Mazda: During the first quarter of 2006, Ford's share of Mazda profits and associated operations was $45 million, compared with $54 million during the same period a year ago. The decline primarily reflected lower gains during the quarter on our investment in Mazda's convertible bonds. All of these bonds have now been converted to equity.
First-quarter results included a loss of $162 million in Other Automotive, compared with a loss of $262 million a year ago. The year-over-year improvement primarily reflected higher interest income from our cash portfolio, due to higher short-term interest rates and higher cash balances.
FINANCIAL SERVICES SECTOR
For the first quarter, Financial Services sector earned a pre-tax profit of $744 million, compared with pre-tax profits of $1.1 billion a year ago.
Ford Motor Credit Company: Ford Motor Credit Company reported net income of $479 million in the first quarter of 2006, down $231 million from earnings of $710 million a year earlier. On a pre-tax basis from continuing operations, Ford Motor Credit earned $751 million in the first quarter, compared with $1.1 billion in the previous year. The decrease in earnings primarily reflected higher borrowing costs, the impact of lower receivable levels and higher depreciation expense, partially offset by improved credit loss performance.
FULL-YEAR SPECIAL ITEMS
The company previously announced it anticipated full-year pre-tax special items of about $1 billion, with further study required to assess additional costs stemming from the Way Forward plan and to determine appropriate accounting for these costs. The present expectation is that total full-year pre-tax special items, including jobs bank-related costs and associated pension curtailment charges, will be about $3.4 billion.
Executive Vice President and Chief Financial Officer Don Leclair said, "Today's results reflect the business environment we are facing and the actions we are taking to address our issues. We remain committed to implementing our plans to turn around the automotive business."
FIRST QUARTER CONFERENCE CALL DETAILS
Ford Motor Company will release first quarter 2006 financial results at 7 a.m. EDT on Friday, April 21. The following briefings will be held after the announcement:
At 9 a.m. EDT, Chairman and CEO, Bill Ford, and Executive Vice President and CFO, Don Leclair, will host a conference call for news media and analysts to discuss first-quarter financial results.
Following the earnings call, at 11 a.m. EDT, Ford Vice President and Treasurer Ann Marie Petach, Ford Motor Credit Company Vice Chairman and CFO K.R. Kent, and Ford Vice President and Controller Jim Gouin, will host a conference call for fixed income analysts and investors.
The presentations (listen-only) and supporting materials will be available on the Internet at http://www.shareholder.ford.com. Representatives of the news media and the investment community participating by teleconference will have the opportunity to ask questions following the presentations.
Access Information - Friday, April 21 Toll Free: 800-706-7741 International: 617-614-3471 Earnings: 9:00 a.m. EDT Earnings Passcode: "Ford Earnings Call" Fixed Income: 11:00 a.m. EDT Fixed Income Passcode: "Ford Fixed Income" Replays - Available through Friday, April 28 http://www.shareholder.ford.com Toll Free: 888-286-8010 International: 617-801-6888 Passcodes: Earnings: 29481628 Fixed Income: 55865600
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures and distributes automobiles in 200 markets across six continents. With about 300,000 employees and 108 plants worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Motor Credit Company.
Safe Harbor/Risk Factors
Statements included or incorporated by reference herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform 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 differ materially 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; -- A market shift (or an increase in or acceleration of market shift) away from sales of trucks or sport utility vehicles, or from sales of other more profitable vehicles 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 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; -- Work stoppages at Ford or supplier facilities or other interruptions of supplies; -- Single-source supply of components or materials; -- Labor or other constraints on our ability to restructure our business; -- 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, 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"); -- Inability 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; -- New or increased credit, consumer or data protection or other regulations resulting in higher costs and/or additional financing restrictions; and -- Inability to implement the Way Forward plan.
We cannot be certain that any expectation, forecast or assumption made by management in preparing these forward-looking statements will prove accurate, or that any projection will be realized. It is to be expected that there may be differences between projected and actual results. Our forward-looking statements speak only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.