Ford Motor Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME
For the Years Ended December 31, 1998, 1997 and 1996
(in millions, except amounts per share)


1998
1997
1996
AUTOMOTIVE
Sales (Note 1)
    $ 119,083
    $122,935
    $ 118,023
Costs and expenses (Note 1 and 15):
Costs of sales
104,782
108,907
108,882
Selling, administrative and other expenses
7,616
7,082
6,625
    Total costs and expenses
112,398
115,989
115,507
Operating income
6,685
6,946
2,516
Interest income
1,331
1,116
841
Interest expense
829
788
695
    Net interest income
502
328
146
Equity in net loss of affiliated companies (Note 1)
(38)
(88)
(6)
Net expense from transactions with
    Financial Services (Note 1)
(191)
(104)
(85)
Income before income taxes - Automotive
6,958
7,082
2,571
FINANCIAL SERVICES
Revenues (Note 1)
25,333
30,692
28,968
Costs and expenses (Note 1):
Interest expense
8,036
9,712
9,704
Depreciation
8,589
7,645
6,875
Operating and other expenses
4,618
6,621
6,217
Provision for credit and insurance losses
1,798
3,230
2,564
Asset write-downs and dispositions (Note 15)
    -
    -
121
    Total costs and expenses
23,041
27,208
25,481
Net revenue from transactions with Automotive (Note 1)
191
104
85
Gain on spin-off of The Associates (Note 15)
15,955
-
-
Gain on sale of Common Stock of a subsidiary (Note 15)
    -
269
650
Income before income taxes - Financial Services
18,438
3,857
4,222
TOTAL COMPANY
Income before income taxes
25,396
10,939
6,793
Provision for income taxes (Note 6)
3,176
3,741
2,166
Income before minority interests
22,220
7,198
4,627
Minority interests in net income of subsidiaries
149
278
181
Net income
    $ 22,071
    $ 6,920
    $ 4,446
Income attributable to Common and Class B Stock
    after preferred stock dividends (Note 1)
    $ 21,964
    $ 6,866
    $ 4,381
Average number of shares of Common and Class B
    Stock outstanding (Note 1)
1,211
1,195
1,179
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK (Note 1)
Basic income
    $ 18.17
    $ 5.75
    $ 3.73
Diluted income
    $ 17.76
    $ 5.62
    $ 3.64
Cash dividends
    $ 1.72
    $ 1.645
    $ 1.47