Company Website:
http://corporate.ford.com/
DEARBORN, Mich. -- (Business Wire)
Ford Motor Company (NYSE: F):
-
Third quarter pre-tax profit of $1.2 billion, a decrease of $1.4
billion compared with a year ago; after-tax earnings per share of 24
cents, excluding special items; 21st consecutive profitable
quarter
-
Net income of $835 million, or 21 cents per share, a decrease of $437
million compared with a year ago; net income includes pre-tax special
item charges of $160 million, largely to support European
transformation plan
-
Wholesale volume and company revenue declined year-over-year by 3
percent and 2 percent, respectively; market share higher in Europe and
record third quarter market share in Asia Pacific; record market share
in China
-
North America and Asia Pacific profitable
-
Strong results at Ford Credit — better than a year ago
-
Automotive operating-related cash flow negative $700 million;
Automotive gross cash of $22.8 billion at end of third quarter
exceeded debt by $7.9 billion
-
Unprecedented cadence of new products continues — all launches on
track, including the all-new F-150
-
Guidance unchanged from the company’s Sept. 29 Investor Day, including
2014 pre-tax profit guidance of about $6 billion, excluding special
items, and strong growth and financial performance in 2015
|
|
|
| |
|
| |
Financial Results Summary* | | | | Third Quarter | | | First Nine Months |
| | | | 2013 |
|
| 2014 |
|
| B/(W) 2013 | | | 2013 |
|
| 2014 |
|
| B/(W) 2013 |
Wholesales (000)
| | | |
1,545
| | |
1,493
| | |
(52
|
)
| | |
4,720
| | |
4,743
| | |
23
| |
Revenue (Bils.)
| | | |
$
|
|
|
|
|
35.8
| | |
$
|
|
|
|
|
34.9
| | |
$
|
(0.9
|
)
| | |
$
|
|
|
|
|
109.3
| | |
$
|
|
|
|
|
108.2
| | |
$
|
(1.1
|
)
|
Operating Results | | | | | | | | | | | | | | | | | | | | | |
Pre-tax results (Mils.)**
| | | |
$
| | | | |
2,589
| | |
$
| | | | |
1,181
| | |
$
|
(1,408
|
)
| | |
$
| | | | |
7,290
| | |
$
| | | | |
5,161
| | |
$
|
(2,129
|
)
|
After-tax results (Mils.)**
| | | |
1,821
| | |
936
| | |
(885
|
)
| | |
5,296
| | |
3,585
| | |
(1,711
|
)
|
Earnings per share**
| | | |
0.45
| | |
0.24
| | |
(0.21
|
)
| | |
1.31
| | |
0.89
| | |
(0.42
|
)
|
Special items pre-tax (Mils.) | | | |
$
| | | | |
(498
|
)
| |
$
| | | | |
(160
|
)
| |
$
|
338
| | | |
$
| | | | |
(1,257
|
)
| |
$
| | | | |
(763
|
)
| |
$
|
494
| |
Net income attributable to Ford | | | | | | | | | | | | | | | | | | | | | |
After-tax results (Mils.)
| | | |
$
| | | | |
1,272
| | |
$
| | | | |
835
| | |
$
|
(437
|
)
| | |
$
| | | | |
4,116
| | |
$
| | | | |
3,135
| | |
$
|
(981
|
)
|
Earnings per share
| | | |
0.31
| | |
0.21
| | |
(0.10
|
)
| | |
1.02
| | |
0.78
| | |
(0.24
|
)
|
Automotive | | | | | | | | | | | | | | | | | | | | | |
Operating-related cash flow (Bils.)
| | | |
$
| | | | |
1.6
| | |
$
| | | | |
(0.7
|
)
| |
$
|
(2.3
|
)
| | |
$
| | | | |
5.6
| | |
$
| | | | |
3.1
| | |
$
|
(2.5
|
)
|
| | | | | | | | | | | | | | | | | | | | |
|
Gross cash (Bils.)
| | | |
$
| | | | |
26.1
| | |
$
| | | | |
22.8
| | |
$
|
(3.3
|
)
| | |
$
| | | | |
26.1
| | |
$
| | | | |
22.8
| | |
$
|
(3.3
|
)
|
Debt (Bils.)
| | | |
|
|
|
|
|
(15.8
|
)
| |
(14.9
|
)
| |
0.9
|
| | |
(15.8
|
)
| |
(14.9
|
)
| |
0.9
|
|
Net cash (Bils.)
| | | |
$
|
|
|
|
|
10.3
|
| |
$
|
|
|
|
|
7.9
|
| |
$
|
(2.4
|
)
| | |
$
|
|
|
|
|
10.3
|
| |
$
|
|
|
|
|
7.9
|
| |
$
|
(2.4
|
)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
*See end note on page 9. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
** See end note on page 9. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ford Motor Company (NYSE: F) today reported a 2014 third quarter pre-tax
profit of $1.2 billion, its 21st consecutive profitable
quarter.
