[X]
|
QUARTERLY
REPORT PURSUANT TO SECTION
13
OR
15(d)
OF
THE
|
SECURITIES
EXCHANGE ACT OF
1934
|
|
For
the quarterly period ended September
30, 2005
|
|
[
]
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
|
SECURITIES
EXCHANGE ACT OF 1934
|
|
For
the transition period from
to
|
|
Commission
File Number: 1-3950
|
1-3950
|
38-0549190
|
(Commission
File Number)
|
(IRS
Employer
Identification No.)
|
One
American Road, Dearborn, Michigan
|
48126
|
(Address
of
principal executive offices)
|
(Zip
Code)
|
Third
Quarter
|
Nine
Months
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(unaudited)
|
(unaudited)
|
||||||||||||
Sales
and revenues
|
|||||||||||||
Automotive
sales
|
$
|
34,675
|
$
|
32,797
|
$
|
112,692
|
$
|
108,258
|
|||||
Financial
Services revenues
|
6,181
|
6,324
|
17,848
|
18,459
|
|||||||||
Total
sales
and revenues
|
40,856
|
39,121
|
130,540
|
126,717
|
|||||||||
Costs
and expenses
|
|||||||||||||
Cost
of
sales
|
33,532
|
30,956
|
105,803
|
98,634
|
|||||||||
Selling,
administrative and other expenses
|
5,983
|
5,694
|
18,200
|
17,433
|
|||||||||
Interest
expense
|
1,976
|
1,867
|
5,659
|
5,436
|
|||||||||
Provision
for
credit and insurance losses
|
182
|
326
|
350
|
853
|
|||||||||
Total
costs
and expenses
|
41,673
|
38,843
|
130,012
|
122,356
|
|||||||||
Automotive
interest income and other non-operating income/(expense),
net
|
307
|
383
|
1,111
|
508
|
|||||||||
Automotive
equity in net income/(loss) of affiliated companies
|
133
|
57
|
259
|
197
|
|||||||||
Income/(loss)
before income taxes
|
(377
|
)
|
718
|
1,898
|
5,066
|
||||||||
Provision
for/(benefit from) income taxes
|
(140
|
)
|
197
|
(127
|
)
|
1,277
|
|||||||
Income/(loss)
before minority interests
|
(237
|
)
|
521
|
2,025
|
3,789
|
||||||||
Minority
interests in net income/(loss) of subsidiaries
|
54
|
62
|
196
|
219
|
|||||||||
Income/(loss)
from continuing operations
|
(291
|
)
|
459
|
1,829
|
3,570
|
||||||||
Income/(loss)
from discontinued operations
|
7
|
(193
|
)
|
45
|
(187
|
)
|
|||||||
Net
income/(loss)
|
$
|
(284
|
)
|
$
|
266
|
$
|
1,874
|
$
|
3,383
|
||||
AMOUNTS
PER SHARE OF COMMON AND CLASS B STOCK (Note 9)
|
|||||||||||||
Basic
income/(loss)
|
|||||||||||||
Income/(loss)
from continuing operations
|
$
|
(0.16
|
)
|
$
|
0.25
|
$
|
0.99
|
$
|
1.95
|
||||
Income/(loss)
from discontinued operations
|
0.01
|
(0.10
|
)
|
0.03
|
(0.10
|
)
|
|||||||
Net
income/(loss)
|
$
|
(0.15
|
)
|
$
|
0.15
|
$
|
1.02
|
$
|
1.85
|
||||
Diluted
income/(loss)
|
|||||||||||||
Income/(loss)
from continuing operations
|
$
|
(0.16
|
)
|
$
|
0.24
|
$
|
0.93
|
$
|
1.75
|
||||
Income/(loss)
from discontinued operations
|
0.01
|
(0.09
|
)
|
0.02
|
(0.09
|
)
|
|||||||
Net
income/(loss)
|
$
|
(0.15
|
)
|
$
|
0.15
|
$
|
0.95
|
$
|
1.66
|
||||
Cash
dividends
|
$
|
0.10
|
$
|
0.10
|
$
|
0.30
|
$
|
0.30
|
Third
Quarter
|
Nine
Months
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(unaudited)
|
(unaudited)
|
||||||||||||
AUTOMOTIVE
|
|||||||||||||
Sales
|
$
|
34,675
|
$
|
32,797
|
$
|
112,692
|
$
|
108,258
|
|||||
Costs
and expenses
|
|||||||||||||
Cost
of
sales
|
33,532
|
30,956
|
105,803
|
98,634
|
|||||||||
Selling,
administrative and other expenses
|
2,811
|
2,557
|
8,996
|
8,131
|
|||||||||
Total
costs
and expenses
|
36,343
|
33,513
|
114,799
|
106,765
|
|||||||||
Operating
income/(loss)
|
(1,668
|
)
|
(716
|
)
|
(2,107
|
)
|
1,493
|
||||||
Interest
expense
|
371
|
397
|
960
|
1,094
|
|||||||||
Interest
income and other non-operating income/(expense), net
|
307
|
383
|
1,111
|
508
|
|||||||||
Equity
in net
income/(loss) of affiliated companies
|
133
|
57
|
259
|
197
|
|||||||||
Income/(loss)
before income taxes — Automotive
|
(1,599
|
)
|
(673
|
)
|
(1,697
|
)
|
1,104
|
||||||
FINANCIAL
SERVICES
|
|||||||||||||
Revenues
|
6,181
|
6,324
|
17,848
|
18,459
|
|||||||||
Costs
and expenses
|
|||||||||||||
Interest
expense
|
1,605
|
1,470
|
4,699
|
4,342
|
|||||||||
Depreciation
|
1,537
|
1,568
|
4,591
|
4,956
|
|||||||||
Operating
and
other expenses
|
1,635
|
1,569
|
4,613
|
4,346
|
|||||||||
Provision
for
credit and insurance losses
|
182
|
326
|
350
|
853
|
|||||||||
Total
costs
and expenses
|
4,959
|
4,933
|
14,253
|
14,497
|
|||||||||
Income/(loss)
before income taxes — Financial Services
|
1,222
|
1,391
|
3,595
|
3,962
|
|||||||||
TOTAL
COMPANY
|
|||||||||||||
Income/(loss)
before income taxes
|
(377
|
)
|
718
|
1,898
|
5,066
|
||||||||
Provision
for/(benefit from) income taxes
|
(140
|
)
|
197
|
(127
|
)
|
1,277
|
|||||||
Income/(loss)
before minority interests
|
(237
|
)
|
521
|
2,025
|
3,789
|
||||||||
Minority
interests in net income/(loss) of subsidiaries
|
54
|
62
|
196
|
219
|
|||||||||
Income/(loss)
from continuing operations
|
(291
|
)
|
459
|
1,829
|
3,570
|
||||||||
Income/(loss)
from discontinued operations
|
7
|
(193
|
)
|
45
|
(187
|
)
|
|||||||
Net
income/(loss)
|
$
|
(284
|
)
|
$
|
266
|
$
|
1,874
|
$
|
3,383
|
||||
AMOUNTS
PER SHARE OF COMMON AND CLASS B STOCK (Note 9)
|
|||||||||||||
Basic
income/(loss)
|
|||||||||||||
Income/(loss)
from continuing operations
|
$
|
(0.16
|
)
|
$
|
0.25
|
$
|
0.99
|
$
|
1.95
|
||||
Income/(loss)
from discontinued operations
|
0.01
|
(0.10
|
)
|
0.03
|
(0.10
|
)
|
|||||||
Net
income/(loss)
|
$
|
(0.15
|
)
|
$
|
0.15
|
$
|
1.02
|
$
|
1.85
|
||||
Diluted
income/(loss)
|
|||||||||||||
Income/(loss)
from continuing operations
|
$
|
(0.16
|
)
|
$
|
0.24
|
$
|
0.93
|
$
|
1.75
|
||||
Income/(loss)
from discontinued operations
|
0.01
|
(0.09
|
)
|
0.02
|
(0.09
|
)
|
|||||||
Net
income/(loss)
|
$
|
(0.15
|
)
|
$
|
0.15
|
$
|
0.95
|
$
|
1.66
|
||||
Cash
dividends
|
$
|
0.10
|
$
|
0.10
|
$
|
0.30
|
$
|
0.30
|
|
September
30,
2005
|
December
31,
2004
|
|||||
(unaudited)
|
|||||||
ASSETS
|
|||||||
Cash
and cash
equivalents
|
$
|
28,200
|
$
|
22,831
|
|||
Marketable
securities
|
8,614
|
8,946
|
|||||
Loaned
securities
|
579
|
1,058
|
|||||
Finance
receivables, net
|
91,774
|
109,466
|
|||||
Other
receivables, net
|
5,268
|
5,969
|
|||||
Net
investment
in operating leases
|
23,007
|
22,652
|
|||||
Retained
interest in sold receivables
|
4,415
|
9,166
|
|||||
Inventories
(Note 5)
|
11,687
|
10,766
|
|||||
Equity
in net
assets of affiliated companies
|
2,594
|
2,835
|
|||||
Net
property
|
41,887
|
44,549
|
|||||
Deferred
income taxes
|
4,611
|
4,830
|
|||||
Goodwill
and
other intangible assets (Note 6)
|
6,072
|
6,394
|
|||||
Assets
of
discontinued/held-for-sale operations
|
15,535
|
16,346
|
|||||
Other
assets
|
24,052
|
28,050
|
|||||
Total
assets
|
$
|
268,295
|
$
|
293,858
|
|||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
Payables
|
$
|
22,991
|
$
|
21,991
|
|||
Accrued
and
