Ford Reports Preliminary Q3 2006 Financial Results


The company ended the quarter with total cash, including automotive cash, marketable securities, loaned securities and short-term Voluntary Employee Beneficiary Association (VEBA) assets at Sept. 30, 2006 of $23.6 billion, unchanged from the end of the second quarter. The company's operating-related cash flow was $3.1 billion negative for the quarter. During the quarter, $3.0 billion was transferred out of long-term VEBA and is now included in total cash.

Don Leclair, executive vice president and chief financial officer said, "As we restructure our business we will continue to make investments in products necessary to ensure Ford's future success. Throughout this period, maintaining strong liquidity will continue to be a high priority."


At 9 a.m. EDT, Alan Mulally and Don Leclair will host a conference call for news media and analysts to discuss the preliminary third quarter financial results and issues related to SFAS 133.

As a result, the previously scheduled fixed-income conference call has been canceled.

The presentations (listen-only) and supporting materials will be available on the Internet at Representatives of the news media and the investment community participating by teleconference will have the opportunity to ask questions following the presentations.

    Access Information - Monday, Oct. 23
    Earnings: 9:00 a.m. EDT
    Toll Free: 800-706-7741
    International: 617-614-3471
    Earnings Passcode: "Ford Earnings"

    Replays - Available through Monday, Oct. 30
    Toll Free: 888-286-8010
    International: 617-801-6888

    Earnings: 29481628

    About Ford Motor Company:

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 (e.g., an escalation or expansion of armed conflict in or beyond
       the Middle East) 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
    -- 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
    -- 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. For additional discussion, see "Item 1A. Risk Factors" in our 2005 10-K Report.


                                                   Third Quarter
                                        Pre-Tax      After-Tax      Earnings
                                         Profit        Profit      Per Share*
                                        (Mils.)         (Mils.)

        Income/(Loss)  from
          Continuing  Operations
          Excluding  Special  Items                        $(1,379)            $(1,170)            $(0.62)

        Special  Items
        --  Jobs  Bank/Employee  Separation            $(861)
        --  Additional  Personnel  Reduction
                Programs                                                      (259)
        --  Pension  Curtailment  Charges                  (437)
        --  Fixed  Asset  Impairment
              --  North  America                                    (2,200)
              --  Jaguar/Land  Rover                            (1,600)
        --  Other  Gains                                                      99
                      Total  Special  Items                    $(5,258)            $(4,630)            $(2.46)

                      Income/(Loss)  from
                        Continuing  Operations              $(6,637)            $(5,800)            $(3.08)

        Deferred  Tax  Asset  Valuation
          Allowance  Included  Above                                                  $(2,221)

        *  Earnings  per  share  from  continuing  operations  is  calculated  on  a  basis
            that  includes  pre-tax  profit,  provision  for  taxes,  and  minority
            interest;  additional  information  regarding  the  method  of  calculating
            earnings  per  share  is  available  in  the  materials  supporting  the  Oct.  23,
            2006,  conference  calls  at  .

        **  Results  exclude  accounting  corrections  related  to  SFAS  133.

        Appendix:  Detailed  Explanation  of  Third-Quarter  Special  Items  and  Other

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