Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor — Q2 2005 Earnings Presentation
37 slides from Ford Mtr Co Del's earnings presentation, Jul 19, 2005
Slide 1: Second Quarter 2005 Earnings Review
SECOND QUARTER 2005 EARNINGS REVIEW JULY 19, 2005
Slide 2: Second Quarter 2005 Earnings Review
SECOND QUARTER 2005 EARNINGS REVIEW JULY 19, 2005
Slide 3: Total Company Second Quarter 2005 Summary
TOTAL COMPANY SECOND QUARTER 2005 SUMMARY Earnings per share of $0.47 from continuing operations, excluding special items; net income was $0.47 per share* North American Automotive loss disappointing All other Automotive Operations profitable; P.A.G. progress continues Ford Credit pre-tax profit of
Slide 4: Total Company Second Quarter and First Six Months Results
Earnings Per Share Net Income $ 0.47 $(0.10 ) $ 1.06 $ (0.45 ) Continuing Ops. -- Excl. Special Items 0.47 (0.14 ) 1.08 (0.48 ) After-Tax Profits (Mils.) Net Income $ 946 $ (219 ) $2,158 $ (959 ) Continuing Ops. -- Excl. Special Items 936 (307 ) 2,196 (1,014 ) Memo: Tax Rate 3.3 % (16.9 ) Pts. 14.4
Slide 5: Income from Continuing Operations Compared with Net Income
TOTAL COMPANY INCOME FROM CONTINUING OPERATIONS COMPARED WITH NET INCOME Income from Continuing Operations Excluding Special Items $ 0.47 $ 936 $1,052 $ 1.08 $2,196 $2,708 Special Items Visteon-Related Charges** $(0.15 ) $ (313 ) $(318) $(0.15 ) $ (319 ) $ (327 ) Personnel Reduction Program North Am
Slide 6: 2005 Financial Effect of Visteon Agreements - Special Items
2005 FINANCIAL EFFECT OF VISTEON AGREEMENTS -- SPECIAL ITEMS Estimated Assets Received* $ 700 - $900 Valuation Allowance / Forgiveness of Employee-Related Receivables** (450 ) Cash Payment for Inventories (300 ) Cash for Visteon Restructuring Escrow Account (400 ) Deferred Cash for Visteon Restructu
Slide 7: 2005 Second Quarter Pre-Tax Profit by Sector
TOTAL COMPANY 2005 SECOND QUARTER PRE-TAX PROFIT BY SECTOR* * Excludes special items; see Slide 3 and Appendix (page 3) for reconciliation to GAAP Financial Services Automotive Memo: B / (W) 2004 $(573) $(342) $(231) (Mils.) Total Total Auto Fin Svcs 2Q 1052 -245 1297 $1,052 $1,297 $(245) SLIDE 5
Slide 8: Second Quarter Automotive Pre-Tax Profit Compared with 2004
* Excludes special items; see Slide 3 and Appendix (page 3) for reconciliation to GAAP AUTOMOTIVE SECTOR 2005 SECOND QUARTER AUTOMOTIVE PRE-TAX PROFIT COMPARED WITH 2004* (Billions) 2004 2005 Volume Pricing Cost Exchange Other 0.1 -0.2 -0.2 0.3 -1.1 -0.1 0.8 $0.3 $(0.2) Net Pricing Cost Perform. $(1
Slide 9: First Six Months Cost Performance
AUTOMOTIVE SECTOR FIRST SIX MONTHS COST PERFORMANCE* Quality Mfg. Eng Overhead Net Product D&A Pension -0.3 0.4 0 -1 -0.1 -0.4 2005 Costs B / (W) 2004 (Bils.) Net Product Costs Quality Related Pension / OPEB Deprec. / Amort. Mfg. / Engrg. Overhead * At constant volume, mix, and exchange; excludes sp