other liabilities
|
71,382
|
71,078
|
|||||
Debt
|
141,738
|
164,545
|
|||||
Deferred
income taxes
|
4,617
|
7,845
|
|||||
Liabilities
of
discontinued/held-for-sale operations
|
12,522
|
11,477
|
|||||
Total
liabilities
|
253,250
|
276,936
|
|||||
Minority
interests
|
1,058
|
877
|
|||||
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
|
4,956
|
5,321
|
|||||
Accumulated
other comprehensive income/(loss)
|
(2,454
|
)
|
1,258
|
||||
Treasury
stock
|
(1,031
|
)
|
(1,728
|
)
|
|||
Earnings
retained for use in business
|
12,497
|
11,175
|
|||||
Total
stockholders’ equity
|
13,987
|
16,045
|
|||||
Total
liabilities and stockholders’ equity
|
$
|
268,295
|
$
|
293,858
|
September
30,
2005
|
December
31,
2004
|
||||||
(unaudited)
|
|||||||
ASSETS
|
|||||||
Automotive
|
|||||||
Cash
and cash
equivalents
|
$
|
9,096
|
$
|
10,142
|
|||
Marketable
securities
|
7,900
|
8,291
|
|||||
Loaned
securities
|
579
|
1,058
|
|||||
Total
cash,
marketable and loaned securities
|
17,575
|
19,491
|
|||||
Receivables,
net
|
3,297
|
2,894
|
|||||
Inventories
(Note 5)
|
11,687
|
10,766
|
|||||
Deferred
income taxes
|
3,397
|
3,837
|
|||||
Other
current
assets
|
7,599
|
8,916
|
|||||
Total
current
assets
|
43,555
|
45,904
|
|||||
Equity
in net
assets of affiliated companies
|
1,748
|
1,907
|
|||||
Net
property
|
41,545
|
42,904
|
|||||
Deferred
income taxes
|
10,436
|
10,894
|
|||||
Goodwill
and
other intangible assets (Note 6)
|
6,054
|
6,374
|
|||||
Assets
of
discontinued/held-for-sale operations
|
22
|
188
|
|||||
Other
assets
|
9,744
|
9,455
|
|||||
Total
Automotive assets
|
113,104
|
117,626
|
|||||
Financial
Services
|
|||||||
Cash
and cash
equivalents
|
19,104
|
12,689
|
|||||
Investments
in
securities
|
714
|
655
|
|||||
Finance
receivables, net
|
93,745
|
112,541
|
|||||
Net
investment
in operating leases
|
23,007
|
22,652
|
|||||
Retained
interest in sold receivables
|
4,415
|
9,166
|
|||||
Goodwill
and
other intangible assets (Note 6)
|
18
|
20
|
|||||
Assets
of
discontinued/held-for-sale operations
|
15,513
|
16,158
|
|||||
Other
assets
|
7,936
|
12,285
|
|||||
Receivable
from Automotive
|
1,592
|
2,753
|
|||||
Total
Financial Services assets
|
166,044
|
188,919
|
|||||
Intersector
elimination
|
(1,592
|
)
|
(2,753
|
)
|
|||
Total
assets
|
$
|
277,556
|
$
|
303,792
|
|||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
Automotive
|
|||||||
Trade
payables
|
$
|
17,254
|
$
|
16,026
|
|||
Other
payables
|
4,114
|
4,269
|
|||||
Accrued
and
other liabilities
|
27,497
|
29,700
|
|||||
Deferred
income taxes
|
2,330
|
2,514
|
|||||
Debt
payable
within one year
|
981
|
977
|
|||||
Current
payable to Financial Services
|
1,214
|
1,382
|
|||||
Total
current
liabilities
|
53,390
|
54,868
|
|||||
Long-term
debt
|
17,255
|
17,458
|
|||||
Other
liabilities
|
37,675
|
37,058
|
|||||
Deferred
income taxes
|
1,862
|
3,042
|
|||||
Liabilities
of
discontinued/held-for-sale operations
|
10
|
46
|
|||||
Payable
to
Financial Services
|
378
|
1,371
|
|||||
Total
Automotive liabilities
|
110,570
|
113,843
|
|||||
Financial
Services
|
|||||||
Payables
|
1,623
|
1,696
|
|||||
Debt
|
123,502
|
146,110
|
|||||
Deferred
income taxes
|
9,686
|
9,709
|
|||||
Other
liabilities and deferred income
|
6,210
|
6,834
|
|||||
Liabilities
of
discontinued/held-for-sale operations
|
12,512
|
11,431
|
|||||
Total
Financial Services liabilities
|
153,533
|
175,780
|
|||||
Minority
interests
|
1,058
|
877
|
|||||
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
|
4,956
|
5,321
|
|||||
Accumulated
other comprehensive income/(loss)
|
(2,454
|
)
|
1,258
|
||||
Treasury
stock
|
(1,031
|
)
|
(1,728
|
)
|
|||
Earnings
retained for use in business
|
12,497
|
11,175
|
|||||
Total
stockholders’ equity
|
13,987
|
16,045
|
|||||
Intersector
elimination
|
(1,592
|
)
|
(2,753
|
)
|
|||
Total
liabilities and stockholders’ equity
|
$
|
277,556
|
$
|
303,792
|
Nine
Months
|
|||||||
|
2005
|
2004
|
|||||
(unaudited)
|
|||||||
Cash
and cash equivalents at January 1
|
$
|
22,831
|
$
|
22,598
|
|||
Cash
flows from operating activities
|
|||||||
Net
cash flows
from operating activities
|
20,103
|
19,887
|
|||||
Cash
flows from investing activities
|
|||||||
Capital
expenditures
|
(5,462
|
)
|
(4,896
|
)
|
|||
Acquisitions
of retail and other finance receivables and operating
leases
|
(42,026
|
)
|
(47,416
|
)
|
|||
Collections
of
retail and other finance receivables and operating leases
|
37,760
|
40,124
|
|||||
Net
acquisitions of daily rental vehicles
|
(2,775
|
)
|
(2,739
|
)
|
|||
Purchases
of
securities
|
(4,743
|
)
|
(7,597
|
)
|
|||
Sales
and
maturities of securities
|
3,863
|
7,285
|
|||||
Proceeds
from
sales of retail and other finance receivables and operating
leases
|
15,144
|
4,661
|
|||||
Proceeds
from
sale of businesses
|
2,245
|
537
|
|||||
Cash
paid for
acquisitions
|
(1,617
|
)
|
(30
|
)
|
|||
Other
|
576
|
(348
|
)
|
||||
Net
cash (used
in)/provided by investing activities
|
2,965
|
(10,419
|
)
|
||||
Cash
flows from financing activities
|
|||||||
Cash
dividends
|
(552
|
)
|
(549
|
)
|
|||
Net
sales/(purchases) of Common Stock
|
250
|
(127
|
)
|
||||
Changes
in
short-term debt
|
(6,177
|
)
|
8,700
|
||||
Proceeds
from
issuance of other debt
|
20,237
|
12,544
|
|||||
Principal
payments on other debt
|
(31,076
|
)
|
(34,490
|
)
|
|||
Other
|
(5
|
)
|
(49
|
)
|
|||
Net
cash (used
in)/provided by financing activities
|
(17,323
|
)
|
(13,971
|
)
|
|||
Effect
of
exchange rate changes on cash
|
(376
|
)
|
(6
|
)
|
|||
Net
increase/(decrease) in cash and cash equivalents
|
5,369
|
(4,509
|
)
|
||||
Cash
and cash equivalents at September 30
|
$
|
28,200
|
$
|
18,089
|
Nine
Months 2005
|
Nine
Months 2004
|
||||||||||||
|
Automotive
|
Financial
Services
|
Automotive
|
Financial
Services
|
|||||||||
(unaudited)
|
(unaudited)
|
||||||||||||
Cash
and cash equivalents at January 1
|
$
|
10,142
|
$
|
12,689
|
$
|
6,855
|
$
|
15,743
|
|||||
Cash
flows from operating activities
|
|||||||||||||
Net
cash flows
from operating activities
|
4,535
|
7,757
|
5,045
|
11,867
|
|||||||||
Cash
flows from investing activities
|
|||||||||||||
Capital
expenditures
|
(5,109
|
)
|
(353
|
)
|
(4,597
|
)
|
(299
|
)
|
|||||
Acquisitions
of retail and other finance receivables and operating
leases
|
—
|
(42,026
|
)
|
—
|
(47,416
|
)
|
|||||||
Collections
of
retail and other finance receivables and operating leases
|
—
|
36,560
|
—
|
38,844
|
|||||||||
Net
(acquisitions)/collections of wholesale receivables
|
—
|
5,272
|
—
|
298
|
|||||||||
Net
acquisitions of daily rental vehicles
|
—
|
(2,775
|
)
|
—
|
(2,739
|
)
|
|||||||
Purchases
of
securities
|
(4,343
|
)
|
(400
|
)
|
(6,811
|
