Ford 2003 Annual Report Download - page 57

2004 is the first year in which we have provided financial milestones for our individual Automotive business units. Our confidence
in achieving the Automotive profit target in total is greater than it is for any of the individual business units.
Based on the planning assumptions set forth above and achievement of the foregoing milestones, we expect 2004 earnings per
share from continuing operations excluding special items to range from $1.20 to $1.30 for the full-year. Our present estimate of
special items for 2004 is a pre-tax charge of up to $300 million, or about $0.11 per share on an after tax basis, consisting of the
balance of the Ford Europe restructuring charge and future expected losses with respect to dispositions of remaining non-core
businesses.
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;
• work stoppages at key 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;
• a market shift from truck sales in the U.S.;
• economic difficulties in any significant market;
• reduced availability of or higher prices for fuel;
• labor or other constraints on our ability to restructure our business;
• a change in our requirements under long-term supply arrangements under which we are obligated to purchase minimum
quantities or pay minimum amounts;
• a further credit rating downgrade;
• 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.
2003 ANNUAL REPORT 55
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULT OF OPERATIONS
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