volume (SAAR) - U.S. 17.0 million units 68 17.0 = Europe 16.9 million units tA 170 Operational Metrics 2004 Milestone Quality improve in all regions On track On track Market Share F
Slide 21: 2004 Financial Milestones
2004 FINANCIAL MILESTONES Full Year Pre-Tax Income —Milestone*___Outlooke Automotive (Bils.) - Americas — North America $ 1.5 - $1.7 Better —- South America (0.1) - 0 On track + International — Europe (0.2)- (0.1) On track — PAG, 05- 0.6 At risk — Asia-Pacific O- 01 On track * Excluding special item
Slide 22: Full Year Earnings Per Share Outlook
Full Year Present $1.50 - $1.60 Prior $1.20 - $1.30 * Based on income from continuing operations and excluding special items; ‘special items presently estimated for the full year at $(0.07) per share
Slide 23: Safe Harbor
SAFE HARBOR GDP ‘Statements included herein may constitute "Yorward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, These staternents involue a number ofrisks, uncertainties, and other factors that could cause actual results to differ materially from t
Slide 24: Calculation of Diluted Earnings Per Share
CALCULATION OF DILUTED EARNINGS PER SHARE First Quarter 2004 Cont. Ops. ~ Net Exel. Income Special Items Numerator (Mils,) (Mils,) Ater-Tax Profit $1,952 $1,983 Impact on Income from assumed conversion 49 49 of convertible preferred securities Income for diluted EPS ,001 082 Denominator Average shar
Slide 25: Income from Continuing Operations Excluding Special Items Compared with Net Income
INCOME FROM CONTINUING OPERATIONS EXCLUDING SPECIAL ITEMS COMPARED WITH Memo: 1 Qtr. NET INCOME —__First Quarter 2004 _ After-Tax — Pre-Tax 2003 Pre-Tax Profit Profits Eamings PerShare? _ Profit : , Income from Continuing Operations (ils. (ils) Mis.) Excluding Special Items $09 = $1,983. g2g01 $1,34
Slide 26: 2003 - 2004 First Quarter Pre-Tax Results
2003 — 2004 FIRST QUARTER PRE-TAX RESULTS Pre-Tax Profits Pre-Tax Profits (incl. Special Items) Special Items (Excl. Special tems) 2003 2004 2003 2004 2003 2004 Mils) (Mills) = Mls) (Mills) «= (Mils) (Mis) North America $1,236 $1,962 Ge $- $4,236 $1,962 South America Gt) 15 2 2 Gt) 15 Total Americas
Slide 27: 2003 - 2004 First Quarter Pre-Tax Results
2003 - 2004 FIRST QUARTER PRE-TAX RESULTS North America $1,236 $1,962 $ -- $ -- $1,236 $1,962 South America (31 ) 15 -- -- (31 ) 15 Total Americas $1,205 $1,977 $ -- $ -- $1,205 $1,977 International Europe $ (247 ) $ (24 ) $ -- $(29 ) $ (247 ) $ 5 P.A.G. (88 ) 20 -- -- (88 ) 20 Asia Pacific (25 ) 28
Slide 28: 2004 First Quarter Market Results
2004 FIRST QUARTER MARKET RESULTS BI(W) Amount 2003 Us. a Industry SAAR (Mils.) 168 06 Market Share (Pct.) - Ford and Lincoln Mercury (1.3) Pts. - Premier Automotive Group 02 Total U.S. Market Share Net Pricing (Pet,)* Europe Industry SAAR (Mils.) 7A 04 Market Share (Pct) - Ford 0 Pts. - Premier Aut
Slide 29: Production Volumes
PRODUCTION VOLUMES 2004 Actual 2004 Forecast First Quarter Second Quarter B/(W) B/(W) Units 2003 Units 2003 (000) (000) (000) (000) North America 4,008 (24) 955 (53) Europe 437 22 450 44 P.A.G, 203 26 190 7 Appendix 6 of 13
Slide 30: Reconciliation of Net Pricing to Change in Automotive Sales
RECONCILIATION OF NET PRICING TO CHANGE IN AUTOMOTIVE SALES First Quarter North America Europe (Mils.) (Per Uni (ils) (Per Unity Automotive Sales 2004" $23,253 $22,977 $6,460 $15,381 2003 22.215 21,694 4986 13,052 2004 B / (W) Than 2003 $1,038 § 1,283 31474 $2,329 Memo: Change in 52% 178% Automotive
Slide 31: Costs and Expenses Automotive Sector
COSTS AND EXPENSES AUTOMOTIVE SECTOR Total Cost and Expenses Select Cost Items Included Above: Depreciation Amortization Post-Retirement Expense 2003 (Mils.) $33,353 $ 693 685 798 First Quarter 2004 (Mils.) $36,819 $ 803 811 823 2004 B/(W) 2003 (Mils.) $(3,466) $ (110) (126) (25) Appendix 8 of 13
Slide 32: Ford Credit Key Metric Definitions
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. Information about the impact of
Slide 33: Ford Credit Ratio Definitions
FORD CREDIT RATIO DEFINITIONS = In addition to evaluating Ford Credif’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: Lecete-Rnectcabtes Rate Credit Losse
Slide 34: Ford Credit Reconciliations of Managed Leverage to Financial Statement Leverage
FORD CREDIT RECONCILIATIONS OF MANAGED EP LEVERAGE TO FINANCIAL STATEMENT LEVERAGE March 31, March 31, 2003 2004 Leverage Calculation ETS) ils.) Total Debt $137.3 $142.4" Total Securitized Receivables Outstanding” 733 Retained Interest in Securitized Receivables™* (18.1) Adjustments for Cash and Cas
Slide 35: Automotive Gross Cash Reconciliation to GAAP
AUTOMOTIVE GROSS CASH RECONCILIATION TO GAAP Cash and Cash Equivalents Marketable Securities Loaned Securities Total Cash / Market. Sec. Short-Term VEBA Gross Cash Mar. 31 2004 Memo: Dec.31 Mar. 31 BI(W) Mar. 31 2003 2004 _Dec. 31 2003 2003 @ils) “Bils.) ils.) ils.) $54 $47 $0.7) $7.4 108 84 (24) 17
Slide 36: Automotive Operating-Related Cash Flow Reconciliation to GAAP
AUTOMOTIVE OPERATING-RELATED CASH FLOW RECONCILIATION TO GAAP 2004 1st Qtr. ils.) Cash Flow from Operating Activities before Securities Trading” $26 Items Included in Operating-Related Cash Flow — Capital Expenditures $(1.2) — Net Transactions Between Automotive and Financial Services Sectors (0.1)
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