The company’s pre-tax profit, excluding special items, was $1.4 billion
lower than a year ago. This is more than explained by three factors —
lower volume, higher warranty costs and adverse balance sheet exchange
effects.
After-tax earnings per share were 24 cents, excluding special items, 21
cents lower than a year ago.
Net income for the quarter was $835 million, or 21 cents per share, a
decrease of $437 million, or 10 cents, from a year ago. Net income
included pre-tax special item charges of $160 million for
separation-related actions, primarily to support Ford’s European
transformation plan.
Third quarter wholesale volume and company revenue declined
year-over-year by 3 percent and 2 percent, respectively. Market share
was higher in Europe, and the company reported record third quarter
market share in Asia Pacific with record market share in China for any
quarter.
North America and Asia Pacific were profitable, but pre-tax results were
lower than a year ago for all of Ford’s Automotive business units except
Middle East & Africa. Ford Credit delivered strong results that were
better than a year ago.
Ford’s full-year outlook for company pre-tax profit is unchanged at
about $6 billion, excluding special items, as it continues its
aggressive implementation of its One Ford plan.
“During the third quarter, we continued to introduce an unprecedented
number of new vehicles and invest heavily in the new products and
technologies that will deliver strong profitable growth beginning next
year,” said Mark Fields, president and CEO. “We also addressed business
challenges head-on using our proven One Ford plan. Everyone at Ford
remains focused on accelerating our pace of progress, while delivering
product excellence and innovation in every part of our business.”
Ford’s Automotive operating-related cash flow was negative $700 million
in the third quarter. This is more than explained by unfavorable changes
in working capital, including the effects of the five weeks of downtime
in the quarter at the Dearborn Truck Plant as the company transitions to
the all-new F-150, as well as supplier parts shortages. In the fourth
quarter, working capital changes are expected to be positive. The
company ended the third quarter with Automotive gross cash of
$22.8 billion, exceeding debt by $7.9 billion, with Automotive liquidity
of $33.6 billion.
In the third quarter, Ford declared a dividend of $0.125 per share on
the company’s outstanding Class B and common stock and paid about $500
million in dividends. Ford also completed the previously announced share
repurchase program.
Ford’s third quarter operating effective tax rate was 31 percent. The
company continues to expect its full-year operating effective tax rate
to be about 35 percent.
AUTOMOTIVE SECTOR
|
|
|
| Third Quarter |
|
|
| First Nine Months |
| | | | 2013 |
| 2014 |
| B/(W) 2013 | | | | 2013 |
| 2014 |
| B/(W) 2013 |
Wholesales (000)
| | | |
1,545
|
| | |
1,493
|
| | |
(52
|
)
|
| | | | |
4,720
|
| | |
4,743
|
| | |
23
| |
| |
Revenue (Bils.)
| | | |
$
|
|
|
|
33.9
| | | |
$
|
|
|
|
32.8
| | | |
$
|
(1.1
|
)
| | | | | |
$
|
|
|
|
103.8
| | | |
$
|
|
|
|
102.0
| | | |
$
|
(1.8
|
)
| | |
Operating Margin (Pct.)
| | | |
7.0
| |
%
| |
2.5
| |
%
| |
(4.5
|
)
| |
pts.
| | | |
6.2
| |
%
| |
4.2
| |
%
| |
(2.0
|
)
| |
pts.
|
Pre-tax results (Mils.)
| | | |
$
| | | |
2,226
| | | |
$
| | | |
686
| | | |
$
|
(1,540
|
)
| | | | | |
$
| | | |
5,973
| | | |
$
| | | |
3,775
| | | |
$
|
(2,198
|
)
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Automotive third quarter wholesale volume and revenue decreased by
3 percent from a year ago. The lower volume is more than explained by an
unfavorable change in dealer stocks related to product launch effects
and supplier parts shortages, as well as declining industry volume in
South America. Higher industry volumes in other regions was a partial
offset.
Operating margin was 2.5 percent, a decrease of 4.5 percentage points
from a year ago. Automotive pre-tax profit of $686 million was $1.5
billion lower than a year ago, mainly explained by higher warranty
costs, including recalls, mainly in North America, and lower volumes in
North and South America, as well as adverse balance sheet exchange
effects, mainly in South America.
“The continued implementation of our One Ford plan enabled us to reach
our 21st consecutive quarter of profitability, and we are
encouraged in particular by our record market share in China,” said Bob
Shanks, executive vice president and chief financial officer. “Our focus
remains on profitably growing the business, and our investments this
year are laying the groundwork for our future success.”