)
|
(786
|
)
|
|||||
Sales
and
maturities of securities
|
3,239
|
624
|
6,635
|
650
|
|||||||||
Proceeds
from
sales of retail and other finance receivables and operating
leases
|
—
|
15,144
|
—
|
4,661
|
|||||||||
Proceeds
from
sales of wholesale receivables
|
—
|
3,739
|
—
|
3,957
|
|||||||||
Proceeds
from
sale of businesses
|
204
|
2,041
|
125
|
412
|
|||||||||
Cash
paid for
acquisitions
|
(1,617
|
)
|
—
|
(30
|
)
|
—
|
|||||||
Net
investing
activity with Financial Services
|
2,486
|
—
|
3,277
|
—
|
|||||||||
Other
|
451
|
125
|
10
|
(358
|
)
|
||||||||
Net
cash (used
in)/provided by investing activities
|
(4,689
|
)
|
17,951
|
(1,391
|
)
|
(2,776
|
)
|
||||||
Cash
flows from financing activities
|
|||||||||||||
Cash
dividends
|
(552
|
)
|
—
|
(549
|
)
|
—
|
|||||||
Net
sales/(purchases) of Common Stock
|
250
|
—
|
(127
|
)
|
—
|
||||||||
Changes
in
short-term debt
|
(3
|
)
|
(6,174
|
)
|
(279
|
)
|
8,979
|
||||||
Proceeds
from
issuance of other debt
|
253
|
19,984
|
406
|
12,138
|
|||||||||
Principal
payments on other debt
|
(682
|
)
|
(30,394
|
)
|
(2,112
|
)
|
(32,378
|
)
|
|||||
Net
financing
activity with Automotive
|
—
|
(2,486
|
)
|
—
|
(3,277
|
)
|
|||||||
Other
|
(4
|
)
|
(1
|
)
|
(17
|
)
|
(32
|
)
|
|||||
Net
cash (used
in)/provided by financing activities
|
(738
|
)
|
(19,071
|
)
|
(2,678
|
)
|
(14,570
|
)
|
|||||
Effect
of
exchange rate changes on cash
|
14
|
(390
|
)
|
(9
|
)
|
3
|
|||||||
Net
transactions with Automotive/Financial Services
|
(168
|
)
|
168
|
92
|
(92
|
)
|
|||||||
Net
increase/(decrease) in cash and cash equivalents
|
(1,046
|
)
|
6,415
|
1,059
|
(5,568
|
)
|
|||||||
Cash
and cash equivalents at September 30
|
$
|
9,096
|
$
|
19,104
|
$
|
7,914
|
$
|
10,175
|
September
30,
2005
|
December
31,
2004
|
||||||
Assets
|
|||||||
Cash
and cash
equivalents
|
$
|
777
|
$
|
679
|
|||
Finance
receivables
|
1,359
|
1,283
|
|||||
Net
investment
in operating leases
|
10,625
|
9,111
|
|||||
Goodwill
and
other intangibles
|
873
|
877
|
|||||
Other
assets
|
1,879
|
2,022
|
|||||
Total
assets
of held-for-sale operations
|
$
|
15,513
|
$
|
13,972
|
|||
Liabilities
|
|||||||
Payables
|
$
|
1,321
|
$
|
1,538
|
|||
Debt
|
9,413
|
8,428
|
|||||
Other
liabilities
|
1,778
|
1,372
|
|||||
Total
liabilities of held-for-sale operations
|
$
|
12,512
|
$
|
11,338
|
Third
Quarter
|
Nine
Months
|
||||||||||||
|
2005
|
2004
|
2005
|
2004
|
|||||||||
Sales
and
revenues
|
$
|
1
|
$
|
171
|
$
|
121
|
$
|
568
|
|||||
Operating
income/(loss) from discontinued operations
|
$
|
—
|
$
|
(196
|
)
|
$
|
54
|
$
|
(165
|
)
|
|||
Gain/(loss)
on
discontinued operations
|
11
|
(68
|
)
|
(5
|
)
|
(77
|
)
|
||||||
(Provision
for)/benefit from income taxes
|
(4
|
)
|
71
|
(4
|
)
|
55
|
|||||||
Income/(loss)
from discontinued operations
|
$
|
7
|
$
|
(193
|
)
|
$
|
45
|
$
|
(187
|
)
|
Liability
at
|
Liability
at
|
||||||||||||||||||
December
31,
|
First
Nine Months of 2005
|
September
30,
|
Estimated
|
||||||||||||||||
2004
|
Accrued
|
Paid
|
Other*
|
2005
|
Total
Costs
|
||||||||||||||
Segment
|
|||||||||||||||||||
Ford
Europe
and PAG
|
$
|
256
|
$
|
30
|
$
|
(106
|
)
|
$
|
(45
|
)
|
$
|
135
|
$
|
592
|
*
|
Includes
foreign currency translation adjustments and reductions to accrued
amounts
resulting from revisions to estimated
liabilities.
|
Liability
at
|
Liability
at
|
||||||||||||||||||
December
31,
|
First
Nine Months of 2005
|
September
30,
|
Estimated
|
||||||||||||||||
2004
|
Accrued
|
Paid
|
Other
|
2005
|
Total
Costs
|
||||||||||||||
Segment
|
|||||||||||||||||||
Ford
Credit
|
$
|
10
|
$
|
18
|
$
|
(13
|
)
|
$
|
—
|
$
|
15
|
$
|
63
|
September
30,
|
December
31,
|
||||||
|
2005
|
2004
|
|||||
Raw
materials,
work-in-process and supplies
|
$
|
4,050
|
$
|
3,968
|
|||
Finished
products
|
8,646
|
7,799
|
|||||
Total
inventories at FIFO
|
12,696
|
11,767
|
|||||
Less:
LIFO
adjustment
|
(1,009
|
)
|
(1,001
|
)
|
|||
Total
inventories
|
$
|
11,687
|
$
|
10,766
|
Automotive
Sector
|
Financial
Services
Sector
|
|||||||||
The
Americas
|
Ford
Europe
and
PAG
|
Ford
Credit
|
||||||||
Beginning
balance, December 31, 2004
|
$
|
188
|
$
|
5,248
|
$
|
20
|
||||
Goodwill
acquired
|
47
|
—
|
—
|
|||||||
Goodwill
impairment
|
(34
|
)
|
—
|
—
|
||||||
Exchange
translation/other
|
—
|
(224
|
)
|
(2
|
)
|
|||||
Ending
balance, September 30, 2005
|
$
|
201
|
$
|
5,024
|
$
|
18
|
Automotive
Sector
|
Financial
Services
Sector
|
|||||||||
Amortizable
|
Non-amortizable
|
Amortizable
|
||||||||
Gross
carrying
amount
|
$
|
517
|
$
|
442
|
$
|
4
|
||||
Less:
accumulated amortization
|
(130
|
)
|
—
|
(4
|
)
|
|||||
Net
intangible
assets
|
$
|
387
|
$
|
442
|
$
|
—
|
Income
/ (Loss) Before Income Taxes
|
|||||||||||||
Third
Quarter
|
Nine
Months
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
Automotive
Sector
|
$
|
129
|
$
|
43
|
$
|
267
|
$
|
125
|
|||||
Financial
Services Sector
|
30
|
99
|
(70
|
)
|
234
|
||||||||
Total
|
$
|
159
|
$
|
142
|
$
|
197
|
$
|
359
|
|
September
30, 2005
|
December
31, 2004
|
|||||||||||
|
Fair
Value
Assets
|
Fair
Value
Liabilities
|
Fair
Value
Assets
|
Fair
Value
Liabilities
|
|||||||||
Automotive
Sector
|
|||||||||||||
Total
derivative financial instruments
|
$
|
1,507
|
$
|
1,171
|
$
|
3,128
|
$
|
1,203
|
|||||
Financial
Services Sector
|
|||||||||||||
Foreign
currency swaps, forwards and options
|
$
|
1,240
|
$
|
1,051
|
$
|
4,201
|
$
|
1,076
|
|||||
Interest
rate
swaps
|
2,022
|
81
|
3,074
|
180
|
|||||||||
Impact
of
netting agreements
|
(186
|
)
|
(186
|
)
|
(345
|
)
|
(345
|
)
|
|||||
Total
derivative financial instruments
|
$
|
3,076
|
$
|
946
|
$
|
6,930
|
$
|
911
|
Third
Quarter
|
Nine
Months
|
|||||||||||||||
2005
|
2004
|
2005
|
2004
|
|||||||||||||
Basic
and Diluted Income/(Loss)
|
||||||||||||||||
Basic
income/(loss) from continuing operations
|
$
|
(291
|
)
|
$
|
459
|
$
|
1,829
|
$
|
3,570
|
|||||||
Effect
of
dilutive convertible preferred securities
|
—
|
(a)
|
|
50
|
160
|
152
|
||||||||||
Diluted
income/(loss) from continuing operations
|
$
|
(291
|
)
|
$
|
509
|
$
|
1,989
|
$
|
3,722
|
|||||||
Basic
and Diluted Shares
|
||||||||||||||||
Average
shares
outstanding
|
1,853
|
1,829
|
1,842
|
1,831
|
||||||||||||
Restricted
and
uncommitted-ESOP shares
|
(2
|
)
|
(4
|
)
|
(3
|
)
|
(4
|
)
|
||||||||
Basic
shares
|
1,851
|
1,825
|
1,839
|
1,827
|
||||||||||||
Net
dilutive
options and restricted and uncommitted-ESOP shares
|
—
|
(b)
|
|
19
|
10
|
19
|
||||||||||
Dilutive
convertible preferred securities
|
—
|
(a)
|
|
282
|
282
|
282
|
||||||||||
Diluted
shares
|
1,851
|
2,126
|
2,131
|
2,128
|
(a) |
282
million
shares and the related income effect for convertible preferred
securities.
