CASH AND LIQUIDITY
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."
THIRD-QUARTER CONFERENCE CALL DETAILS
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 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 - 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 http://www.shareholder.ford.com Toll Free: 888-286-8010 International: 617-801-6888 Passcodes: 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 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. For additional discussion, see "Item 1A. Risk Factors" in our 2005 10-K Report.
TOTAL COMPANY 2006 THIRD QUARTER INCOME FROM CONTINUING OPERATIONS COMPARED WITH NET INCOME - PRELIMINARY** 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) Memo: 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 http://www.shareholder.ford.com . ** Results exclude accounting corrections related to SFAS 133. Appendix: Detailed Explanation of Third-Quarter Special Items and Other Changes