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ACCOUNTING CHANGES AFFECT FORD RESULTS

 DEARBORN, Mich., Feb. 10 /PRNewswire/ -- Extraordinarily large one- time charges because of changes in U.S. accounting procedures caused a record loss for Ford Motor Company (NYSE: F) in 1992, in what was an otherwise encouraging year for both the company's overall automotive and financial services businesses, said Chairman Harold A. Poling.
 "This was one of the most unusual years in our business because of the economic uncertainties around the world and the one-time items that affected our financial results," Mr. Poling said. "Nonetheless, we were encouraged by the substantial improvement in the profitability of U.S. automotive operations and another record profit from the Financial Services Group."
 Ford Motor Company lost $7.4 billion in 1992, or $15.61 per share of common and Class B stock, primarily reflecting accounting changes mandated by the Financial Accounting Standards Board and applicable to all publicly traded U.S. corporations.
 In 1992, Ford adopted a major new accounting standard for postretirement benefits (retiree health care), Statement of Financial Accounting Standards (SFAS) No. 106, which resulted in a one-time charge to net income of $7.5 billion. The company also adopted a new accounting standard for income taxes, SFAS No. 109, which resulted in a credit of $657 million.
 The net of these two actions resulted in a one-time charge to net income for prior years of $6.9 billion.
 Excluding the one-time effects of accounting changes, Ford lost $502 million in 1992, or $1.46 per share of common and Class B stock, compared with a 1991 net loss of $2.3 billion, or $4.79 per share.
 Included in the net loss of $502 million were expenses of $455 million for the ongoing effects of the new retiree health care accounting method (SFAS 106) and $419 million for one-time charges associated with restructuring actions in Europe.
 Ford's worldwide sales and revenues were $100.1 billion, up $11.8 billion from 1991. Factory unit sales were 5,764,400, up 405,600 units, or 8 percent from 1991. Stockholders' equity was $14.8 billion, down $7.9 billion, primarily because of the one-time non- cash charge for retiree health care benefits accounting. Capital spending for the year was $5.8 billion. Cash and marketable securities of the company's automotive operations were $9 billion on Dec. 31, 1992. Automotive debt was $8.3 billion.
 In the fourth quarter of 1992, Ford lost $840 million, including $105 million for the ongoing effect of SFAS 106 and the one-time charge of $419 million for restructuring European operations. Fourth-quarter losses in 1991 were $476 million.
 Overall Automotive Operations Improve over 1991
 Ford's worldwide automotive operations, excluding the one-time effects of accounting changes, lost $1.5 billion in 1992, compared with a loss of $3.2 billion a year earlier. Higher U.S. vehicle production accounted for most of the improvement. U.S. automotive operations, excluding the one-time effects of accounting changes, lost $405 million, an improvement of $1.8 billion over 1991. Outside the U.S., automotive operations lost $1.1 billion in 1992, excluding the one-time effects of accounting changes, compared with a loss of $970 million a year earlier.
 "In addition to the strong financial improvement in U.S. automotive operations, Ford also gained U.S. market share in 1992," Mr. Poling said. "In fact, Ford was the only major manufacturer, domestic or foreign, to improve both its car and truck share in 1992. We placed five of our vehicle lines in the top 10 best-selling vehicles in the United States, including the number one car and number one truck; and we increased our share of the total U.S. vehicle market to 24.7 percent, up 1.5 percentage points from 1991."
 Ford's share of the car market rose to 21.8 percent, up 1.7 points from 1991. Ford's share of the truck market was 29.7 percent, up 0.8 of a point from 1991.
 "In 1992, Ford Division maintained its lead in total truck sales for the seventh year running," Mr. Poling said. "Ford Division also recaptured car sales leadership. And there has been widespread customer acceptance of our recently launched products, including the Lincoln Mark VIII, which was publicly introduced on Dec. 26."
 Mr. Poling noted that the worsening recession in Europe contributed to poor financial results in the second half of 1992.
