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Ford Motor Company - Quality of Earnings Growth Analysis

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Ford Motor Company: Quality of p y y Earnings Growth Analysis (A)

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Ford Motor Company
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Earnings improvement over past 3 quarters have come from accounting adjustments Nov 11, 2003
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Common stock price: $13.14 52-week range: $6 to $13 (Still some 60% below its beginning 1999 price level)

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Incorporated in Delaware Incorporate in 1919 Acquired: Ford Motor Company, Michigan Company incorporated in 1903 Acquired to produce and sell automobiles designed and engineered by Henry Ford d In 2003: Worlds 2nd largest producer of cars and trucks combined f Along with its subsidiaries engaged in other business as well..,
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Financing Renting vehicles and equipment

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Ford Motor Company


Two principal …show more content…

Why?

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Discussion Question

Do you agree or disagree with Standard & Poor’s 2003 downgrades of Ford’s Long Term credit rating? Why? Ford s Long-Term

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Ford Motor Company and Subsidiaries, Sector Statement of Income for the Periods Ended Sept 30, 2003 and 2002 (in Millions Except Per Share Amounts)
Third Quarter Nine Months Third Quarter Nine Months 2003 2002 2003 2002 2003 2002 2003 2002 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) AUTOMOTIVE Sales Costs and expenses Cost of sales Selling, administrative and other expenses Total costs and expenses Operating income / (loss) Interest income Interest expense I t t Net interest income/ (expense) Equity in net income / (loss) of affiliated companies Income/ (loss) before income taxes Automotive FINANCIAL SERVICES Revenues Costs and expenses Interest expense Depreciation Operating and other expenses Provision for credit and insurance losses Total costs and expenses Income / (Loss) before income taxes- Financial Services 30,337 28,437 2,536 30,973 (636) 445 373 72 (45) (609) 32,396 30,568 2,467 33,035 (639) 378 340 38 (17) (618) 98,719 91,205 7,321 98,526 193 727 915 (188) 48 53 99,764 92,736 7,140 99,876 (112) 661 1,037 1 037 (376) (97) (585) 100 94 8 102 -2 1 1 0 0 -2 100 94 8 102 -2 1 1 0 0 -2 100 92 7 100 0 1 1 0 0 0 100 93 7 100 0 1 1 0 0 -1

6,551 1,552 2,095 1,342 1 342 530 5,519 1,032

6,942 1,868 2,530 1,180 1 180 792 6,370

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