North America
|
|
|
| Third Quarter |
|
|
| First Nine Months |
| | | | 2013 |
| 2014 |
| B/(W) 2013 | | | | 2013 |
| 2014 |
| B/(W) 2013 |
Wholesales (000)
| | | |
725
|
| | |
665
|
| | |
(60
|
)
|
| | | | |
2,262
|
| | |
2,142
|
| | |
(120
|
)
|
| |
Revenue (Bils.)
| | | |
$
|
|
|
|
21.2
| | | |
$
|
|
|
|
19.9
| | | |
$
|
(1.3
|
)
| | | | | |
$
|
|
|
|
64.5
| | | |
$
|
|
|
|
61.5
| | | |
$
|
(3.0
|
)
| | |
Operating Margin (Pct.)
| | | |
10.9
| |
%
| |
7.1
| |
%
| |
(3.8
|
)
| |
pts.
| | | |
10.9
| |
%
| |
8.7
| |
%
| |
(2.2
|
)
| |
pts.
|
Pre-tax results (Mils.)
| | | |
$
| | | |
2,296
| | | |
$
| | | |
1,410
| | | |
$
|
(886
|
)
| | | | | |
$
| | | |
7,009
| | | |
$
| | | |
5,350
| | | |
$
|
(1,659
|
)
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
North America continues to benefit from robust industry sales, Ford’s
strong product lineup, continued discipline in matching production to
demand and a lean cost structure.
North America’s pre-tax profit was adversely affected in the quarter by
higher warranty costs and lower volume.
Wholesale volume and revenue declined 8 percent and 6 percent,
respectively. The volume decrease is explained primarily by product
launch effects, including five weeks of downtime in the quarter at the
Dearborn Truck Plant for the F-150 launch, and supplier parts shortages.
North America’s decline in revenue is more than explained by lower
wholesale volume.
Third quarter U.S. market share was 14.1 percent, down 0.8 percentage
points from a year ago. The decline primarily reflects a planned
reduction in daily rental sales and lower F-150 share as Ford prepares
for the new vehicle by continuing to balance share, transaction prices
and stocks.
For the full year, Ford continues to expect North America’s pre-tax
profit to be lower than 2013 and operating margin to be at the low end
of the 8 percent to 9 percent range.
South America
|
|
|
| Third Quarter |
|
|
|
| First Nine Months |
| | | | 2013 |
| 2014 |
| B/(W) 2013 | | | | | 2013 |
| 2014 |
| B/(W) 2013 |
Wholesales (000)
| | | |
143
|
| | |
113
| | | |
(30
|
)
|
| | | | | |
403
|
| | |
331
| | | |
(72
|
)
|
| |
Revenue (Bils.)
| | | |
$
|
|
|
|
2.8
| | | |
$
|
|
|
|
2.3
| | | |
$
|
(0.5
|
)
| | | | | | |
$
|
|
|
|
8.1
| | | |
$
|
|
|
|
6.3
| | | |
$
|
(1.8
|
)
| | |
Operating Margin (Pct.)
| | | |
5.7
| |
%
| |
(7.3
|
)
|
%
| |
(13.0
|
)
| |
pts.
| | | | |
1.1
| |
%
| |
(15.4
|
)
|
%
| |
(16.5
|
)
| |
pts.
|
Pre-tax results (Mils.)
| | | |
$
| | | |
160
| | | |
$
| | | |
(170
|
)
| | |
$
|
(330
|
)
| | | | | | |
$
| | | |
93
| | | |
$
| | | |
(975
|
)
| | |
$
|
(1,068
|
)
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
South America continues to expand its product lineup and has replaced
legacy products with global One Ford offerings. Ford is working to
manage the effects of slowing GDP growth, declining industry volumes in
its larger markets, weaker currencies and high inflation, as well as
policy uncertainty in some countries.
South America reported a pre-tax loss of $170 million in the third
quarter, a decline of $330 million from the prior year. The decline is
primarily explained by lower volume and adverse balance sheet exchange
effects.
In the third quarter, wholesale volume and revenue decreased by 21
percent and 17 percent, respectively. The lower volume is primarily
explained by a 700,000-unit decline from last year’s seasonally adjusted
annual rate (SAAR) of 5.7 million units. This reflects the impact of the
weakening economy in Brazil, import restrictions in Argentina and lower
production in Venezuela resulting from the limited availability of U.S.
dollars. Also contributing is a non-repeat of last year’s stock build.
The revenue decline is more than explained by lower volume and weaker
currencies, partially offset by higher pricing.