Slide 10: 2005 Second Quarter Profit/(Loss) by Segment
AUTOMOTIVE SECTOR 2005 SECOND QUARTER PROFIT / (LOSS) BY SEGMENT* Memo: B / (W) 2004 $(342) $(1,295) $219 $38 $696 * Excludes special items; see Slide 3 and Appendix (page 3) for reconciliation to GAAP Worldwide Other Automotive WW Americas Europe/PAG AP/Africa Other 2Q -245 -819 83 93 398 Americas
Slide 11: North America Second Quarter Key Metrics
AUTOMOTIVE SECTOR -- NORTH AMERICA SECOND QUARTER KEY METRICS -- 2005 vs. 2004 2003 2004 Revenue 20.5 19.9 $19.9 $20.5 Revenue (Bils.) 2004 2005 Vehicle Unit Sales 919 837 862 919 Vehicle Unit Sales (000) 2004 2005 PBT 454 -907 $454 Pre-Tax Profits (Mils.)* Memo: U.S. Market Share 18.1 % 16.7 % * Ex
Slide 12: South America Second Quarter Key Metrics
AUTOMOTIVE SECTOR -- SOUTH AMERICA SECOND QUARTER KEY METRICS -- 2005 vs. 2004 2004 2005 0.7 1 $1.0 $0.7 Revenue (Bils.) 2004 2005 Vehicle Unit Sales 68 85 85 68 Vehicle Unit Sales (000) 2004 2005 PBT 15 71 Pre-Tax Profits (Mils.) Memo: Brazil Mkt. Share 11.1 % 11.9 % 2005 2004 2005 2004 2005 2004 2
Slide 13: Europe Second Quarter Key Metrics
AUTOMOTIVE SECTOR -- EUROPE SECOND QUARTER KEY METRICS -- 2005 vs. 2004 1st Qtr 2nd Qtr East 6.7 7.9 2005 2004 $7.9 $6.7 Revenue (Bils.) 2003 2004 455 454 2005 2004 454 455 Vehicle Unit Sales (000) 2004 2005 East 211 66 $211 2005 2004 Pre-Tax Profits (Mils.)* Memo: Market Share** 8.6 % 8.5 % * Exclu
Slide 14: P.A.G. Second Quarter Key Metrics
AUTOMOTIVE SECTOR -- P.A.G. SECOND QUARTER KEY METRICS -- 2005 vs. 2004 2nd Qtr 2nd Qtr East 6.9 7.9 2005 2004 $7.9 $6.9 Revenue (Bils.) 2004 2005 201 202 2005 2004 202 201 Vehicle Unit Sales (000) 2004 2005 East -347 17 $(347) 2005* 2004 Pre-Tax Profits (Mils.) $17 Memo: U.S. Mkt. Share 1.3 % 1.1 %
Slide 15: Asia Pacific and Africa / Mazda Second Quarter 2005 Pre-Tax Profits
AUTOMOTIVE SECTOR -- ASIA PACIFIC AND AFRICA / MAZDA SECOND QUARTER 2005 PRE-TAX PROFITS* Memo: B / (W) 2004 $38 $41 $(3 ) (Millions) Asia Pacific and Africa / Mazda Asia Pacific and Africa Mazda and Assoc. Operations AP and A/M AP & Af Mazda & 1Q 93 36 57 $93 $57 $36 * Excludes special items; see S
Slide 16: Asia Pacific and Africa Second Quarter Key Metrics
AUTOMOTIVE SECTOR -- ASIA PACIFIC AND AFRICA SECOND QUARTER KEY METRICS -- 2005 vs. 2004 2003 2004 Revenue 1.9 2 2005 2004 $2.0 $1.9 Revenue (Bils.) 2003 2004 Vehicle Unit Sales 108 115 2005 2004 115 108 Vehicle Unit Sales (000) 2002 2003 PBT 3 25 2005* 2004 Pre-Tax Profits (Mils.) 2004 2005 East -5
Slide 17: 2005 Second Quarter Cash
AUTOMOTIVE SECTOR 2005 SECOND QUARTER CASH* Second Quarter (Bils.) Cash, Marketable and Loaned Securities, Short-Term VEBA Assets June 30, 2005 $21.8 $21.8 March 31, 2005 / December 31, 2004 22.9 23.6 Change in Gross Cash $(1.1 ) $(1.8 ) Operating-Related Cash Flows Automotive Pre-Tax Profits** $(0.