|
(b) |
8
million
potential shares related to options, restricted stock grants, restricted
stock equivalents, and performance stock
rights.
|
Third
Quarter
|
Nine
Months
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
Net
income/(loss)
|
$
|
(284
|
)
|
$
|
266
|
$
|
1,874
|
$
|
3,383
|
||||
Other
comprehensive income/(loss)
|
|||||||||||||
Foreign
currency translation
|
229
|
573
|
(2,811
|
)
|
154
|
||||||||
Net
loss on
derivative instruments
|
(49
|
)
|
(167
|
)
|
(1,003
|
)
|
(462
|
)
|
|||||
Net
holding
gain/(loss)
|
(39
|
)
|
(48
|
)
|
(50
|
)
|
2
|
||||||
Minimum
pension liability
|
16
|
57
|
152
|
(74
|
)
|
||||||||
Total
other
comprehensive income/(loss)
|
157
|
415
|
(3,712
|
)
|
(380
|
)
|
|||||||
Total
comprehensive income/(loss)
|
$
|
(127
|
)
|
$
|
681
|
$
|
(1,838
|
)
|
$
|
3,003
|
Third
Quarter
|
|||||||||||||||||||
Pension
Benefits
|
Health
Care and
|
||||||||||||||||||
U.S.
Plans
|
Non-U.S.
Plans
|
Life
Insurance
|
|||||||||||||||||
2005
|
2004
|
2005
|
2004
|
2005
|
2004
|
||||||||||||||
Service
cost
|
$
|
184
|
$
|
159
|
$
|
152
|
$
|
138
|
$
|
178
|
$
|
136
|
|||||||
Interest
cost
|
601
|
614
|
340
|
330
|
551
|
493
|
|||||||||||||
Expected
return on assets
|
(847
|
)
|
(803
|
)
|
(400
|
)
|
(411
|
)
|
(126
|
)
|
(85
|
)
|
|||||||
Amortization
of:
|
|||||||||||||||||||
Prior
service
costs
|
125
|
125
|
30
|
26
|
(54
|
)
|
(55
|
)
|
|||||||||||
(Gains)/losses
and other
|
26
|
6
|
89
|
45
|
223
|
152
|
|||||||||||||
Separation
programs
|
42
|
—
|
40
|
6
|
—
|
—
|
|||||||||||||
Costs
allocated to Visteon
|
(28
|
)
|
(27
|
)
|
—
|
—
|
(80
|
)
|
(60
|
)
|
|||||||||
Net
expense/(income)
|
$
|
103
|
$
|
74
|
$
|
251
|
$
|
134
|
$
|
692
|
$
|
581
|
Nine
Months
|
|||||||||||||||||||
Pension
Benefits
|
Health
Care and
|
||||||||||||||||||
U.S.
Plans
|
Non-U.S.
Plans
|
Life
Insurance
|
|||||||||||||||||
2005
|
2004
|
2005
|
2004
|
2005
|
2004
|
||||||||||||||
Service
cost
|
$
|
553
|
$
|
477
|
$
|
478
|
$
|
414
|
$
|
534
|
$
|
409
|
|||||||
Interest
cost
|
1,799
|
1,834
|
1,064
|
998
|
1,653
|
1481
|
|||||||||||||
Expected
return on assets
|
(2,516
|
)
|
(2,409
|
)
|
(1,236
|
)
|
(1,231
|
)
|
(374
|
)
|
(197
|
)
|
|||||||
Amortization
of:
|
|||||||||||||||||||
Prior
service
costs
|
377
|
375
|
122
|
82
|
(162
|
)
|
(165
|
)
|
|||||||||||
(Gains)/losses
and other
|
63
|
17
|
261
|
137
|
670
|
458
|
|||||||||||||
Separation
programs
|
149
|
1
|
57
|
36
|
—
|
—
|
|||||||||||||
Costs
allocated to Visteon
|
(84
|
)
|
(79
|
)
|
—
|
—
|
(242
|
)
|
(183
|
)
|
|||||||||
Net
expense/(income)
|
$
|
341
|
$
|
216
|
$
|
746
|
$
|
436
|
$
|
2,079
|
$
|
1,803
|
First
Nine Months
|
|||||||
|
2005
|
2004
|
|||||
Beginning
balance
|
$
|
5,751
|
$
|
5,443
|
|||
Payments
made
during the period
|
(3,032
|
)
|
(2,701
|
)
|
|||
Changes
in
accrual related to warranties issued during the period
|
2,936
|
2,586
|
|||||
Changes
in
accrual related to pre-existing warranties
|
629
|
21
|
|||||
Foreign
currency translation and other
|
(160
|
)
|
25
|
||||
Ending
balance
|
$
|
6,124
|
$
|
5,374
|
Automotive
Sector
|
Financial
Services Sector (a)
|
||||||||||||||||||||||||||||||||||||
Ford
Asia
|
|||||||||||||||||||||||||||||||||||||
Ford
|
Pacific
&
|
||||||||||||||||||||||||||||||||||||
The
|
Europe
|
Africa/
|
Ford
|
||||||||||||||||||||||||||||||||||
Americas
|
and
PAG
|
Mazda
|
Other
|
Total
|
Credit
|
Hertz
|
Other
|
Elims
|
Total
|
Elims
(b)
|
Total
|
||||||||||||||||||||||||||
THIRD
QUARTER 2005
|
|||||||||||||||||||||||||||||||||||||
Revenues
|
|||||||||||||||||||||||||||||||||||||
External
customer
|
$
|
19,338
|
$
|
13,199
|
$
|
2,138
|
$
|
—
|
$
|
34,675
|
$
|
4,029
|
$
|
2,128
|
$
|
24
|
$
|
—
|
$
|
6,181
|
$
|
—
|
$
|
40,856
|
|||||||||||||
Intersegment
|
418
|
340
|
24
|
—
|
782
|
127
|
5
|
21
|
(19
|
)
|
134
|
(916
|
)
|
—
|
|||||||||||||||||||||||
Income
|
|||||||||||||||||||||||||||||||||||||
Income/(loss)
before income taxes
|
(1,392
|
)
|
(245
|
)
|
133
|
(95
|
)
|
(1,599
|
)
|
901
|
350
|
(29
|
)
|
—
|
1,222
|
—
|
(377
|
)
|
|||||||||||||||||||
THIRD
QUARTER 2004
|
|||||||||||||||||||||||||||||||||||||
Revenues
|
|||||||||||||||||||||||||||||||||||||
External
customer
|
$
|
18,904
|
$
|
12,012
|
$
|
1,881
|
$
|
—
|
$
|
32,797
|
$
|
4,312
|
$
|
1,881
|
$
|
131
|
$
|
—
|
$
|
6,324
|
$
|
—
|
$
|
39,121
|
|||||||||||||
Intersegment
|
451
|
409
|
45
|
—
|
905
|
115
|
4
|
4
|
(3
|
)
|
120
|
(1,025
|
)
|
—
|
|||||||||||||||||||||||
Income
|
|||||||||||||||||||||||||||||||||||||
Income/(loss)
before income taxes
|
(463
|
)
|
(227
|
)
|
48
|
(31
|
)
|
(673
|
)
|
1,134
|
249
|
8
|
—
|
1,391
|
—
|
718
|
|||||||||||||||||||||
FIRST
NINE MONTHS 2005
|
|||||||||||||||||||||||||||||||||||||
Revenues
|
|||||||||||||||||||||||||||||||||||||
External
customer
|
$
|
62,274
|
$
|
44,305
|
$
|
6,113
|
$
|
—
|
$
|
112,692
|
$
|
12,077
|
$
|
5,639
|
$
|
132
|
$
|
—
|
$
|
17,848
|
$
|
—
|
$
|
130,540
|
|||||||||||||
Intersegment
|
2,806
|
1,797
|
89
|
—
|
4,692
|
439
|
14
|
34
|
(27
|
)
|
460
|
(5,152
|
)
|
—
|
|||||||||||||||||||||||
Income
|
|||||||||||||||||||||||||||||||||||||
Income/(loss)
before income taxes
|
(1,884
|
)
|
(191
|
)
|
337
|
41
|
(1,697
|
)
|
3,124
|
536
|
(65
|
)
|
—
|
3,595
|
—
|
1,898
|
|||||||||||||||||||||
Total
assets
at September 30
|
113,104
|
149,166
|
15,961
|
917
|
—
