Ford 2002 Annual Report Download - page 39

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35
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FULL-YEAR 2002 RESULTS OF OPERATIONS
Our worldwide sales and revenues were $162.6 billion in 2002, up $1.8 billion from 2001. The increase is explained by higher
Automotive revenues, reflecting higher unit sales volume and improved vehicle mix in North America, partially offset by lower
financial services revenues resulting from increased sales of receivables. We sold 6,973,000 cars and trucks in 2002, down
35,000 units from 2001.
Results of our operations by business sector for 2002, 2001, and 2000 are shown below (in millions):
Automotive Sector Financial Services Sector Total
2002 2001 2000 2002 2001 2000 2002 2001 2000
Income/(loss) from continuing
operations $ (987) $ (6,155) $ 3,664 $ 1,271 $ 806 $ 1,792 $ 284 $ (5,349) $ 5,456
Income/(loss) from discontinued
and held-for-sale operations (93) (112) 269 30 8 (6) (63) (104) 263
Loss on disposal of discontinued
and held-for-sale operations (168) - (2,252) (31) --(199) - (2,252)
Cumulative effect of change in
accounting principle* (708) --(294) --(1,002) --
Total Company net
income/(loss) $ (1,956) $ (6,267) $ 1,681 $ 976 $ 814 $ 1,786 $ (980) $ (5,453) $ 3,467
* See Note 7 of the Notes to our Financial Statements for a discussion of impairment of goodwill pursuant to the adoption of SFAS No. 142, to which this relates.
The following unusual items were included in our 2002, 2001, and 2000 income from continuing operations (in millions):
Automotive Sector
Rest Total Financial
North South of Auto Services
America Europe America World Sector Sector
2002
Derivative instruments (SFAS No. 133)
ongoing effects $ (57) $ (57) $ (141)
Interest income on U.S. federal tax refund 142 142
Loss on sale of Kwik-Fit and other businesses (15) $ (510) (525)
European end-of-life accrual (46) (46)
Europe and PAG restructuring (223) (223)
Total 2002 unusual items $ 70 $ (779) $ - $ - $ (709) $ (141)
2001
Derivative instruments (SFAS No. 133)
transition adjustment and ongoing effects $ (95) $ (95) $ (157)
Mazda restructuring actions
in the second quarter $ (114) (114)
Write-down of E-commerce and Automotive-
related ventures in the third quarter (199) (199)
Revitalization Plan and other fourth
quarter charges* (3,149) $ (552) (201) (3,902) (204)
Total 2001 unusual items $ (3,443) $ - $ (552) $ (315) $ (4,310) $ (361)
2000
Asset impairment and restructuring costs
for Ford-brand operations in Europe
in the second quarter $ (1,019) $ (1,019)
Inventory-related profit reduction for
Land Rover in the third quarter $ (13) (76) $ (17) (106)
Write-down of assets associated with the
Nemak joint venture in the fourth quarter (133) (133)
Total 2000 unusual items $ (146) $ (1,095) $ - $ (17) $ (1,258) $ -
* Included pre-tax charges for fixed-asset impairments in our North American and South American Automotive operations ($3.1 billion and $700 million,
respectively), precious metals impairment ($1.0 billion), employee separation charges ($600 million) and other charges ($300 million)