Slide 18: Financial Services Sector Second Quarter Profit/(Loss) by Segment
FINANCIAL SERVICES SECTOR 2005 SECOND QUARTER PROFIT / (LOSS) BY SEGMENT Memo: B / (W) 2004 $(231) $(229) $9 $(11) Total Credit Hertz Other 1297 1162 153 -18 Pre-Tax Profit / (Loss) -- (Mils.) $1,297 Total Hertz Ford Credit Other $1,162 $153 $(18) SLIDE 16
Slide 19: Ford Credit Pre-Tax Profit Compared with 2004
FINANCIAL SERVICES SECTOR 2005 FORD CREDIT PRE-TAX PROFIT COMPARED WITH 2004 Credit Loss Second Quarter (Bils.) Financing Margin Lease Residual Volume 2005 Other 2004 2004 2005 Volume Financing Credit Lease Other East 1.4 1.2 -0.1 -0.2 0.2 0 -0.1 $1.2 $1.4 $(0.2) $(0.1) $0 $0.2 ROE 29.5% 26.1% $(0.2
Slide 20: 2005 Production Volumes
AUTOMOTIVE SECTOR 2005 PRODUCTION VOLUMES North America 905 (46 ) 730 (17 ) Europe 465 (19 ) 370 (10 ) P.A.G. 193 (2 ) 160 11 Units (000) B / (W) 2004 (000) Second Quarter Actual Units (000) B / (W) 2004 (000) Third Quarter Forecast SLIDE 18
Slide 21: 2005 Planning Assumptions and Operational Metrics
AUTOMOTIVE SECTOR 2005 PLANNING ASSUMPTIONS AND OPERATIONAL METRICS Planning Assumptions Industry Volume (SAAR) -- U.S. (Mils.) 17.2 17.3 17.3 -- Europe (Mils.) 17.3 17.4 17.2 Operational Metrics Quality Improve in all regions Flat Flat Market Share Improve in all regions Down Mixed Automotive Cost
Slide 22: Total Company 2005 Financial Milestones
TOTAL COMPANY 2005 FINANCIAL MILESTONES* Americas North America $1.4 - $1.7 Worse South America 0.1 - 0.2 Better 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 Better Total Automotive $1.5 - $2.0 Worse Financial Services 3.5 - 3.7 Better T
Slide 23: Calculation of Diluted Earnings Per Share
GD TOTAL COMPANY CALCULATION OF DILUTED EARNINGS PER SHARE Second Quarter 2005 Cont. Ops. -- Net Excl. Income Special Items (Mils.) (Mils.) Numerator After-Tax Profits $ 946 $ 936 Impact on Income from assumed conversion of convertible preferred securities 54 54 Income for diluted EPS $1,000 $ 990 D
Slide 24: Calculation of Diluted Earnings Per Share
TOTAL COMPANY CALCULATION OF DILUTED EARNINGS PER SHARE Net Income (Mils.) Numerator After-Tax Profits $ 946 $ 936 Impact on Income from assumed conversion of convertible preferred securities 54 54 Income for diluted EPS $1,000 $ 990 Denominator Average shares outstanding 1,842 1,842 Net issuable sh
Slide 25: 2005 Full Year - Special Items and Discontinued Operations
TOTAL COMPANY 2005 FULL YEAR -- SPECIAL ITEMS AND DISCONTINUED OPERATIONS Special Items Visteon-Related Charges $(0.21) - $(0.30 ) $(450) - $(650 ) $(500) - $(700 ) Personnel Reduction Programs North America** (0.02 ) (41 ) (63 ) P.A.G. (0.03 ) (72 ) (110 ) Further Personnel Reduction Programs (TBD
Slide 26: 2004-2005 Second Quarter Pre-Tax Results
TOTAL COMPANY 2004 - 2005 SECOND QUARTER PRE-TAX RESULTS* North America $ 334 $(1,214 ) $(120 )** $(307 ) $ 454 $ (907 ) South America 22 88 0 0 22 88 Total Americas $ 356 $(1,126 ) $(120 ) $(307 ) $ 476 $ (819 ) Europe $ 191 $ 66 $ (20 )*** $ 0 $ 211 $ 66 P.A.G. (347 ) (16 ) 0 (33 )*** (347 ) 17 To