|
166,044
|
(1,592
|
)
|
277,556
|
||||||||||||||||||||||||||||
FIRST
NINE MONTHS 2004
|
|||||||||||||||||||||||||||||||||||||
Revenues
|
|||||||||||||||||||||||||||||||||||||
External
customer
|
$
|
63,970
|
$
|
38,891
|
$
|
5,397
|
$
|
—
|
$
|
108,258
|
$
|
13,167
|
$
|
4,993
|
$
|
299
|
$
|
—
|
$
|
18,459
|
$
|
—
|
$
|
126,717
|
|||||||||||||
Intersegment
|
2,646
|
1,943
|
77
|
—
|
4,666
|
365
|
15
|
9
|
(10
|
)
|
379
|
(5,045
|
)
|
—
|
|||||||||||||||||||||||
Income
|
|||||||||||||||||||||||||||||||||||||
Income/(loss)
before income taxes
|
1,871
|
(374
|
)
|
185
|
(578
|
)
|
1,104
|
3,572
|
386
|
4
|
—
|
3,962
|
—
|
5,066
|
|||||||||||||||||||||||
Total
assets
at September 30
|
116,588
|
164,083
|
14,804
|
2,020
|
—
|
180,907
|
(2,246
|
)
|
295,249
|
Third
Quarter
|
||||||||||
Net
Income/(Loss)
|
||||||||||
|
2005
|
2004
|
2005
Over/
(Under)
2004
|
|||||||
Income/(loss)
before income taxes
|
||||||||||
Automotive
sector
|
$
|
(1,599
|
)
|
$
|
(673
|
)
|
$
|
(926
|
)
|
|
Financial
Services sector
|
1,222
|
1,391
|
(169
|
)
|
||||||
Total
Company
|
(377
|
)
|
718
|
(1,095
|
)
|
|||||
Provision
for/(benefit from) income taxes
|
(140
|
)
|
197
|
(337
|
)
|
|||||
Minority
interests in net income/(loss) of subsidiaries *
|
54
|
62
|
(8
|
)
|
||||||
Income/(loss)
from continuing operations
|
(291
|
)
|
459
|
(750
|
)
|
|||||
Income/(loss)
from discontinued operations
|
7
|
(193
|
)
|
200
|
||||||
Net
income/(loss)
|
$
|
(284
|
)
|
$
|
266
|
$
|
(550
|
)
|
Third
Quarter
|
|||||||
2005
|
2004
|
||||||
Automotive
sector
|
|||||||
Ford
North
America
|
|||||||
Visteon-related
charges - primarily
valuation allowance against employee-related receivables
|
$
|
(180
|
)
|
$
|
—
|
||
Salaried
personnel-reduction programs
|
(76
|
)
|
—
|
||||
Fuel-cell
technology charges
|
(66
|
)
|
(41
|
)
|
|||
Ford
Europe
|
|||||||
Personnel-reduction
programs
|
(49
|
)
|
—
|
||||
Premier
Automotive Group ("PAG")
|
|||||||
PAG
Improvement Plan and personnel-reduction programs
|
(33
|
)
|
(23
|
)
|
|||
Other
Automotive
|
|||||||
Divestiture
of
non-core business
|
146
|
—
|
|||||
Total
Automotive sector
|
(258
|
)
|
(64
|
)
|
|||
Financial
Services sector
|
|||||||
Hertz
and
Other Financial Services
|
|||||||
Effect
of
Hertz being held for sale - cessation of depreciation on long-lived
assets
net of sale-related charges
|
84
|
—
|
|||||
Total
|
$
|
(174
|
)
|
$
|
(64
|
)
|
Third
Quarter
Income/(Loss)
Before
Income
Taxes
|
||||||||||
2005
|
2004
|
2005
Over/
(Under)
2004
|
||||||||
The
Americas
|
||||||||||
Ford
North
America
|
$
|
(1,488
|
)
|
$
|
(522
|
)
|
$
|
(966
|
)
|
|
Ford
South
America
|
96
|
59
|
37
|
|||||||
Total
The
Americas
|
(1,392
|
)
|
(463
|
)
|
(929
|
)
|
||||
Ford
Europe
and PAG
|
||||||||||
Ford
Europe
|
(104
|
)
|
(33
|
)
|
(71
|
)
|
||||
PAG
|
(141
|
)
|
(194
|
)
|
53
|
|||||
Total
Ford
Europe and PAG
|
(245
|
)
|
(227
|
)
|
(18
|
)
|
||||
Ford
Asia
Pacific and Africa/Mazda
|
||||||||||
Ford
Asia
Pacific and Africa
|
21
|
35
|
(14
|
)
|
||||||
Mazda
and
Associated Operations
|
112
|
13
|
99
|
|||||||
Total
Ford
Asia Pacific and Africa/Mazda
|
133
|
48
|
85
|
|||||||
Other
Automotive
|
(95
|
)
|
(31
|
)
|
(64
|
)
|
||||
Total
Automotive
|
$
|
(1,599
|
)
|
$
|
(673
|
)
|
$
|
(926
|
)
|
Third
Quarter
|
|||||||||||||||||||||||||
|
Sales
(in
billions)
|
Vehicle
Unit Sales (a)
(in
thousands)
|
|||||||||||||||||||||||
|
2005
|
2004
|
2005
Over/(Under)
2004
|
2005
|
2004
|
2005
Over/(Under)
2004
|
|||||||||||||||||||
The
Americas
|
|||||||||||||||||||||||||
Ford
North
America
|
$
|
18.2
|
$
|
18.1
|
$
|
0.1
|
1
|
%
|
774
|
780
|
(6
|
)
|
(1
|
)%
|
|||||||||||
Ford
South
America
|
1.2
|
0.8
|
0.4
|
50
|
88
|
76
|
12
|
16
|
|||||||||||||||||
Total
The
Americas
|
19.4
|
18.9
|
0.5
|
3
|
862
|
856
|
6
|
1
|
|||||||||||||||||
Ford
Europe
and PAG
|
|||||||||||||||||||||||||
Ford
Europe
|
6.4
|
5.9
|
0.5
|
8
|
371
|
372
|
(1
|
)
|
—
|
||||||||||||||||
PAG
|
6.8
|
6.1
|
0.7
|
11
|
169
|
169
|
—
|
—
|
|||||||||||||||||
Total
Ford
Europe and PAG
|
13.2
|
12.0
|
1.2
|
10
|
540
|
541
|
(1
|
)
|
—
|
||||||||||||||||
Ford
Asia
Pacific and Africa/Mazda
|
|||||||||||||||||||||||||
Ford
Asia
Pacific and Africa
|
1.9
|
1.9
|
—
|
—
|
115
|
111
|
4
|
4
|
|||||||||||||||||
Mazda
and
Associated Operations (b)
|
0.2
|
—
|
0.2
|
—
|
14
|
—
|
14
|
—
|
|||||||||||||||||
Total
Ford
Asia Pacific and Africa/Mazda
|
2.1
|
1.9
|
0.2
|
11
|
129
|
111
|
18
|
16
|
|||||||||||||||||
Total
Automotive
|
$
|
34.7
|
$
|
32.8
|
$
|
1.9
|
6
|
%
|
1,531
|
1,508
|
23
|
2
|
%
|
(a)
|
Included
in
vehicle unit sales of Ford Asia Pacific and Africa are Ford-badged
vehicles sold in China and Malaysia by certain unconsolidated affiliates
totaling about 20,000 and 16,000 units in 2005 and 2004, respectively.
“Sales” above does not include revenue from these
units.
|
(b)
|
Reflects
sales
of Mazda6 by our consolidated subsidiary - AutoAlliance International,
Inc. ("AAI") - beginning with the consolidation of AAI in the third
quarter of 2005 (See Note 7 of the Notes to the Financial
Statements).
|
Third
Quarter
|
Dealer-Owned
Stocks (a)
|
|||||||||||||||||||||
Market
Share
|
(in
thousands)
|
|||||||||||||||||||||
Market
|
2005
|
2004
|
2005
Over/(Under)
2004
|
September
30,
2005
|
September
30,
2004
|
2005
Over/(Under)
2004
|
||||||||||||||||
U.S.
