Ford 2004 Annual Report Download - page 45

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Our earnings per share guidance and outlook for pre-tax profits excluding special items by business unit, sector and total
company remains unchanged from that disclosed in our Current Report on Form 8-K dated January 25, 2005.
Risk Factors
Statements included or incorporated by reference herein may constitute “forward looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties, and other factors that
could cause actual results to differ materially from those stated, including, without limitation:
• greater price competition resulting from currency fluctuations, industry overcapacity or other factors;
• a significant decline in industry sales, particularly in the U.S. or Europe, resulting from slowing economic growth, geo-
political events or other factors;
• lower-than-anticipated market acceptance of new or existing products;
• economic distress of suppliers that may require us to provide financial support or take other measures to ensure supplies of
materials;
• work stoppages at Ford or supplier facilities or other interruptions of supplies;
• the discovery of defects in vehicles resulting in delays in new model launches, recall campaigns or increased warranty costs;
• increased safety, emissions, fuel economy or other regulation resulting in higher costs and/or sales restrictions;
• unusual or significant litigation or governmental investigations arising out of alleged defects in our products or otherwise;
• worse-than-assumed economic and demographic experience for our postretirement benefit plans (e.g., investment returns,
interest rates, health care cost trends, benefit improvements);
• currency or commodity price fluctuations, including rising steel prices;
• changes in interest rates;
• a market shift from truck sales in the U.S.;
• economic difficulties in any significant market;
• higher prices for or reduced availability of fuel;
• labor or other constraints on our ability to restructure our business;
• a change in our requirements or obligations under long-term supply arrangements pursuant to which we are obligated to
purchase minimum quantities or a fixed percentage of output or pay minimum amounts;
• credit rating downgrades;
• inability to access debt or securitization markets around the world at competitive rates or in sufficient amounts;
• higher-than-expected credit losses;
• lower-than-anticipated residual values for leased vehicles;
• increased price competition in the rental car industry and/or a general decline in business or leisure travel due to terrorist
attacks, acts of war, epidemic disease or measures taken by governments in response thereto that negatively affect the travel
industry; and
• our inability to implement the Revitalization Plan.
CRITICAL ACCOUNTING ESTIMATES
We consider an accounting estimate to be critical if: 1) the accounting estimate requires us to make assumptions about matters
that were highly uncertain at the time the accounting estimate was made, and 2) changes in the estimate that are reasonably
likely to occur from period to period, or use of different estimates that we reasonably could have used in the current period,
would have a material impact on our financial condition or results of operations.
Management has discussed the development and selection of these critical accounting estimates with the Audit Committee of
our Board of Directors and the Audit Committee has reviewed the foregoing disclosure. In addition, there are other items within
our financial statements that require estimation, but are not deemed critical as defined above. Changes in estimates used in
these and other items could have a material impact on our financial statements.