South America market share, at 8.8 percent, was down 0.4 percentage
points from a year ago, more than explained by the phase-out of the
Fiesta Classic.
For the full year, Ford continues to expect South America to incur a
loss of about $1 billion.
Europe
|
|
|
| Third Quarter |
|
|
| First Nine Months |
| | | | 2013 |
| 2014 |
| B/(W) 2013 | | | | 2013 |
| 2014 |
| B/(W) 2013 |
Wholesales (000)
| | | |
303
| |
| | |
321
| |
| | |
18
| |
| | | | |
1,010
| |
| | |
1,064
| |
| | |
54
| |
| |
Revenue (Bils.)
| | | |
$
|
|
|
|
6.4
| | | | |
$
|
|
|
|
6.9
| | | | |
$
|
|
0.5
| | | | | | |
$
|
|
|
|
20.3
| | | | |
$
|
|
|
|
22.7
| | | | |
$
|
|
2.4
| | | |
Operating Margin (Pct.)
| | | |
(2.8
|
)
| |
%
| |
(6.4
|
)
| |
%
| |
(3.6
|
)
| |
pts.
| | | |
(4.5
|
)
| |
%
| |
(2.7
|
)
| |
%
| |
1.8
| |
pts.
|
Pre-tax results (Mils.)
| | | |
$
| | | |
(182
|
)
| | | |
$
| | | |
(439
|
)
| | | |
$
| |
(257
|
)
| | | | | |
$
| | | |
(913
|
)
| | | |
$
| | | |
(619
|
)
| | | |
$
| |
294
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ford continues to implement its Europe transformation plan focused on
product, brand and cost.
Europe reported a third quarter pre-tax loss of $439 million, a $257
million decline from a year ago. The decline is more than explained by
Russia, balance sheet exchange effects and other factors including lower
component pricing and non-recurrence of prior year gains.
In the third quarter, wholesale volume and revenue improved from a year
ago, up 6 percent and 7 percent, respectively. The higher volume
reflects a 700,000-unit increase in the Europe 20 SAAR, to 14.5 million
units, higher market share and lower dealer stock reductions than a year
ago. The increase was offset partially by lower volumes in Russia and
Turkey. Europe’s higher revenue reflects higher volume in the Europe 20
markets.
Europe 20 market share, at 8.4 percent, was up 0.4 percentage points
from a year ago. This was driven by a 0.5 percentage point improvement
in Ford’s retail passenger share of the five major European markets, to
8.8 percent, including the effect of Ford’s expanded SUV lineup. It also
was driven by a 2 percentage point improvement in the company’s
commercial vehicle share, to 13 percent, reflecting the success of
Ford’s full line of new Transit vehicles and continued strong
performance of the Ranger compact pickup.
For the full year, Ford continues to expect Europe to incur a loss of
about $1.2 billion, an improvement compared with 2013.
Middle East & Africa
|
|
|
| Third Quarter |
|
|
| First Nine Months |
| | | | 2013 |
| 2014 |
| B/(W) 2013 | | | | 2013 |
| 2014 |
| B/(W) 2013 |
Wholesales (000)
| | | |
44
| |
| | |
48
| |
| | |
4
|
| | | | |
150
|
| | |
148
|
| | |
(2
|
)
|
| |
Revenue (Bils.)
| | | |
$
|
|
|
|
1.0
| | | | |
$
|
|
|
|
1.1
| | | | |
$
|
|
0.1
| | | | | |
$
|
|
|
|
3.5
| | | |
$
|
|
|
|
3.4
| | | |
$
|
|
(0.1
|
)
| | |
Operating Margin (Pct.)
| | | |
(2.4
|
)
| |
%
| |
(1.4
|
)
| |
%
| |
1.0
| |
pts.
| | | |
1.0
| |
%
| |
1.8
| |
%
| |
0.8
| |
pts.
|
Pre-tax results (Mils.)
| | | |
$
| | | |
(25
|
)
| | | |
$
| | | |
(15
|
)
| | | |
$
| |
10
| | | | | |
$
| | | |
35
| | | |
$
| | | |
62
| | | |
$
| |
27
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
The Middle East & Africa business unit was created to facilitate better
customer service and further expand Ford’s presence in this fast-growing
region.
The business unit reported a loss of $15 million for the third quarter,
a $10 million improvement from a year ago.
In the third quarter, wholesale volume and revenue improved from a year
ago by 9 percent and 5 percent, respectively.
Ford’s full-year guidance for Middle East & Africa remains unchanged,
with the region expected to be about breakeven.
