FDM Group Regulatory News (FDM)

26 Jul 2007 14:57

Ford Motor Co26 July 2007 NEWS Contact: Media: Equity Investment Fixed Income Shareholder Inquiries:Becky Sanch Community: Investment Community: 1.800.555.5259 or1.313.594.4410 Larry Heck Rob Moeller 1.313.845.8540bsanch@ford.com 1.313.594.0613 1.313.621.0881 stockinf@ford.com ford@ford.com fixedinc@ford.com FOR IMMEDIATE RELEASE FORD REPORTS A NET PROFIT OF $750 MILLION FOR SECOND QUARTER 2007* • Revenue of $44 billion, 6 percent above second quarter 2006. • Net income of $750 million, or 31 cents per share, for the second quarter of 2007. • Profit of $258 million, or 13 cents per share, from continuing operations excluding special items.** • Significant year-over-year improvement for all Automotive operations. • Ford Motor Credit pre-tax profit of $112 million. • Cost reductions of $600 million; $1.1 billion through the first half of 2007. • Automotive gross cash at June 30, 2007 of $37.4 billion (including cash and cash equivalents, net marketable securities, loaned securities and short-term Voluntary Employee Benefits Association (VEBA) assets).*** DEARBORN, Mich., July 26, 2007 - Ford Motor Company (NYSE: F) today reported anet profit of 31 cents per share, or $750 million, for the second quarter of2007. This compares with a net loss of 17 cents per share, or $317 million, inthe second quarter of 2006. Ford's second-quarter revenue was $44.2 billion, up from $41.9 billion a yearago. The increase primarily reflected currency exchange, mix and net pricingimprovements, partially offset by lower volume. Ford's second-quarter profit from continuing operations, excluding specialitems, was 13 cents per share, or $258 million, compared with a loss of 6 centsper share, or $118 million, in the same period a year ago.** Special items - which primarily reflected the sale of Aston Martin and therecognition of previously deferred gains on certain hedges at Jaguar and LandRover - increased pre-tax results by $443 million in the second quarter. With regard to Jaguar and Land Rover, the company confirmed it is currentlyexploring in greater detail the potential sale of the combined business and isin discussions with selected parties who have expressed interest. The companyalso is conducting a strategic review of Volvo that likely will conclude priorto year-end. ________________________________________________________________________________* The financial results discussed herein are presented on a preliminary basis; final data will be included in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2007. ** 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 U.S. Generally Accepted Accounting Principles ("GAAP"). *** See table following "Safe Harbor/Risk Factors" for a reconciliation of Automotive gross cash to GAAP. Total Company - 2007 Second Quarter Financial Results Second Quarter ___________________ 2007 O/(U) 2006 ________ ________ Wholesales (000) 1,773 (33) Revenue (Bils.) $ 44.2 $ 2.3 Continuing Operations (Excluding Special Items)* Pre-Tax Profits (Mils.) $ 483 $ 774 After-Tax Profits (Mils.) 258 376 Earnings Per Share ** 0.13 0.19 Special Items Pre-Tax (Mils.) $ 443 $ 820 Net Income After-Tax Profits (Mils.) $ 750 $ 1,067 Earnings Per Share** 0.31 0.48 Automotive Gross Cash (Bils.)*** $ 37.4 $ 13.8 * See tables following "Safe Harbor/Risk Factors" for reconciliations to GAAP. ** Earnings per share is calculated on a basis that includes pre-tax profit and provision for taxes and minority interest. See tables following "Safe Harbor/Risk Factors" for the nature and amount of these special items and reconciliations to GAAP. *** See table following "Safe Harbor/Risk Factors" for a reconciliation of Automotive gross cash to GAAP. "We continue to focus on the four priorities of our plan - restructuring thebusiness to operate profitably, accelerating the development of new productsthat our customers want and value, funding our plan and improving our balancesheet, and working even more effectively together as one global Ford team,leveraging our assets," said Ford President and Chief Executive Officer AlanMulally. "Our team is very encouraged by the significant progress we aremaking. We recognize the challenges that lie ahead and remain fully committedto delivering our plan." Second-quarter and first-half highlights: • Strong performance in the J.D. Power and Associates Initial Quality Survey, with five segment winners - Ford Mustang, Mercury Milan, Lincoln MKZ and Mark LT, and Mazda MX-5 Miata - more than any other manufacturer. • Ford Edge recognized as "Highest-Ranked Midsize MAV" in the J.D. Power and Associates Automotive Performance, Execution and Layout (APEAL) Study. • Fifth consecutive year of improved manufacturing productivity as measured by the Harbour Report North America 2007. • Ford Edge the