 "In Europe, we are responding to economic and competitive challenges, as evidenced by our recent restructuring of operations," Mr. Poling said. "Our European product plans remain intact. We are introducing an all-new mid-size car, the Ford Mondeo, to the European market in March. We expect to build on these actions to achieve improved results in 1993."
 Ford Financial Services Group Posts All-Time Record Earnings
 Led by record results at Ford Credit and The Associates, the Financial Services Group earned higher profits for the third year in a row, with earnings topping the $1 billion mark for the first time. Excluding the one-time accounting changes, the Financial Services Group earned $1.03 billion in 1992, up $105 million or 11 percent from 1991. The improvement reflects reduced credit losses and improved net interest margins.
 "The Financial Services Group, our other core business, again had an outstanding year," Mr. Poling said. "For the second straight year, Ford Credit had record earnings, and The Associates had its 16th consecutive year of record profits. Our financial services businesses continue to be a stable and high quality source of earnings."
 Future Remains Challenging
 Given substantially improved year-over-year operating results, Ford management remains cautiously optimistic about 1993. Ford expects U.S. industry sales will increase to about 13.5 million cars and trucks in 1993, up from 13.1 million last year. In Europe, Ford expects industry sales to drop to about 13.7 million cars and trucks, compared with 14.9 million in 1992.
 "Many of the problems that affected Ford in 1992 are continuing into 1993 -- weak economies, intense competition and excess industry capacity," Mr. Poling said. "However, the company's cost-reduction efforts and recent product introductions, coupled with gradual economic recovery in the U.S., provide the basis for continued improvement in operating results in 1993."
 Ford Motor Company and Subsidiaries
 HIGHLIGHTS
 Fourth Quarter Full Year
 1992 1991 1992 1991
 Worldwide factory
 sales of cars,
 trucks, and tractors
 (in thousands)
 - United States 872.9 699.9 3,361.3 2,868.6
 - Outside United
 States 529.4 596.0 2,403.1 2,490.2
 Total 1,402.3 1,295.9 5,764.4 5,358.8
 Sales and revenues
 (in millions)
 - Automotive $ 21,498.8 $ 17,897.3 $ 84,407.2 $ 72,050.9
 - Financial
 Services 3,908.0 4,084.6 15,725.1 16,235.4
 Total $ 25,406.8 $ 21,981.9 $100,132.3 $ 88,286.3
 (Loss)/Income before
 cumulative effects
 of changes in
 accounting principles
 (in millions)
 - Automotive $ (1,036.9) $ (712.3) $ (1,533.6) $ (3,185.5)
 - Financial
 Services 196.6 236.6 1,031.8 927.5
 Total $ (840.3) $ (475.7) $ (501.8) $ (2,258.0)
 Net (loss)/income
 (in millions)
 - Automotive $ (1,036.9) $ (712.3) $ (8,627.9) $ (3,185.5)
 - Financial
 Services 196.6 236.6 1,242.9 927.5
 Total $ (840.3) $ (475.7) $ (7,385.0) $ (2,258.0)
 Capital expenditures
 (in millions)
 - Automotive $ 1,746.5 $ 1,544.5 $ 5,696.6 $ 5,723.2
 - Financial
 Services 41.2 37.2 92.9 124.1
 Total $ 1,787.7 $ 1,581.7 $ 5,789.5 $ 5,847.3
 Stockholders' equity,
 December 31
 (in millions) $ 14,752.9a/$ 22,690.3 $ 14,752.9a/$ 22,690.3
 Automotive cash,
 cash equivalents,
 and marketable
 securities,
 December 31
 (in millions) $ 9,034.9 $ 9,752.5 $ 9,034.9 $ 9,752.5
 Automotive debt,
 December 31
 (in millions) $ 8,316.6 $ 9,118.3 $ 8,316.6 $ 9,118.3
 Shares of Common
 and Class B Stock
 (in millions)
 - average number
 outstanding 488.4 481.6 486.5 475.8
 - number outstanding
 at December 31 489.1 483.2 489.1 483.2
 AMOUNTS PER SHARE OF
 COMMON AND CLASS B
 STOCK AFTER PREFERRED
 STOCK DIVIDENDS
 (Loss)/Income before
 cumulative effects
 of changes in
 accounting principles
 - Automotive $ (2.25) $ (1.52) $ (3.58) $ (6.74)
 - Financial
 Services 0.40 0.49 2.12 1.95
 Total $ (1.85) $ (1.03) $ (1.46) $ (4.79)
 (Loss)/Income
 - Automotive $ (2.25) $ (1.52) $ (18.16) $ (6.74)
 - Financial
 Services 0.40 0.49 2.55 1.95
 Total $ (1.85) $ (1.03) $ (15.61) $ (4.79)
 Cash dividends per
 share of Common
 and Class B Stock $ 0.40 $ 0.40 $ 1.60 $ 1.95
 - - - - -
 a/ The cumulative effects of changes in accounting principles
 reduced equity by $6,883.2 million in 1992.
 -0- 2/10/93 R
 /CONTACT: Judith A. Muhlberg or John W. Spelich of Ford, 313-322-9600/
 (F)


CO: Ford Motor Company ST: Michigan IN: AUT SU: ERN

GK -- DE001R -- 5129 02/10/93 11:55 EST
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