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News of  February 28, 2001
.

Ford reports record revenues, unit sales, operating earnings per share in 2000

DEARBORN, Mich. - Ford Motor Company earned $5.4 billion from continuing operations in 2000 on record revenues and volume as it made significant progress moving toward a consumer-focused organization.

Excluding unusual items, 2000 operating earnings were $6.7 billion, or a record $3.26 per fully diluted share, up 4 percent from 1999 on a comparable basis. Revenues for 2000 were a record at $170 billion, up 6 percent. Vehicle unit sales rose 3 percent to a record 7.4 million. Full-year results for both periods exclude Visteon Corp., spun off June 28. 

"Customers are the foundation of our strategy," said Jacques Nasser, president and CEO. "At the beginning of the year we reorganized the company around consumer business groups. We launched consumer-driven 6-Sigma and adopted new E-commerce initiatives across the organization that together have transformed how we do business on a day-to-day basis."

Ford Credit and The Hertz Corporation both had excellent results. Ford Credit's earnings were up 22 percent to $1.54 billion. Hertz had record income of $358 million, its ninth consecutive year of increased earnings. 

Fourth Quarter

Fourth quarter 2000 results were below a year ago, primarily because of weaker vehicle industry conditions in the United States. Earnings from continuing operations (excluding Visteon) were $1.1 billion or 57 cents per fully diluted share of common and Class B stock. Quarterly results include a one-time charge of $133 million, or 7 cents a share, for the write-down of assets associated with the Nemak joint venture on castings. A year ago, earnings from continuing operations were $1.7 billion or $1.39 per diluted share. 

Fourth quarter 2000 operating earnings (excluding Visteon and one-time items) were $1.2 billion, or 64 cents per fully diluted share of common and Class B stock. Operating earnings for the 1999 fourth quarter, were $1.8 billion or 83 cents per diluted share, adjusted for the Value Enhancement Plan. 

Highlights from 2000 included:

Shareholder value: Ford returned $5.7 billion in cash to shareholders through the Value Enhancement Plan, spun off Visteon and purchased $1 billion of stock under our $5 billion stock repurchase plan. 

Products and brands: Volvo was successfully integrated, the acquisition of Land Rover was completed and several new products were introduced, such as the Escape sport utility vehicle, Explorer Sport Trac, Volvo S60 and Mondeo and Transit in Europe; Ford Focus was the world's best-selling car, and Ford F-Series the top-selling truck. 

Transformation: Internet and E-business initiatives were

 implemented, including an employee personal computer program, alliances with Yahoo and Trilogy Software, and the Wingcast telematics joint venture with Qualcomm Inc.

Automotive Operations

Ford Motor Company earned $3.62 billion from continuing automotive operations in 2000 on revenues of $141 billion. That compares to $4.99 billion on revenues of $135 billion a year ago. 

Worldwide factory unit sales for the year were 7.4 million units, topping the previous record of 7.2 million set in 1999. Total costs were down $500 million at constant volume and mix. Cost improvements were below the $1 billion goal, primarily reflecting the Firestone tire recall and the 3.8 liter engine warranty extension. Automotive gross cash at year-end was $16.5 billion.

Income from continuing operations in the fourth quarter was $629 million, down from $1.35 billion a year ago. Revenue from automotive operations was $35.1 billion, versus $37.3 billion. Worldwide vehicle unit sales in the fourth quarter were 1.8 million units, down from 1.9 million a year ago.

North America: Full-year 2000 earnings were $4.89 billion on revenues of $103.9 billion, down from $5.42 billion on revenues of $99.2 billion in 1999.

Fourth-quarter 2000 earnings were $607 million on revenues of $25.6 billion. That compares to $1.47 billion on revenues of $27.1 billion. The reduction primarily reflects lower industry sales and market share, and higher marketing costs.

Europe: Full-year 2000 loss were $1.13 billion on revenues of $28.7 billion after several one-time items, including a $1 billion charge for asset impairments and restructuring. On an operating basis, Europe had a loss of $35 million. A year ago, Europe had a profit of $50 million, or $10 million on an operating basis, on revenues of $29.3 billion. 

Fourth-quarter results were a profit of $33 million on revenues of $7.3 billion reflecting continued cost reductions. The 1999 fourth quarter was a loss of $30 million on revenues of $8.5 billion.

South America: Full-year results improved to a loss of $240 million on revenues of $2.5 billion. Last year, Ford lost $444 million on revenues of $2.3 billion. 

Fourth-quarter losses were $31 million on revenues of $642 million. The year-earlier period was a $100 million loss on revenues of $537 million. The improvement over a year ago reflects continued cost reductions and better revenue and product mix.

Asia-Pacific and other markets: Full-year profits were $108 million on sharply higher revenues of $6.2 billion. That compares to a $38 million loss on revenues of $4.2 billion.

Fourth-quarter 2000 results were a $20 million profit on revenues of $1.5 billion. That compares to a profit of $10 million on revenues of $1.1 billion.

Ford Credit

Ford Credit earned $1.54 billion in 2000, up 22 percent from 1999. In the fourth quarter, Ford Credit earned $410 million, an increase of $101 million, primarily because of higher volume and an improved net financing margin, offset partially by higher credit losses associated with the restructuring of North American operations.

Hertz

Hertz reported full-year 2000 earnings of $358 million, up from $336 million in 1999. It was the ninth consecutive year of improved earnings for Hertz. In the fourth quarter Hertz earned $56 million, down $5 million from the year-earlier period.

MILESTONES

For 2000, Ford reached its milestones for revenue growth, South America, Asia-Pacific, capital spending, Ford Credit, Hertz and Visteon. Ford missed its milestones for total shareholder returns, total cost reductions and North America and Europe.

Ford last week set its financial milestones for 2001 and reaffirmed its customer-focused strategy. Ford has a goal of growing total company revenues by $5 billion from record levels in 2000. In North America, Ford has targeted a 4 percent-plus return on sales despite softening market conditions. In Europe, we have a goal of improving results to a 1-percent plus return on sales. Ford also has goals of improving results in South America and achieving profitability in Asia-Pacific.

Total costs, assuming constant volume and mix, are targeted to be reduced by $1 billion, and capital spending will be contained at $8 billion or less. Ford Credit has a milestone of improving returns and growing its earnings by 10 percent.

Ford Motor Company and Subsidiaries - HIGHLIGHTS

Ford Motor Company and Subsidiaries - VEHICLE UNIT SALES

Vehicle unit sales generally are reported worldwide on a "where sold" basis and include sales of all Ford-badged units, as well as units manufactured by Ford and sold to other manufacturers.

Prior periods were restated to correct reported unit sales.

(Jan. 18, 2001)

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