best-selling mid-size crossover in second quarter. • Ford Taurus, Mercury Sable and Ford Taurus X earned five-star crash-test ratings from the National Highway Traffic Safety Administration (NHTSA). • Ford earned the most Top Safety Picks from the Insurance Institute for Highway Safety (IIHS) in the company's history, with Ford Edge, Ford Taurus, Ford Taurus X, Lincoln MKX and Mercury Sable taking top honors. • Strong Ford Europe sales - up about 5 percent in first half of 2007. • Record Land Rover sales - up 8 percent in first half of 2007. • Ford China sales up 22 percent in first half of 2007. • Achieved $1.1 billion in cost savings in first half 2007, including $600 million in the second quarter. • Reduced North America personnel by 6,400 in the second quarter. • Completed sale of Automobile Protection Corporation (APCO) and Aston Martin. The following discussion of the results of our Automotive sector and Automotivesegments/business units is on a basis that excludes special items. See tablefollowing "Safe Harbor/Risk Factors" for the nature and amount of these specialitems and any necessary reconciliations to GAAP. AUTOMOTIVE SECTOR On a pre-tax basis, worldwide Automotive sector profits in the second quarterwere $378 million. This compares with a pre-tax loss of $716 million during thesame period a year ago. The improvements were more than explained by favorablenet pricing and cost reductions, partially offset by unfavorable currencyexchange. Vehicle wholesales in the second quarter were 1,773,000, down from 1,806,000 ayear ago. Worldwide Automotive revenue for the second quarter was $40.1billion, up from $37.8 billion in the same period last year. The increaseprimarily reflected currency exchange, mix and net pricing improvements,partially offset by lower volume. Automotive gross cash, which includes cash and cash equivalents, net marketablesecurities, loaned securities and short-term VEBA assets, was $37.4 billion atJune 30, 2007, up from $35.2 billion at the end of the first quarter. Ford North America: In the second quarter, Ford North America reported a pre-taxloss of $279 million, compared with a pre-tax loss of $789 million a year ago. The improvement primarily reflected favorable net pricing and cost reductions,partially offset by lower volume net of mix. Revenue was $18.8 billion, downfrom $19.1 billion for the same period a year ago. Ford South America: Ford South America reported a second-quarter pre-tax profitof $255 million, compared with a pre-tax profit of $99 million a year ago. Theimprovement was primarily explained by favorable net pricing and volume. Secondquarter revenue improved to $1.8 billion from $1.3 billion in 2006. Ford Europe: Ford Europe's second-quarter pre-tax profit was $262 million,compared with a pre-tax profit of $185 million during the same period in 2006. The improvement was more than explained by favorable net pricing and highervolumes, partially offset by higher manufacturing costs, primarily to supportincreased volumes. During the second quarter of 2007, Ford Europe's revenue was$9.2 billion, compared with $7.5 billion during the second quarter of 2006. Premier Automotive Group (PAG): PAG reported a pre-tax profit of $140 millionfor the second quarter, compared with a pre-tax loss of $162 million for thesame period in 2006. All PAG brands improved compared with the same period in2006. The improvement was more than explained by favorable cost performanceacross all brands, including the non-recurrence of adverse 2006 adjustments towarranty accruals. Favorable net pricing was more than offset by the effect ofthe continued weakening of the U.S. dollar against key European currencies. Second-quarter 2007 revenue was $8.4 billion, compared with $7.8 billion a yearago. Ford Asia Pacific and Africa: For the second quarter, Ford Asia Pacific andAfrica reported a pre-tax profit of $26 million, compared with a pre-tax profitof $4 million a year ago. The improvement reflected strong cost performance,including restructuring savings, and improved results in China. These factorswere partially offset by lower volume and adverse mix, more than explained byAustralia and Taiwan, and unfavorable currency exchange. Revenue was $1.7billion for the second quarter of 2007, compared with $1.8 billion in 2006. Mazda: For the second quarter, Ford earned $81 million from its investment inMazda and associated operations, compared with $32 million during the sameperiod a year ago. Other Automotive: Second-quarter results included a pre-tax loss of $107million, compared with a loss of $85 million a year ago. The year-over-yeardecline was more than explained by higher interest expense associated withfinancing actions taken in the fourth quarter of 2006. This was partiallyoffset by increased interest income. FINANCIAL SERVICES SECTOR For