Ford 2002 Annual Report Download - page 37

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33
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Management’s Discussion and Analysis of
Financial Condition and Results of Operations
The presentation below, consistent with our prior periodic reports, provides a geographical split of our Automotive operations,
reflecting the results of our various automotive affiliates grouped by legal domicile.
The results of our continuing operations exclude the results of discontinued and held-for-sale operations, which are described
in Note 3 of the Notes to our Financial Statements.
FOURTH QUARTER 2002 RESULTS OF OPERATIONS
Our worldwide losses were $130 million in the fourth quarter of 2002, or $0.07 per diluted share of Common and Class B Stock.
In the fourth quarter of 2001, losses were $5,068 million, including charges of $4,106 million primarily related to our Revitalization
Plan, or $2.81 per diluted share. Worldwide sales and revenues were $41.6 billion in the fourth quarter of 2002, up $869 million,
reflecting primarily improvement in net pricing and mix. Unit sales of cars and trucks were 1,791,000, down 21,000 units, due to
reduced U.S. and European industry volume, and reduced U.S. market share, partially offset by a fourth quarter 2002 increase in
U.S. dealer inventories (23,000 units) and the non-recurrence of a reduction in U.S. dealer inventories in the fourth quarter of
2001 (101,000 units).
Results of our operations by business sector for the fourth quarter of 2002 and 2001 are shown below (in millions):
Fourth Quarter
Net Income/(Loss)
2002
Over/(Under)
2002 2001 2001
Automotive sector $ (342) $ (4,667) $ 4,325
Financial Services sector 331 (364) 695
Income/(loss) from continuing operations (11) (5,031) 5,020
Income/(loss) from discontinued and held-for-sale operations* (15) (37) 22
Loss on disposal of discontinued and held-for-sale operations* (104) - (104)
Total Company net income/(loss) $ (130) $ (5,068) $ 4,938
* See Note 3 of the Notes to our Financial Statements for a discussion of these discontinued and held-for-sale operations.
AUTOMOTIVE SECTOR
Worldwide losses for our Automotive sector were $342 million in the fourth quarter of 2002 on sales of $34.7 billion.
Losses in the fourth quarter of 2001 were $4,667 million on sales of $33.6 billion.
Details of our geographic Automotive sector operations for the fourth quarter of 2002 and 2001 are shown below (in millions):
Fourth Quarter
Income/(Loss) from Continuing Operations
2002
Over/(Under)
2002 2001 2001
North American Automotive $ (49) $ (4,024) $ 3,975
Automotive Outside North America
Europe (363) 59 (422)
South America (11) (598) 587
Rest of World 81 (104) 185
Total Automotive Outside North America (293) (643) 350
Total Automotive sector $ (342) $ (4,667) $ 4,325