Asia Pacific
|
|
|
| Third Quarter |
|
|
| First Nine Months |
| | | | 2013 |
| 2014 |
| B/(W) 2013 | | | | 2013 |
| 2014 |
| B/(W) 2013 |
Wholesales (000)
| | | |
330
|
| | |
346
|
| | |
16
| |
| | | | |
895
|
| | |
1,058
|
| | |
163
|
| |
Revenue (Bils.)
| | | |
$
|
|
|
|
2.5
| | | |
$
|
|
|
|
2.6
| | | |
$
|
|
0.1
| | | | | | |
$
|
|
|
|
7.4
| | | |
$
|
|
|
|
8.1
| | | |
$
|
|
0.7
| | |
Operating Margin (Pct.)
| | | |
4.6
| |
%
| |
1.7
| |
%
| |
(2.9
|
)
| |
pts.
| | | |
3.0
| |
%
| |
6.1
| |
%
| |
3.1
| |
pts.
|
Pre-tax results (Mils.)
| | | |
$
| | | |
116
| | | |
$
| | | |
44
| | | |
$
| |
(72
|
)
| | | | | |
$
| | | |
218
| | | |
$
| | | |
494
| | | |
$
| |
276
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ford continues to invest for growth in Asia Pacific through both new and
expanded plants, new products and the introduction of Lincoln in China.
Asia Pacific reported a third quarter pre-tax profit of $44 million, a
decrease of $72 million from a year ago. The decrease is more than
explained by higher structural costs and unfavorable exchange, partially
offset by favorable market factors. The higher structural costs reflect
Ford’s continued investment in products and growth, including five new
plants that will come on line over the next nine months, as well as the
launch of Lincoln.
In the third quarter, wholesale volume was up 5 percent from a year ago,
and net revenue, which excludes the company’s China joint ventures, grew
3 percent. Wholesale volume in China increased 10 percent from a year
ago. The higher volume in Asia Pacific is more than explained by higher
market share and industry volume. Ford estimates the third quarter SAAR
for the region at 38.9 million units, up 1.8 million units from a year
ago, explained primarily by China. Higher revenue is more than explained
by favorable mix.
Third quarter operating margin for Asia Pacific was 1.7 percent, 2.9
percentage points lower than a year ago.
Ford’s market share, at 3.6 percent, was a record for the third quarter
and was 0.2 percentage points higher than a year ago. The improvement
was driven by China, where Ford’s market share improved 0.4 percentage
points to a record 4.7 percent, reflecting continued strong sales across
the company’s vehicle lineup.
For the full year, Ford continues to expect Asia Pacific to earn a
pre-tax profit of about $700 million, which is higher than a year ago.
Other Automotive
The third quarter loss of $144 million in Other Automotive primarily
reflects net interest expense.
For the full year, Ford continues to expect net interest expense to be
about $700 million.
PRODUCTION VOLUMES*
|
|
|
| 2014 |
| | | | Third Quarter Actual |
|
| Fourth Quarter Forecast |
| | | | Units |
| O/(U) 2013 | | | Units |
| O/(U) 2013 |
| | | |
(000)
| |
(000)
| | |
(000)
| |
(000)
|
North America
| | | |
|
|
|
|
|
|
695
| |
(56
|
)
| | |
|
|
|
|
|
|
715
| | |
(41
|
)
|
South America
| | | | | | | | | |
97
| |
(28
|
)
| | | | | | | | |
108
| | |
4
| |
Europe
| | | | | | | | | |
326
| |
3
| | | | | | | | | |
320
| | |
(13
|
)
|
Middle East & Africa
| | | | | | | | | |
20
| |
7
| | | | | | | | | |
19
| | |
2
| |
Asia Pacific
| | | |
352
| |
17
|
| | |
375
|
| |
13
|
|
Total
| | | |
1,490
| |
(57
|
)
| | |
1,537
|
| |
(35
|
)
|
|
*Includes Ford brand and JMC brand vehicles produced by
our unconsolidated affiliates. |
|
In the third quarter, total company production was about 1.5 million
units, 57,000 units lower than a year ago. This was 45,000 units lower
than Ford’s previous guidance.
The company expects fourth quarter production to be about 1.5 million
units, down 35,000 units from a year ago because of planned shutdowns,
including three weeks of downtime at the Dearborn Truck Plant for the
new F-150. Compared with the third quarter, fourth quarter production is
up 47,000 units. The increase is largely driven by the launch of new and
freshened products, including Transit and Mustang.
