Ford 2003 Annual Report Download - page 56

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54 FORD MOTOR COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULT OF OPERATIONS
The following chart summarizes Ford’s* credit ratings and the outlook assigned by the NRSROs since 2000:
DBRS** Fitch Moody’s S&P
Long- Short- Long- Short- Long- Short- Long- Short-
Date Term Term Trend Term Term Outlook Term Term Outlook Term Term Outlook
Apr. 2000 A (high) R-1 (low) Stable A+ F1 Stable A2 P-1 Stable A A-1 Stable
Aug. 2001 A R-1 (low) Stable A+ F1 Negative A2 P-1 Negative A A-1 Negative
Sep. 2001 A R-1 (low) Stable A- F2 Negative A2 P-1 Negative A A-1 Negative
Oct. 2001 A (low) R-1 (low) Stable A- F2 Negative A3 P-1 Negative BBB+ A-2 Stable
Jan. 2002 A (low) R-1 (low) Stable BBB+ F2 Negative Baa1 P-2 Negative BBB+ A-2 Negative
Oct. 2002 A (low) R-1 (low) Negative BBB+ F2 Negative Baa1 P-2 Negative BBB A-2 Negative
Apr. 2003 BBB (high) R-1 (low) Stable BBB+ F2 Negative Baa1 P-2 Negative BBB A-2 Negative
Nov. 2003 BBB (high) R-1 (low) Stable BBB+ F2 Negative Baa1 P-2 Negative BBB- A-3 Stable
––––––––––––
* Moody’s presently rates Ford Credit’s long-term debt at “A3,” and Hertz’s long-term debt at “Baa2.” DBRS has assigned Hertz’s long-term debt a negative
trend. All other Nov. 2003 ratings and outlooks shown apply equally to Ford, Ford Credit, and Hertz.
** NRSRO designation granted on February 27, 2003.
The ratings and trend assigned by DBRS have been in effect since April 2003 and were confirmed by DBRS in December 2003.
The ratings and outlooks assigned by Fitch and Moody’s have been in effect since January 2002 and were affirmed or confirmed
by each firm in November 2003. The ratings and outlook assigned by S&P have been in effect since November 2003, when S&P
lowered the long-term credit ratings on Ford, Ford Credit and Hertz to “BBB-” with a stable outlook from “BBB” with a negative
outlook, and lowered the short-term credit rating to “A-3” from “A-2.”
OUTLOOK
2004 FINANCIAL MILESTONES
We have set and communicated certain planning assumptions, operational metrics and financial milestones for 2004,
shown below:
Planning Assumptions
Industry Volume
U.S. 17.0 million units
Europe 16.9 million units
Industry Net Pricing
U.S. Down slightly
Europe Down slightly
Operational Metrics
Quality Improve in all regions
Market Share Flat or improve in all regions
Automotive Cost Performance a/ Improve by at least $500 million
Capital Spending $7 billion
Operating-Related Cash Flow b/ $1.2 billion positive
Milestone
Financial Results (in billions) c/
Pre-Tax Profits $ 3.5 – $ 3.8
Financial Services 2.6 – 2.7
Automotive 0.9 – 1.1
North America 1.5 – 1.7
South America (0.1) – 0
Europe (0.2) – (0.1)
Asia Pacific 0 – 0.1
P.A.G. 0.5 – 0.6
–––––––––––––
a/ At constant volume, mix and exchange; excluding special items.
b/ Excluding Pension/Long-Term VEBA contributions and tax refunds.
(See “Liquidity and Capital Resources — Gross Cash” for calculation of this non-GAAP measure).
c/ Excluding special items.
FIN33_72 3/21/04 5:42 PM Page 54