(b)
|
17.5
|
%
|
17.3
|
%
|
0.2
|
pts.
|
639
|
785
|
(146
|
)
|
||||||||||||
Brazil
(b)
|
12.3
|
11.4
|
0.9
|
24
|
21
|
3
|
||||||||||||||||
Europe
(b)
(c)
|
8.6
|
8.8
|
(0.2
|
)
|
287
|
310
|
(23
|
)
|
||||||||||||||
PAG
-
U.S./Europe (c)
|
1.2/2.2
|
1.2/2.2
|
—
/
—
|
42/60
|
39/53
|
3/7
|
||||||||||||||||
Australia
(b)
|
12.7
|
15.1
|
(2.4
|
)
|
21
|
22
|
(1
|
)
|
(a)
|
Dealer-owned
stocks represent our estimate of vehicles shipped to our customers
(dealers) and not yet sold by the dealers to their retail customers,
including some vehicles reflected in our inventory.
|
(b)
|
Includes
only
Ford and, in certain markets (primarily U.S.), Lincoln and Mercury
brands.
|
(c)
|
European
market share is based, in part, on estimated 2005 vehicle registrations
for our 19 major European markets.
|
|
Third
Quarter
Income/(Loss)
Before
Income Taxes
|
|||||||||
|
2005
|
2004
|
2005
Over/(Under)
2004
|
|||||||
Ford
Credit
|
$
|
901
|
$
|
1,134
|
$
|
(233
|
)
|
|||
Hertz
|
350
|
249
|
101
|
|||||||
Other
Financial Services
|
(29
|
)
|
8
|
(37
|
)
|
|||||
Total
Financial Services sector
|
$
|
1,222
|
$
|
1,391
|
$
|
(169
|
)
|
Third
Quarter
|
|||||||||||||
|
2005
|
2004
|
2005
Over/(Under)
2004
|
||||||||||
Charge-offs
(in millions)
|
|||||||||||||
On-Balance
Sheet
|
$
|
175
|
$
|
335
|
$
|
(160
|
)
|
||||||
Managed
|
211
|
395
|
(184
|
)
|
|||||||||
Loss-to-Receivables
Ratios
|
|||||||||||||
On-Balance
Sheet
|
0.58
|
%
|
1.04
|
%
|
(0.46
|
)
|
pts.
|
||||||
Managed
|
0.55
|
%
|
0.94
|
%
|
(0.39
|
)
|
pts.
|
September
30,
2005
|
December
31,
2004
|
2005
Over/(Under)
2004
|
||||||||
On-Balance
Sheet (including on-balance sheet securitizations)
|
$
|
114.4
|
$
|
132.7
|
$
|
(18.3
|
)
|
|||
Securitized
Off-Balance Sheet
|
35.0
|
35.6
|
(0.6
|
)
|
||||||
Managed
|
$
|
149.4
|
$
|
168.3
|
$
|
(18.9
|
)
|
|||
Serviced
|
$
|
152.8
|
$
|
172.3
|
$
|
(19.5
|
)
|
September
30,
2005
|
December
31,
2004
|
2005
Over/(Under)
2004
|
|||||||||||
Allowance
for
credit losses (in billions)
|
$
|
1.8
|
$
|
2.4
|
$
|
(0.6
|
)
|
||||||
Allowance
as a
percentage of end-of-period receivables
|
1.52
|
%
|
1.80
|
%
|
(0.28
|
)
|
pts.
|
First
Nine Months
|
||||||||||
Net
Income/(Loss)
|
||||||||||
|
2005
|
2004
|
2005
Over/
(Under)
2004
|
|||||||
Income/(loss)
before income taxes
|
||||||||||
Automotive
sector
|
$
|
(1,697
|
)
|
$
|
1,104
|
$
|
(2,801
|
)
|
||
Financial
Services sector
|
3,595
|
3,962
|
(367
|
)
|
||||||
Total
Company
|
1,898
|
5,066
|
(3,168
|
)
|
||||||
Provision
for/(benefit from) income taxes (a)
|
(127
|
)
|
1,277
|
(1,404
|
)
|
|||||
Minority
interests in net income/(loss) of subsidiaries (b)
|
196
|
219
|
(23
|
)
|
||||||
Income/(loss)
from continuing operations
|
1,829
|
3,570
|
(1,741
|
)
|
||||||
Income/(loss)
from discontinued operations
|
45
|
(187
|
)
|
232
|
||||||
Net
income/(loss)
|
$
|
1,874
|
$
|
3,383
|
$
|
(1,509
|
)
|
First
Nine Months
|
|||||||
2005
|
2004
|
||||||
Automotive
sector
|
|||||||
Ford
North
America
|
|||||||
Visteon-related
charges - primarily valuation allowance against employee-related
receivables
|
$
|
(507
|
)
|
$
|
—
|
||
Salaried
personnel-reduction programs
|
(139
|
)
|
—
|
||||
Fuel-cell
technology charges
|
(116
|
)
|
(161
|
)
|
|||
Tax
adjustments (result of law changes related to non-income
taxes)
|
85
|
—
|
|||||
Divestiture
of
non-core businesses
|
(59
|
)
|
—
|
||||
Ford
Europe
|
|||||||
Personnel-reduction
programs and Ford Europe Improvement Plan
|
(49
|
)
|
(49
|
)
|
|||
Premier
Automotive Group ("PAG")
|
|||||||
PAG
Improvement Plan and personnel-reduction programs
|
(66
|
)
|
(23
|
)
|
|||
Ford
Asia
Pacific and Africa
|
|||||||
Divestiture
of
non-core businesses
|
14
|
—
|
|||||
Other
Automotive
|
|||||||
Divestiture
of
non-core businesses
|
146
|
17
|
|||||
Total
Automotive sector
|
(691
|
)
|
(216
|
)
|
|||
Financial
Services sector
|
|||||||
Hertz
and
Other Financial Services
|
|||||||
Effect
of
Hertz being held for sale - cessation of depreciation on long-lived
assets
net of sale-related charges
|
84
|
—
|
|||||
Total
|
$
|
(607
|
)
|
$
|
(216
|
)
|
|
First
Nine Months
Income/(Loss)
Before
Income
Taxes
|
|||||||||
|
2005
|
2004
|
2005
Over/
(Under)
2004
|
|||||||
The
Americas
|
||||||||||
Ford
North
America
|
$
|
(2,145
|
)
|
$
|
1,775
|
$
|
(3,920
|
)
|
||
Ford
South
America
|
261
|
96
|
165
|
|||||||
Total
The
Americas
|
(1,884
|
)
|
1,871
|
(3,755
|
)
|
|||||
Ford
Europe
and PAG
|
||||||||||
Ford
Europe
|
21
|
134
|
(113
|
)
|
||||||
PAG
|
(212
|
)
|
(508
|
)
|
296
|
|||||
Total
Ford
Europe and PAG
|
(191
|
)
|
(374
|
)
|
183
|
|||||
Ford
Asia
Pacific and Africa/Mazda
|
||||||||||
Ford
Asia
Pacific and Africa
|
114
|
58
|
56
|
|||||||
Mazda
and
Associated Operations
|
223
|
127
|
96
|
|||||||
Total
Ford
Asia Pacific and Africa/Mazda
|
337
|
185
|
152
|
|||||||
Other
Automotive
|
41
|
(578
|
)
|
619
|
||||||
Total
Automotive
|
$
|
(1,697
|
)
|
$
|
1,104
|
$
|
(2,801
|
)
|
First
Nine Months
|
|||||||||||||||||||||||||
|
Sales
(in
billions)
|
Vehicle
Unit Sales (a)
(in
thousands)
|
|||||||||||||||||||||||
|
2005
|
2004
|
2005
Over/(Under)
2004
|
2005
|
2004
|
2005
Over/(Under)
2004
|
|||||||||||||||||||
The
Americas
|
|||||||||||||||||||||||||
Ford
North
America
|
$
|
59.2
|
$
|
61.9
|
$
|
(2.7
|
)
|
(4
|
)%
|
2,534
|
2,710
|
(176
|
)
|
(6
|
)%
|
||||||||||
Ford
South
America
|
3.1
|
2.1
|
1.0
|
48
|
246
|
209
|
37
|
18
|
|||||||||||||||||
Total
The
Americas
|
62.3
|
64.0
|
(1.7
|
)
|
(3
|
)
|
2,780
|
2,919
|
(139
|
)
|
(5
|
)
|
|||||||||||||
Ford
Europe
and PAG
|
|||||||||||||||||||||||||
Ford
Europe
|
22.0
|
19.1
|
2.9
|
15
|
1,270
|
1,253
|
17
|
1
|
|||||||||||||||||
PAG
|
22.3
|
19.8
|
2.5
|
13
|
559
|
559
|
—
|
—
|
|||||||||||||||||
Total
Ford
Europe and PAG
|
44.3
|
38.9
|
5.4
|
14
|
1,829
|
1,812
|
17
|
1
|
|||||||||||||||||
Ford
Asia
Pacific and Africa/Mazda
|
|||||||||||||||||||||||||
Ford
Asia
Pacific and Africa
|
5.9
|
5.4
|
0.5
|
9
|
342
|
315
|
27
|
9
|
|||||||||||||||||
Mazda
and
Associated Operations (b)
|
0.2
|
—
|
0.2
|
—
|
14
|
—
|
14
|
—
|
|||||||||||||||||
Total
Ford
Asia Pacific and
Africa/Mazda
|
6.1
|
5.4
|
0.7
|
13
|
356
|
315
|
41
|
13
|
|||||||||||||||||
Total
Automotive
|
$
|
112.7
|
$
|
108.3
|
$
|
4.4
|
4
|
%
|
4,965
|
5,046
|
(81
|
)
|
(2
|
)%
|
First
Nine Months
|
Dealer-Owned
Stocks (a)
|
|||||||||||||||||||||
Market
Share
|
(in
thousands)
|
|||||||||||||||||||||
Market
|
2005
|
2004
|
2005
Over/(Under)
2004
|
September
30,
2005
|
September
30,
2004
|
2005
Over/(Under)
2004
|
||||||||||||||||
U.S.