FINANCIAL SERVICES SECTOR
|
|
|
| Third Quarter |
|
|
| First Nine Months |
| | | | 2013 |
| 2014 |
| B/(W) 2013 | | | | 2013 |
| 2014 |
| B/(W) 2013 |
Revenue (Bils.)
| | | |
$
|
|
|
|
|
1.9
| | |
$
|
|
|
|
|
2.1
| | |
$
|
0.2
| | | |
$
|
|
|
|
5.5
| | |
$
|
|
|
|
6.2
| | |
$
|
0.7
|
Ford Credit pre-tax results (Mils.)
| | | |
$
| | | | |
427
| | |
$
| | | | |
498
| | |
$
|
71
| | | |
$
| | | |
1,388
| | |
$
| | | |
1,431
| | |
$
|
43
|
Other Financial Services pre-tax results (Mils.)
| | | |
(64
|
)
| |
(3
|
)
| |
61
| | | |
(71
|
)
| |
(45
|
)
| |
26
|
Financial Services pre-tax results (Mils.)
| | | |
$
|
|
|
|
|
363
|
| |
$
|
|
|
|
|
495
|
| |
$
|
132
| | | |
$
|
|
|
|
1,317
|
| |
$
|
|
|
|
1,386
|
| |
$
|
69
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ford Motor Credit Company
As an integral part of Ford’s global growth and value creation strategy,
Ford Credit continued to deliver strong results in the third quarter.
Ford Credit’s third quarter pre-tax profit of $498 million was $71
million higher than a year ago. The higher pre-tax profit is more than
explained by higher volume, reflecting increases in nearly all financing
products, including non-consumer and consumer finance receivables
globally, as well as leasing in North America.
For the full year, Ford continues to expect Ford Credit pre-tax profit
to be $1.8 billion to $1.9 billion. The company’s guidance for Ford
Credit’s year-end managed receivables and managed leverage also is
unchanged. Ford now expects Ford Credit’s distributions to its parent to
be about $400 million, up from the prior guidance of $250 million. This
increase is primarily driven by higher net income at Ford Credit.
2014 OUTLOOK
This year is a critical building block in the One Ford plan. Ford
continues to expect its 2014 pre-tax profits to be about $6 billion,
excluding special items. The company is on track with its record 23
global new product launches in preparation for a more profitable 2015.
Ford continues to expect its North America operating margin to be at the
lower end of its 8 percent to 9 percent guidance range, and better
results in Europe, Asia Pacific and Ford Credit compared with 2013.
| |
| |
| |
2014 KEY METRICS -- BUSINESS UNITS | | | | | Memo: |
|
|
|
| 2013 |
| | | 2014 |
| | | | Full | | 2014 Full Year | | First Nine |
| | | | Year | | Compared with 2013 | | Months |
|
| | | | | Results | | Plan | | Outlook | | Results |
| | Automotive (Mils.)* | | | | | | | | | | | | | | |
| |
North America
| | | |
$
|
|
|
|
|
|
8,809
| | | |
Lower
| |
On Track
| |
$
|
|
|
|
|
|
5,350
| | |
| |
- Operating Margin
| | | |
10.2
| |
%
| |
8 - 9%
| |
Low End Of Range
| |
8.7
| |
%
|
| |
South America
| | | |
$
| | | | | |
(33
|
)
| | |
About Equal
| |
About $(1,000)
| |
$
| | | | | |
(975
|
)
| |
| |
Europe
| | | |
(1,442
|
)
| | |
Better
| |
About $(1,200)
| |
(619
|
)
| |
| |
Middle East & Africa
| | | |
(69
|
)
| | |
About Breakeven
| |
On Track
| |
62
| | |
| |
Asia Pacific
| | | |
327
| | | |
About Equal
| |
About $700
| |
494
| | |
| |
Net Interest Expense
| | | |
(801
|
)
| | |
About Equal
| |
About $(700)
| |
(500
|
)
| |
| | Ford Credit (Mils.) | | | |
$
| | | | | |
1,756
| | | |
About Equal
| |
$1,800 - $1,900
| |
$
| | | | | |
1,431
| | |
| | | | | | | | | | | | | | | |
|
* | | Excludes special items | | | | | | | | | | | | | | |
| | | |
|
| | | |
|
2014 PLANNING ASSUMPTIONS AND KEY METRICS | | | Memo: |
| | | | | | 2013 | | | | 2014 |
| | | | | | Full | | | | First Nine |
| | | | | | Year | | 2014 Full Year | | Months |
| | | | | | Results | | Plan | | Outlook | | Results |
| | Planning Assumptions (Mils.) | | | | | | | | | | | | | | |
| |
Industry Volume * -- U.S.
| | | |
15.9
| | | |
16.0 - 17.0
| |
16.8
| |
16.7
| | |
| |
-- Europe 20
| | | |
13.8
| | | |
13.5 - 14.5
| |
14.5
| |
14.5
| | |
| |
-- China
| | | |
22.2
| | | |
22.5 - 24.5
| |
23.8
| |
23.5
| | |
| | | | | | | | | | | | | | | |
|
| | Key Metrics | | | | | | | | | | | | | | |
| | Automotive (Compared with 2013): | | | | | | | | | | | | | | |
| |
- Revenue (Bils.)