the second quarter, the Financial Services sector earned a pre-tax profit of$105 million, compared with a pre-tax profit of $425 million a year ago. Ford Motor Credit Company: Ford Motor Credit Company reported net income of $62million in the second quarter of 2007, down $242 million from earnings of $304million a year earlier. On a pre-tax basis from continuing operations, FordMotor Credit earned $112 million in the second quarter compared with $435million in the previous year. The decrease in earnings primarily reflectedhigher borrowing costs, lower credit loss reserve reductions, higherdepreciation expense for leased vehicles and higher net losses related to marketvaluation adjustments from derivatives. Lower expenses, primarily reflectingimproved operating costs, were a partial offset. In the second quarters of 2007 and 2006, pre-tax earnings were $428 million and$667 million, excluding the net losses related to market valuation adjustmentsfrom derivatives, which were $316 million and $232 million, respectively. Ford expects Ford Motor Credit to earn on a pre-tax basis $1.3 billion to $1.4billion this year, excluding the impact of gains and losses related to marketvaluation adjustments from derivatives, up from the previous estimate of $1.2billion. SECOND-QUARTER CONFERENCE CALL DETAILS Ford Motor Company (NYSE:F) will release second quarter 2007 financial resultsat 7 a.m. EDT, Thursday, July 26. The following briefings will be held after theannouncement: At 9 a.m. EDT, Alan Mulally, president and chief executive officer, and DonLeclair, executive vice president and chief financial officer, will host aconference call for news media and the investment community to discuss secondquarter results. Following the earnings call, at 11 a.m. EDT, Ford Senior Vice President andController Peter Daniel, Ford Vice President and Treasurer Neil Schloss and FordMotor Credit Company Vice Chairman and Chief Financial Officer K.R. Kent willhost a conference call for fixed income analysts and investors. The presentations (listen-only) and supporting materials will be available onthe Internet at www.shareholder.ford.com. Representatives of the news media andthe investment community participating by teleconference will have theopportunity to ask questions following the presentations. Access Information - Thursday, July 26Toll Free: 800-573-4754International: 617-224-4325 Earnings: 9:00 a.m. EDTEarnings Passcode: "Ford Earnings" Fixed Income: 11:00 a.m. EDTFixed Income Passcode: "Ford Fixed Income" Replays - Available through Thursday, August 2www.shareholder.ford.comToll Free: 888-286-8010 International: 617-801-6888 Passcodes:Earnings: 29481628Fixed Income: 55865600 Ford Motor Company, a global automotive industry leader based in Dearborn,Mich., manufactures or distributes automobiles in 200 markets across sixcontinents. With about 260,000 employees and about 100 plants worldwide, thecompany's core and affiliated automotive brands include Ford, Jaguar, LandRover, Lincoln, Mercury, Volvo and Mazda. The company provides financialservices through Ford Motor Credit Company. For more information regardingFord's products, please visit www.fordvehicles.com. - # # # - Safe Harbor/Risk Factors Statements included or incorporated by reference herein may constitute "forward-looking statements" within the meaning of the Private Securities LitigationReform 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 differmaterially from those stated, including, without limitation: • Continued decline in market share; • Continued or increased price competition resulting from industry overcapacity, currency fluctuations or other factors; • An increase in or acceleration of market shift away from sales of trucks, sport utility vehicles, or other more profitable vehicles, particularly in the United States; • A significant decline in industry sales, particularly in the United States or Europe, resulting from slowing economic growth, geo-political events or other factors; • Lower-than-anticipated market acceptance of new or existing products; • Continued or increased high prices for or reduced availability of fuel; • Currency or commodity price fluctuations; • Adverse effects from the bankruptcy or insolvency of, change in ownership or control of, or alliances entered into by a major competitor; • 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; • Labor or other constraints on our ability to restructure our business; • Work stoppages at Ford or supplier facilities or other interruptions of supplies; • Single-source supply of components or materials; • Substantial pension and postretirement health care and life insurance liabilities impairing our liquidity or financial condition; • Worse-than-assumed economic and demographic experience for our postretirement benefit plans (e.g., discount