(b)
|
17.4
|
%
|
18.0
|
%
|
(0.6
|
)
|
pts.
|
639
|
785
|
(146
|
)
|
|||||||||||
Brazil
(b)
|
12.5
|
11.3
|
1.2
|
24
|
21
|
3
|
||||||||||||||||
Europe
(b)
(c)
|
8.7
|
8.9
|
(0.2
|
)
|
287
|
310
|
(23
|
)
|
||||||||||||||
PAG
-
U.S./Europe (c)
|
1.1/2.3
|
1.3/2.3
|
(0.2)/0.0
|
|
42/60
|
39/53
|
3/7
|
|||||||||||||||
Australia
(b)
|
13.1
|
14.1
|
(1.0
|
)
|
21
|
22
|
(1
|
)
|
(a)
|
Dealer-owned
stocks represent our estimate of vehicles shipped to our customers
(dealers) and not yet sold by the dealers to their retail customers,
including some vehicles reflected in our inventory.
|
(b)
|
Includes
only
Ford and, in certain markets (primarily U.S.), Lincoln and Mercury
brands.
|
(c)
|
European
market share is based, in part, on estimated 2005 vehicle registrations
for our 19 major European markets.
|
Explanation
of Cost Performance
|
First
Nine Months
2005
Costs*
Better/(Worse)
Than
2004
|
|
Net
product
costs
|
New
product
programs and higher commodity prices
|
$(1.2)
|
Pension
and
healthcare
|
Effect
of
lower discount rates
|
(0.6)
|
Quality-related
|
Warranty
performance on prior model-year vehicles, offset
|
|
partially
by
cost recoveries from suppliers (including Bridgestone
|
||
Firestone)
|
(0.5)
|
|
Depreciation
and amortization
|
Related
to
investments for new vehicles
|
(0.1)
|
Manufacturing
and engineering
|
Ongoing
improvements in our plants and processes.
|
0.7
|
Total
|
$(1.7)
|
|
First
Nine Months
Income/(Loss)
Before
Income Taxes
|
|||||||||
|
2005
|
2004
|
2005
Over/(Under)
2004
|
|||||||
Ford
Credit
|
$
|
3,124
|
$
|
3,572
|
$
|
(448
|
)
|
|||
Hertz
|
536
|
386
|
150
|
|||||||
Other
Financial Services
|
(65
|
)
|
4
|
(69
|
)
|
|||||
Total
Financial Services sector
|
$
|
3,595
|
$
|
3,962
|
$
|
(367
|
)
|
First
Nine Months
|
|||||||||||||
|
2005
|
2004
|
2005
Over/(Under)
2004
|
||||||||||
Charge-offs
(in millions)
|
|||||||||||||
On-Balance
Sheet
|
$
|
493
|
$
|
941
|
$
|
(448
|
)
|
||||||
Managed
|
609
|
1,192
|
(583
|
)
|
|||||||||
Loss-to-Receivables
Ratios
|
|||||||||||||
On-Balance
Sheet
|
0.53
|
%
|
0.97
|
%
|
(0.44
|
)
|
pts.
|
||||||
Managed
|
0.50
|
%
|
0.92
|
%
|
(0.42
|
)
|
pts.
|
September
30, 2005
|
January
1, 2005
|
September
30, 2004
|
January
1, 2004
|
||||||||||
Cash
and cash
equivalents
|
$
|
9.1
|
$
|
10.1
|
$
|
7.9
|
$
|
6.9
|
|||||
Marketable
securities
|
7.9
|
8.3
|
9.1
|
9.3
|
|||||||||
Loaned
securities
|
0.6
|
1.1
|
2.4
|
5.7
|
|||||||||
Total
cash,
marketable securities and loaned securities
|
17.6
|
19.5
|
19.4
|
21.9
|
|||||||||
Short-term
VEBA assets
|
2.0
|
4.1
|
4.0
|
4.0
|
|||||||||
Gross
cash
|
$
|
19.6
|
$
|
23.6
|
$
|
23.4
|
$
|
25.9
|
Third
Quarter
|
First
Nine Months
|
|||||||||||||||
|
2005
|
2004
|
2005
|
2004
|
||||||||||||
Gross
cash at
end of period
|
$
|
19.6
|
$
|
23.4
|
$
|
19.6
|
$
|
23.4
|
||||||||
Gross
cash at
beginning of period
|
21.8
|
26.8
|
23.6
|
25.9
|
||||||||||||
Total
change
in gross cash
|
$
|
(2.2
|
)
|
$
|
(3.4
|
)
|
$
|
(4.0
|
)
|
$
|
(2.5
|
)
|
||||
Operating-related
cash flows
|
||||||||||||||||
Automotive
income/(loss) before income taxes
|
$
|
(1.6
|
)
|
$
|
(0.7
|
)
|
$
|
(1.7
|
)
|
$
|
1.1
|
|||||
Capital
expenditures
|
(1.8
|
)
|
(2.0
|
)
|
(5.1
|
)
|
(4.6
|
)
|
||||||||
Depreciation
and special tools amortization
|
1.6
|
1.6
|
5.1
|
4.8
|
||||||||||||
Changes
in
receivables, inventory and trade payables
|
0.3
|
0.1
|
0.1
|
(0.7
|
)
|
|||||||||||
Other
(a)
|
(1.4
|
)
|
(1.9
|
)
|
(0.7
|
)
|
(1.1
|
)
|
||||||||
Total
operating-related cash flows
|
(2.9
|
)
|
(2.9
|
)
|
(2.3
|
)
|
(0.5
|
)
|
||||||||
Other
changes
in cash
|
||||||||||||||||
Contributions
to funded pension plans/long-term VEBA
|
—
|
(1.5
|
)
|
(2.6
|
)
|
(3.0
|
)
|
|||||||||
Tax
refunds
|
—
|
—
|
0.3
|
—
|
||||||||||||
Capital
transactions with Financial Services sector (b)
|
1.0
|
1.5
|
2.2
|
3.4
|
||||||||||||
Acquisitions
and divestitures
|
0.2
|
(c)
|
|
—
|
(0.4
|
)
|
0.3
|
|||||||||
Dividends
paid
to shareholders
|
(0.2
|
)
|
(0.2
|
)
|
(0.6
|
)
|
(0.5
|
)
|
||||||||
Changes
in
total Automotive sector debt
|
(0.1
|
)
|
(0.3
|
)
|
(0.4
|
)
|
(2.0
|
)
|
||||||||
Other
|
(0.2
|
)
|
(d)
|
|
—
|
(0.2
|
)
|
(0.2
|
)
|
|||||||
Total
change
in gross cash
|
$
|
(2.2
|
)
|
$
|
(3.4
|
)
|
$
|
(4.0
|
)
|
$
|
(2.5
|
)
|
(a)
|
Primarily
expense and payment timing differences for items such as marketing,
warranty, pension and OPEB.
|
(b)
|
Primarily
dividends received from Ford Credit, excluding proceeds from Financial
Services sector divestitures paid to the Automotive
sector.
|
(c)
|
Primarily
proceeds from the sale of our remaining interest in Kwik-Fit Group
Limited.
|
(d)
|
Primarily
the
payment for purchase of shares of Automotive Components Holdings,
LLC from
Visteon (an outflow of about $300 million) and the net issuance of
Ford
Common stock under employee savings plans (an inflow of about $100
million).
|
Third
Quarter
|
First
Nine Months
|
||||||||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||||||||
Net
cash flows
from operating activities
|
$
|
(0.3
|
)
|
$
|
2.2
|
$
|
4.5
|
$
|
5.0
|
||||||||||
Items
included
in operating-related cash flows
|
|||||||||||||||||||
Capital
expenditures
|
(1.8
|
)
|
(2.0
|
)
|
(5.1
|
)
|
(4.6
|
)
|
|||||||||||
Net
transactions between auto and financial services sector
|
0.2
|
(0.4
|
)
|
(0.2
|
)
|
(a)
|
|
0.1
|
(a)
|
|
|||||||||
Net
sales/(purchases) of trading securities
|
(0.3
|
)
|
(4.4
|
)
|
(1.3
|
)
|
(3.7
|
)
|
|||||||||||
Other
(b)
|
(0.7
|
)
|
0.2
|
(2.5
|
)
|
(0.3
|
)
|
||||||||||||
Items
not
included in operating-related cash flows
|
|||||||||||||||||||
Pension
and
long-term VEBA contributions
|
—
|
1.5
|
2.6
|
3.0
|
|||||||||||||||
Tax
refunds
|
—
|
—
|
(0.3
|
)
|
—
|
||||||||||||||
Operating-related
cash flows
|
$
|
(2.9
|
)
|
$
|
(2.9
|
)
|
$
|
(2.3
|
)
|
$
|
(0.5
|
)
|
(a)
|
Primarily
payables and receivables between the sectors in the normal course
of
business, as shown in our Condensed Sector Statement of Cash Flows
for the
Automotive sector.