| | | |
$
| | | | | |
139.4
| | | |
About Equal
| |
On Track
| |
$
| | | | | |
102.0
| | |
| | | | | | | | | | | | | | | |
|
| |
- Operating Margin **
| | | |
5.4
| |
%
| |
Lower
| |
On Track
| |
4.2
| |
%
|
| | | | | | | | | | | | | | | |
|
| |
- Operating-Related Cash Flow (Bils.) ***
| | | |
$
| | | | | |
6.1
| | | |
Substantially Lower
| |
Lower
| |
$
| | | | | |
3.1
| | |
| | | | | | | | | | | | | | | |
|
| | Ford Credit (Compared with 2013): | | | | | | | | | | | | | | |
| |
- Pre-Tax Profit (Bils.)
| | | |
$
| | | | | |
1.8
| | | |
About Equal
| |
$1.8 - $1.9
| |
$
| | | | | |
1.4
| | |
| | | | | | | | | | | | | | | |
|
| | Company: | | | | | | | | | | | | | | |
| |
- Pre-Tax Profit (Bils.) ***
| | | |
$
| | | | | |
8.6
| | | |
$7 - $8
| |
About $6
| |
$
| | | | | |
5.2
| | |
| | | | | | | | | | | | | | | |
|
*
| | Based, in part, on estimated vehicle registrations; includes
medium and heavy trucks |
**
| | Automotive operating margin is defined as Automotive pre-tax
results, excluding special items and Other Automotive, divided by
Automotive revenue |
***
| | Excludes special items; see "Income from Continuing Operations"
and “Operating-Related Cash Flows Reconciliation to GAAP” tables on
pages 12 and 14 |
| |
|
2015 OUTLOOK
Ford remains focused on delivering the key aspects of the One Ford plan,
which are unchanged:
-
Aggressively restructuring to operate profitably at the current demand
and changing model mix
-
Accelerating the development of new products that customers want and
value
-
Financing the plan and improving the balance sheet
-
Working together effectively as one team, leveraging Ford’s global
assets
In 2015, Ford expects to realize the benefits of its global product
investment and growth strategies, and will continue its strong product
push with 16 global vehicle launches. The company expects its pre-tax
profit, excluding special items, to be significantly higher — in the
$8.5 billion to $9.5 billion range — with all five Automotive regions
improving on 2014 results.
“We are committed to offering our customers the freshest lineup of
world-class vehicles in the industry,” said Fields. “Our One Ford plan
remains fundamental to our performance going forward, and our
investments this year will fuel profitable growth in 2015.”
|
|
|
|
|
| |
2015 GUIDANCE | | | | | | |
|
| | | | | | | Outlook |
| | Planning Assumptions (Mils.) | | | | | | |
| |
Industry Volume * -- U.S.
| | | | | |
16.8 - 17.5
|
| |
-- Europe 20
| | | | | |
14.8 - 15.3
|
| |
-- China
| | | | | |
24.0 - 26.0
|
| | | | | | | |
|
| | Key Metrics | | | | | | |
| | Automotive: | | | | | | |
| |
- Revenue
| | | | | |
Higher ***
|
| | | | | | | |
|
| |
- Operating Margin **
| | | | | |
Higher ***
|
| | | | | | | |
|
| |
- Operating-Related Cash Flow **
| | | | | |
Positive
|
| | | | | | | |
|
| | Ford Credit: | | | | | | |
| |
- Pre-Tax Profit
| | | | | |
Equal To Or Higher ***
|
| | | | | | | |
|
| | Company: | | | | | | |
| |
- Pre-Tax Profit (Bils.) **
| | | | | |
$8.5 - $9.5
|
| |
|
*
| | Includes medium and heavy trucks |
**
| | Excludes special items | | | | | | |
***
| | Compared with 2014 | | | | | | |
| | | | | | | |
|
| | | | | | | |
|
| | | | | | | |
|
*The financial results discussed herein are presented on a
preliminary basis; final data will be included in Ford’s Quarterly
Report on Form 10-Q for the period ended September 30, 2014. The
following information applies to the information throughout this release:
- Pre-tax results exclude special items
unless otherwise noted.
- All references to records by Automotive business units are since at
least 2000 when Ford began reporting specific business unit results.
- See tables at the end of this release for the nature and amount of
special items, and reconciliation of items designated as “excluding
special items” to U.S. generally accepted accounting principles
(“GAAP”). Also see the tables for reconciliation to GAAP of Automotive
gross cash, operating-related cash flow and net interest.