rates, investment returns, and health care cost trends); • The discovery of defects in vehicles resulting in delays in new model launches, recall campaigns or increased warranty costs; • Increased safety, emissions (e.g., CO2), fuel economy, or other (e.g., pension funding) regulation resulting in higher costs, cash expenditures, and/or sales restrictions; • Unusual or significant litigation or governmental investigations arising out of alleged defects in our products or otherwise; • 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); • Adverse effects on our results from a decrease in or cessation of government incentives; • Adverse effects on our operations resulting from certain geo-political or other events; • Substantial negative Automotive operating-related cash flows for the near- to medium-term affecting our ability to meet our obligations, invest in our business or refinance our debt;< • Substantial levels of Automotive indebtedness adversely affecting our financial condition or preventing us from fulfilling our debt obligations (which may grow because we are able to incur substantially more debt, including additional secured debt); • Inability of Ford Credit to access debt or securitization markets around the world at competitive rates or in sufficient amounts due to additional credit rating downgrades or otherwise; • Higher-than-expected credit losses; • Increased competition from banks or other financial institutions seeking to increase their share of financing Ford vehicles; • Changes in interest rates; • Collection and servicing problems related to finance receivables and net investment in operating leases; • Lower-than-anticipated residual values or higher-than-expected return volumes for leased vehicles; and • New or increased credit, consumer or data protection or other regulations resulting in higher costs and/or additional financing restrictions. We cannot be certain that any expectation, forecast or assumption made bymanagement in preparing forward-looking statements will prove accurate, or thatany projection will be realized. It is to be expected that there may bedifferences between projected and actual results. Our forward-lookingstatements speak only as of the date of their initial issuance, and we do notundertake any obligation to update or revise publicly any forward-lookingstatement, whether as a result of new information, future events, or otherwise. TOTAL COMPANY INCOME/(LOSS) FROM CONTINUING OPERATIONS COMPARED WITH NET INCOME/(LOSS) Second Quarter _____________________ 2007 2006 ________ ________ Revenue (Bils.) $ 44.2 $ 41.9 Income (Mils.) Pre-Tax Income/(Loss) from Continuing Operations (Excluding Special Items) $ 483 $ (291) Special Items* 443 (377) ________ ________ Pre-Tax Income/(Loss) from Continuing Operations $ 926 $ (668) Minority Interest in Net Income/(Loss) of Subsidiaries 85 19 Provision for/(Benefit from) Income Taxes 123 (364) ________ ________ Income/(Loss) from Continuing Operations $ 718 $ (323) Income/(Loss) from Discontinued Operations 32 6 ________ ________ Net Income/(Loss) $ 750 $ (317) ======== ========* Special items detailed in following table. TOTAL COMPANY SPECIAL ITEMS Second Quarter _____________________ 2007 2006 ________ ________ (Mils.) (Mils.) Ford North America Separation Programs $ 55 $ 7 Related OPEB Curtailment 148 - Related Pension Curtailment - (489) ________ ________ Subtotal Ford North America $ 203 $ (482) Ford Europe Personnel-Reduction Programs/Other (78) (14) PAG Sale of Aston Martin 206 - PAG Recognition of Previously Deferred Hedging Gains 182 - PAG Personnel-Reduction Programs/Other (62) (18) Mazda Pension Transfer - 137 Ford Asia Pacific and Africa Personnel-Reduction Programs (8) - ________ ________ Total Pre-Tax Special Items $ 443 $ (377) ======== ======== Memo: Impact on Earnings Per Share* $ 0.17 $ (0.11) * Earnings per share for special items is calculated on a basis that includes the pre-tax amount and a provision for taxes; additional information regarding the method of calculating earnings per share is available in the materials supporting the July 26, 2007, conference calls at www.shareholder.ford.com. AUTOMOTIVE GROSS CASH RECONCILIATION TO GAAP June 30, 2007 B/(W) Memo: March 31, June 30, March 31, June 30, 2007 2007 2007 2006 (Bils.) (Bils.) (Bils.) (Bils.) _________ ________ _________ ________ Cash and Cash Equivalents $ 15.7 $ 17.1 $ 1.4 $ 14.7 Marketable Securities 16.8 13.7 (3.1) 8.9 Loaned Securities 0.7 4.6 3.9 0 Total Cash/Market. and Loaned Securities $ 33.2 $ 35.4 $ 2.2 $ 23.6 Securities-In-Transit (0.2) (0.3) (0.1) - Short-Term VEBA Assets 2.2 2.3 0.1 - _______ _______ ______ ______ Gross Cash $ 35.2 $ 37.4 $ 2.2 $ 23.6 ======= ======= ====== ====== This information is provided by RNS The company news service from the London Stock Exchange