Slide 27: Second Quarter Automotive Summary
AUTOMOTIVE SECTOR SECOND QUARTER AUTOMOTIVE SUMMARY Appendix 5 of 14 * Excludes special items; see Slide 3 and Appendix (page 3) for reconciliation to GAAP North America 919 862 $20,500 $19,932 $ 454 $(907 ) South America 68 85 665 1,042 22 88 Total Americas 987 947 $21,165 $20,974 $ 476 $(819 ) Eur
Slide 28: Second Quarter Automotive Summary
AUTOMOTIVE SECTOR SECOND QUARTER AUTOMOTIVE SUMMARY Appendix 5 of 14 * Excludes special items; see Slide 3 and Appendix (page 3) for reconciliation to GAAP North America 919 862 $20,500 $19,932 $ 454 $(907 ) South America 68 85 665 1,042 22 88 Total Americas 987 947 $21,165 $20,974 $ 476 $(819 ) Eur
Slide 29: 2005 Second Quarter Market Results
AUTOMOTIVE SECTOR 2005 SECOND QUARTER MARKET RESULTS U.S. Industry SAAR (Mils.) 17.7 0.8 Market Share (Pct.) - Ford and Lincoln Mercury 16.7 % (1.4 ) Pts. - Premier Automotive Group 1.1 (0.2 ) Total U.S. Market Share 17.8 % (1.6 ) Pts. Europe Industry SAAR (Mils.) 17.4 (0.2 ) Market Share (Pct.)* -
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 $19,932 $23,123 $7,892 $17,383 2004 20,500 22,307 6,735 14,802 2005 B / (W) $ (568 ) $ 816 $1,157 $ 2,581 Than 2004 Explanation of Change (Pct.) Mix, Exchange, Other 3.5 % 18.1 % Net Pricing 0.2 ** (
Slide 31: Costs and Expenses
AUTOMOTIVE SECTOR COSTS AND EXPENSES Total Cost and Expenses $36,456 $39,789 $ (3,333) Select Cost Items Included Above: Depreciation $ 807 $ 814 $ (7 ) Amortization 799 904 (105 ) Post-Retirement Expense 800 1,060 (260 ) 2004 (Mils.) 2005 (Mils.) 2005 B / (W) 2004 (Mils.) Second Quarter Appendix 8
Slide 32: Ford Credit Results and Metrics - Second Quarter
FINANCIAL SERVICES SECTOR FORD CREDIT RESULTS AND METRICS -- SECOND QUARTER Receivables (Bils.) On-Balance Sheet $126 $121 Securitized Off-Balance Sheet 43 39 Managed $169 $160 Charge-Offs (Mils.) On-Balance Sheet $291 $137 Managed 368 169 Loss-to-Receivables Ratio On-Balance Sheet 0.91% 0.44% Manag
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: Ford Credit Reconciliations of Managed Leverage to Financial Statement Leverage
FORD CREDIT RECONCILIATIONS OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE Total Debt* $138.3 $128.9 Total Securitized Receivables Outstanding 45.8 ** 39.2 Retained Interest in Securitized Receivables (16.4 ) *** (5.3) Adjustments for Cash and Cash Equivalents (8.8) (18.5 ) Adjustments for SFAS
Slide 36: Gross Cash Reconciliation to GAAP
AUTOMOTIVE SECTOR GROSS CASH RECONCILIATION TO GAAP Cash and Cash Equivalents $10.1 $10.8 $ 0.7 $ 7.1 Marketable Securities 8.3 7.6 (0.7 ) 10.4 Loaned Securities 1.1 0.8 (0.3 ) 5.3 Total Cash / Market. Securities $19.5 $19.2 $(0.3 ) $22.8 Short-Term VEBA 4.1 2.6 (1.5 ) 4.0 Gross Cash $23.6 $21.8 $(1
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