Ford Motor Company Reports 2006 Q4 And FY Results

- Automotive liquidity of $46 billion at year-end 2006 including credit facilities.

DEARBORN, Mich., Jan. 25 /PRNewswire-FirstCall/ -- Ford Motor Company [NYSE: F] today reported a 2006 full-year net loss of $12.7 billion, or $6.79 per share. In 2005, the company reported net income of $1.4 billion, or 77 cents per share.

Excluding special items, Ford's 2006 full-year after-tax loss from continuing operations totaled $2.8 billion, or $1.50 per share. This compares to year-ago earnings from continuing operations of $1.9 billion, or $1.00 per share, excluding special items.**

Special items, which primarily reflected costs associated with restructuring efforts and fixed asset impairments, reduced full-year results on an after-tax basis by a total of $9.9 billion or $5.29 per share. The total pre-tax effect of full-year special items was $11.9 billion.

Full-year sales and revenue for 2006 was $160.1 billion, compared to $176.9 billion a year ago.

    * The financial results discussed herein are presented on a preliminary
      basis; final data will be included in our Annual Report on Form 10-K for
      the year ended Dec. 31, 2006 (Form 10-K Report).

    **See table following "Safe Harbor/Risk Factors" for the nature and amount
      of these special items and a reconciliation to U.S. GAAP.

    Ford Motor Company highlights in 2006 included:

    -- Alan Mulally joining Ford as president and CEO in September.
    -- An "accelerated" Way Forward plan to return North America to
       profitability no later than 2009 that calls for idling and ceasing
       operations at 16 manufacturing facilities through 2012, including seven
       vehicle assembly plants.  The plan also calls for achieving a
       cumulative $5 billion in reduced operating costs by 2008, compared to
       2005, and for 70 percent of Ford, Lincoln, and Mercury products by
       volume to be new or significantly upgraded by 2008.
    -- The idling of St. Louis Assembly in March and Atlanta Assembly in
       October, consistent with the North America restructuring plan.
    -- An agreement with the UAW to extend a variety of voluntary buyout
       offers to all U.S. Ford and Automotive Component Holdings, LLC (ACH)
       hourly employees.  Through Dec. 31, 2006, more than 38,000 hourly
       employees had accepted offers.  Many of the offers include an
       employee's opportunity to rescind acceptance up until the time of
       separation from the company.  In addition, the company realized cost
       savings from the implementation of its health care agreement with the
    -- Efforts to reduce North America salaried-related costs by a third,
       which will reduce the salaried work force by the equivalent of 14,000
       positions.  In addition, we implemented cost-saving revisions to
       salaried benefit plans.
    -- Agreement in principle to sell three facilities now operated by ACH.
       Ford intends to sell or close all ACH facilities by the end of 2008.
    -- Plans to sell Automobile Protection Corporation (APCO), a subsidiary
       that offers vehicle service contracts to dealers of all makes and
       models, and all or part of Aston Martin.
    -- Launching new products that received strong initial feedback, including
       the Ford Edge and Lincoln MKX, Ford Expedition and Lincoln Navigator in
       North America, the Ford S-MAX, Ford Galaxy and Ford Transit in Europe,
       the Jaguar XK, Land Rover LR2, Volvo S80 and C30 and Mazda CX9.
    -- Ford S-MAX being named European Car of the Year 2007 and Ford Transit
       receiving International Van of the Year 2007.  Ford also won the 2006
       FIA World Rally Championship Manufacturers' Trophy.
    -- Record sales in China and India.
    -- A corporate realignment in December that streamlined the organization
       and formed a Global Product Development team, to better integrate and
       leverage global resources across the automotive business units.
    -- Obtaining $23.5 billion of new liquidity in December, including a
       convertible debt offering of about $5 billion, a secured term loan of
       $7 billion and a secured revolving credit facility of $11.5 billion.
       This resulted in total automotive liquidity of $46 billion at year-end

"We began aggressive actions in 2006 to restructure our automotive business so we can operate profitably at lower volumes and with a product mix that better reflects consumer demand for smaller, more fuel efficient vehicles," said Alan Mulally, Ford's president and chief executive officer. "We fully recognize our business reality and are dealing with it. We have a plan and we are on track to deliver."


In the fourth quarter, the company reported a net loss of $5.8 billion, or $3.05 per share. This compares to a fourth-quarter net loss of $74 million, or 4 cents per share, in 2005. Excluding special items, the fourth-quarter after-tax loss from continuing operations totaled $2.1 billion, or $1.10 per share, compared to a profit of $285 million, or 15 cents per share, a year ago.*

Special items in the quarter included the costs associated with North America restructuring efforts. On an after-tax basis, special items reduced fourth-quarter earnings by a total of $3.7 billion or $1.95 per share. The total pre-tax effect of fourth-quarter special items was $3.8 billion. (See appendix at the end of this press release for a detailed explanation of special items and other charges during the period.)

Total sales and revenue in the fourth quarter were $40.3 billion, compared to $46.3 billion in the year-ago period.

*See table following "Safe Harbor/Risk Factors" for the nature and amount of these special items and a reconciliation to U.S. GAAP.

The following discussion of the preliminary pre-tax results of our Automotive sector and Financial Services sector, by segment or business unit, is on a basis that excludes special items. See table following "Safe Harbor/Risk Factors" for the nature and amount of these special items and a reconciliation to U.S. GAAP.


For the full year, Ford's worldwide Automotive sector reported a pre-tax loss of $5.2 billion, compared to a pre-tax loss of $993 million a year ago. The decline primarily reflected unfavorable volume and mix, unfavorable net pricing and currency exchange, partially offset by favorable cost performance and higher interest income.

For the fourth quarter, Ford's worldwide Automotive sector reported a pre- tax loss of $2.5 billion, compared to a pre-tax loss of $109 million a year earlier. The decline primarily reflected adverse volume and mix and higher incentives in North America.

Worldwide Automotive revenue for 2006 was $143.3 billion, compared to $153.5 billion a year ago. Total fourth-quarter Automotive revenue was $36 billion, a decrease from $40.7 billion a year ago.

Total company vehicle wholesales in 2006 were 6,597,000, a decrease from 6,767,000 in 2005. Fourth-quarter vehicle wholesales totaled 1,568,000, compared to 1,737,000 units a year ago.

Automotive cash at Dec. 31, 2006, totaled $33.9 billion of cash, net marketable securities, loaned securities and short-term Voluntary Employee Benefits Association (VEBA) assets.

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