|
(b)
|
Primarily
the
exclusion of cash flow from short-term VEBA
contribution/(drawdown).
|
September
30,
|
December
31,
|
||||||
|
2005
|
2004
|
|||||
Total
debt
|
$
|
121.6
|
$
|
144.3
|
|||
Total
stockholder’s equity
|
10.6
|
11.5
|
|||||
Debt-to-equity
ratio (to 1)
|
11.5
|
12.6
|
September
30,
|
December
31,
|
|||||||||
|
2005
|
2004
|
||||||||
Total
debt
|
$
|
121.6
|
$
|
144.3
|
||||||
Securitized
off-balance sheet receivables outstanding
|
35.0
|
37.7
|
(a)
|
|
||||||
Retained
interest in securitized off-balance sheet receivables
|
(4.4
|
)
|
(9.5
|
)
|
(b)
|
|
||||
Adjustments
for cash and cash equivalents
|
(19.0
|
)
|
(12.7
|
)
|
||||||
Adjustments
for SFAS No. 133
|
(2.0
|
)
|
(3.2
|
)
|
||||||
Total
adjusted
debt
|
$
|
131.2
|
$
|
156.6
|
||||||
Total
stockholder’s equity (including minority interest)
|
$
|
10.6
|
$
|
11.5
|
||||||
Adjustments
for SFAS No. 133
|
(0.1
|
)
|
(0.1
|
)
|
||||||
Total
adjusted
equity
|
$
|
10.5
|
$
|
11.4
|
||||||
Managed
debt-to-equity ratio (to 1)
|
12.5
|
13.7
|
(a)
|
Includes
securitized funding from discontinued operations.
|
(b)
|
Includes
retained interest in securitized receivables from discontinued
operations.
|
DBRS
|
Fitch
|
Moody's
|
S&P
|
|||||||||
Long-
Term
|
Short-Term
|
Trend
|
Long-Term
|
Short-Term
|
Outlook
|
Long-Term
|
Short-Term
|
Outlook
|
Long-Term
|
Short-Term
|
Outlook
|
|
Ford
|
BB
(high)
|
R-3
(high)
|
Negative
|
BBB-
|
F2
|
Negative
|
Ba1
|
NA
|
Negative
|
BB+*
|
B-1*
|
Watch
Negative
|
Ford
Credit
|
BBB
(low)
|
R-2
(low)
|
Negative
|
BBB-
|
F2
|
Negative
|
Baa3
|
P-3
|
Negative
|
BB+*
|
B-1*
|
Watch
Negative
|
Hertz
|
BBB
**
|
R-2
(middle)
**
|
--
|
BBB-
|
F2
|
Watch
Negative
|
Baa3
***
|
P-3***
|
Under
Review
|
BBB-*
|
A-3*
|
Watch
Negative
|
Industry
Volume (SAAR
incl.
heavy trucks)
|
Planning
Assumptions
|
Full-Year
Outlook
|
|
U.S.
(million
units)
|
17.2
|
17.4
|
|
Europe
(million units)
|
17.3
|
17.5
|
|
Operation
Metrics
|
2005
Milestones
|
||
Quality
|
Improve
in all
regions
|
Flat
|
|
Market
share
|
Improve
in all
regions
|
Down
|
|
Automotive
cost performance *
|
Hold
costs
flat
|
Worse
|
|
Capital
spending
|
$7
billion or
lower
|
On
Track
|
Fourth
Quarter
|
|||||||
Business
Unit
|
Vehicle
Unit Production
|
2005
Over/(Under)
2004
|
|||||
Ford
North
America
|
810,000
|
(19,000
|
)
|
||||
Ford
Europe
|
445,000
|
11,000
|
|||||
PAG
|
180,000
|
—
|
• |
greater
price
competition resulting from industry overcapacity, currency fluctuations
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
market acceptance of new or existing
products;
|
• |
economic
distress of suppliers that may require us to provide financial support
or
take other measures to ensure supplies of
materials;
|
• |
work
stoppages at Ford or supplier facilities or other interruptions of
supplies;
|
• |
the
discovery
of defects in vehicles resulting in delays in new model launches,
recall
campaigns or increased warranty
costs;
|
• |
increased
safety, emissions, fuel economy or other regulation resulting in
higher
costs and/or sales restrictions;
|
• |
unusual
or
significant litigation or governmental investigations arising out
of
alleged defects in our products or
otherwise;
|
• |
worse-than-assumed
economic and demographic experience for our postretirement benefit
plans
(e.g., investment returns, interest rates, health care cost trends,
benefit improvements);
|
• |
currency
or
commodity price fluctuations, including, for example, last year's
sharp
rise in steel prices;
|
• |
changes
in
interest rates;
|
• |
an
increase
in or acceleration of the market shift from truck sales or from sales
of
other more profitable vehicles in the U.S.;
|
• |
economic
difficulties in any significant market;
|
• |
higher
prices
for or reduced availability of fuel;
|
• |
labor
or
other constraints on our ability to restructure our
business;
|
• |
a
change in
our requirements or obligations under long-term supply arrangements
pursuant to which we are obligated to purchase minimum quantities
or a
fixed percentage of output or pay minimum
amounts;
|
• |
additional
credit rating downgrades;
|
• |
inability
to
access debt or securitization markets around the world at competitive
rates or in sufficient amounts;
|
• |
higher-than-expected
credit losses;
|
• |
lower-than-anticipated
residual values and/or higher-than-expected return rates for leased
vehicles; and
|
• |
increased
price competition in the rental car industry and/or a general decline
in
business or leisure travel due to terrorist attacks, acts of war,
epidemic
disease
or
measures
taken by governments in response thereto that negatively affect the
travel
industry.
|
Period
|
Total
Number
of Shares Purchased a/
|
Average
Price
Paid per Share
|
Total
Number
of Shares Purchased as Part of Publicly Announced Plans or
Programs
|
Maximum
Number
(or Approximate Dollar Value) of Shares that May Yet Be Purchased
Under
the Plans or Programs
|
||||
July
1,
2005
through
July
31,
2005
|
2,065,113
|
$10.67
|
0
|
No
publicly
announced repurchase program in place
|
||||
August
1,
2005
through
August
31,
2005
|
2,423,770
|
$10.23
|
0
|
No
publicly
announced repurchase program in place
|
||||
September
1,
2005
through
September
30,
2005
|
2,056,965
|
$9.89
|
0
|
No
publicly
announced repurchase program in place
|
||||
Total
|
6,545,848
|
$10.26
|
0
|
|
||||
__________
|
||||||||
a/
|
We
currently
do not have a publicly announced repurchase program in place. Of
the
6,545,848 shares purchased, 6,527,415 shares were purchased from
the Ford
Motor Company Savings and Stock Investment Plan for Salaried Employees
("SSIP") and the Tax Efficient Savings Plan for Hourly Employees
("TESPHE"). Shares are generally purchased from the SSIP and TESPHE
when
participants in those plans elect to sell units in the Ford Stock
Fund
upon retirement, upon termination of employment with the Company,
related
to an in-service distribution, or to fund a loan against an existing
account balance in the Ford Stock Fund. Shares are not purchased
from
these plans when a participant transfers account balances out of
the Ford
Stock Fund and into another investment option under the plans. The
remaining shares were acquired from our employees or directors in
accordance with our various compensation plans as a result of share
withholdings to pay income taxes with respect to: (i) the lapse of
restrictions on restricted stock, (ii) the issuance of unrestricted
stock,
including issuances as a result of the conversion of restricted stock
equivalents, or (iii) to pay the exercise price and related income
taxes
with respect to certain exercises of stock
options.
|
FORD
MOTOR
COMPANY
|
||
(Registrant)
|
||
Date:
November
7, 2005
|
By:
|
/s/
James C.
Gouin
|
James
C.
Gouin
|
||
Vice
President and Controller
|
||
Designation
|
Description
|
Method
of
Filing
|
||
Exhibit
2
|
Stock
Purchase Agreement dated as of September 12, 2005 between
CCMG
Holdings, Inc., Ford Holdings LLC
and
Ford
Motor Company
|
Filed
with
this Report
|
||
Exhibit
12
|
Ford
Motor
Company and Subsidiaries Calculation of Ratio of Earnings to Combined
Fixed Charges and Preferred Stock Dividends
|
Filed
with
this Report
|
||
Exhibit
15
|
Letter
of
PricewaterhouseCoopers LLP, Independent Registered Public Accounting
Firm,
dated November 7, 2005, relating to Financial Information
|
Filed
with
this Report
|
||
Exhibit
31.1
|
Rule
15d-14(a) Certification of CEO
|
Filed
with
this Report
|
||
Exhibit
31.2
|
Rule
15d-14(a) Certification of CFO
|
Filed
with
this Report
|
||
Exhibit
32.1
|
Section
1350
Certification of CEO
|
Furnished
with this Report
|
||
Exhibit
32.2
|
Section
1350
Certification of CFO
|
Furnished
with this Report
|
||