Ford Motor Company (F) Q4 2002 earnings summary

Executive summary

• FY 2002 net loss narrowed to $980 million from $5.453 billion in 2001; continuing-operations income was $284 million.

• Sales and revenues rose 1.1% to $162.6 billion; worldwide vehicle sales were 6.973 million, down 35,000 units YoY.

• Positive automotive cash flow and $25.3 billion in automotive gross cash supported the revitalization effort.

Financial highlights

• Q4 2002 net loss was $130 million, or $0.07 per diluted share, versus a $5.068 billion loss in Q4 2001; revenue increased $869 million to $41.6 billion.

• FY automotive sales were $134.4 billion; operating loss was $531 million, versus $7.395 billion in 2001.

• Consolidated cash flows from operating activities were $18.633 billion in 2002, compared with $21.891 billion in 2001.

• Adjusted for unusual items, 2002 automotive pre-tax earnings exceeded the breakeven milestone; non-product costs fell $2 billion.

Outlook and guidance

• FY 2003 diluted EPS forecast at about $0.70, including first-quarter EPS of $0.20; Automotive expected to break even and operating cash flow targeted at breakeven.

• 2003 automotive cost performance targeted to improve by at least $500 million at constant volume and mix; capital spending planned at $8 billion.

• Mid-decade target remained $7 billion in annual pre-tax profit; management expected 2003 profits ahead of the original revitalization plan.