Ford 2004 Annual Report Download - page 27

Download and view the complete annual report

Please find page 27 of the 2004 Ford annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

2 5
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Certain prior-year amounts have been reclassified to conform to current period presentation.
FULL-YEAR 2004 RESULTS OF OPERATIONS
Our worldwide net income was $3.5 billion or $1.73 per share of Common and Class B stock in 2004, up $3.0 billion from a
profit of $495 million or $0.27 per share in 2003.
Results by business sector for 2004, 2003, and 2002 are shown below (in millions):
Included in Income/(loss) before income taxes are items we do not consider indicative of our ongoing operating activities
(“special items”). The following table details the 2004 special items by business unit (in millions):
See “Automotive Sector Results of Operations – 2004 Compared with 2003” below for discussion of special items.
2004 2003 2002
Income/(loss) before income taxes
Automotive sector $ (155) $ (1,908) $ (1,054)
Financial Services sector 5,008 3,247 2,118
Total Company 4,853 1,339 1,064
Provision for/(benefit from) income taxes 937 123 342
Minority interests in net income/(loss) of subsidiaries a/ 282 314 367
Income/(loss) from continuing operations 3,634 902 355
Income/(loss) from discontinued operations (147) (143) (333)
Cumulative effect of change in accounting principle b/ - (264) (1,002)
Net income/(loss) $ 3,487 $ 495 $ (980)
a/ Primarily related to Ford Europe’s consolidated less-than-100%-owned affiliates.
b/ Related to adoption of FIN 46 in 2003 and the adoption of Statement of Financial Accounting Standards No. 142 in 2002 (see Notes 16 and 9, respectively, of
the Notes to the Financial Statements).
Automotive sector
Ford North America:
Allowance for Visteon receivable $ (600)
Fuel-cell technology charges (182)
Ford Europe: improvement plans (49)
PAG: improvement plans (110)
Ford Asia Pacific and Africa: disposition of non-core businesses (81)
Other Automotive: disposition of non-core businesses 17
Total Automotive sector (1,005)
Financial Services sector
Property clean-up settlement 45
Total Company $ (960)