- Discussion of overall Automotive cost changes is measured primarily
at present-year exchange and excludes special items and discontinued
operations; in addition, costs that vary directly with production
volume, such as material, freight and warranty costs, are measured at
present-year volume and mix.
- Wholesale unit sales and production volumes include the sale or
production of Ford-brand and JMC-brand vehicles by unconsolidated
affiliates. JMC refers to our Chinese joint venture, Jiangling Motors
Corporation. See materials supporting the October 24, 2014 conference
calls at www.shareholder.ford.com
for further discussion of wholesale unit volumes.
**Excludes special items and “Income/(Loss) attributable to
non-controlling interests.” See tables at the end of this release for
the nature and amount of these special items and reconciliation to GAAP.
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. Forward-looking statements are
based on expectations, forecasts, and assumptions by Ford management and
involve a number of risks, uncertainties, and other factors that could
cause actual results to differ materially from those stated, including,
without limitation:
-
Decline in industry sales volume, particularly in the United States or
Europe, due to financial crisis, recession, geopolitical events, or
other factors;
-
Decline in Ford’s market share or failure to achieve growth;
-
Lower-than-anticipated market acceptance of Ford’s new or existing
products;
-
Market shift away from sales of larger, more profitable vehicles
beyond Ford’s current planning assumption, particularly in the United
States;
-
An increase in or continued volatility of fuel prices, or reduced
availability of fuel;
-
Continued or increased price competition resulting from industry
excess capacity, currency fluctuations, or other factors;
-
Fluctuations in foreign currency exchange rates, commodity prices, and
interest rates;
-
Adverse effects resulting from economic, geopolitical, or other events;
-
Economic distress of suppliers that may require Ford to provide
substantial financial support or take other measures to ensure
supplies of components or materials and could increase costs, affect
liquidity, or cause production constraints or disruptions;
-
Work stoppages at Ford or supplier facilities or other limitations on
production (whether as a result of labor disputes, natural or man-made
disasters, tight credit markets or other financial distress,
production constraints or difficulties, or other factors);
-
Single-source supply of components or materials;
-
Labor or other constraints on Ford’s ability to maintain competitive
cost structure;
-
Substantial pension and postretirement health care and life insurance
liabilities impairing our liquidity or financial condition;
-
Worse-than-assumed economic and demographic experience for
postretirement benefit plans (e.g., discount rates or investment
returns);
-
Restriction on use of tax attributes from tax law “ownership change;”
-
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 regulations
resulting in higher costs, cash expenditures, and/or sales
restrictions;
-
Unusual or significant litigation, governmental investigations, or
adverse publicity arising out of alleged defects in products,
perceived environmental impacts, or otherwise;
-
A change in requirements under long-term supply arrangements
committing Ford to purchase minimum or fixed quantities of certain
parts, or to pay a minimum amount to the seller (“take-or-pay”
contracts);
-
Adverse effects on results from a decrease in or cessation or clawback
of government incentives related to investments;
-
Inherent limitations of internal controls impacting financial
statements and safeguarding of assets;
-
Cybersecurity risks to operational systems, security systems, or
infrastructure owned by Ford, Ford Credit, or a third-party vendor or
supplier;
-
Failure of financial institutions to fulfill commitments under
committed credit and liquidity facilities;
-
Inability of Ford Credit to access debt, securitization, or derivative
markets around the world at competitive rates or in sufficient
amounts, due to credit rating downgrades, market volatility, market
disruption, regulatory requirements, or other factors;
-
Higher-than-expected credit losses, lower-than-anticipated residual
values, or higher-than-expected return volumes for leased vehicles;
-
Increased competition from banks or other financial institutions
seeking to increase their share of financing Ford vehicles; and
-
New or increased credit, consumer, or data protection or other
regulations resulting in higher costs and/or additional financing
restrictions.
Ford cannot be certain that any expectation, forecast, or assumption
made in preparing forward-looking statements will prove accurate, or
that any projection will be realized. It is to be expected that there
may be differences between projected and actual results. Ford’s
forward-looking statements speak only as of the date of their initial
issuance, and Ford does not undertake any obligation to update or revise
publicly any forward-looking statement, whether as a result of new
information, future events, or otherwise. For additional discussion, see
“Item 1A. Risk Factors” in Ford’s Annual Report on Form 10-K for the
year ended December 31, 2013, as updated by Ford’s subsequent Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K.
CONFERENCE CALL DETAILS
Ford Motor Company (NYSE:F) releases its preliminary third quarter 2014
financial results at 7:00 a.m. EDT today. The following briefings will
be held after the announcement:
-
At 9:00 a.m. (EDT), Mark Fields, president and chief executive
officer, and Bob Shanks, executive vice president and chief financial
officer, will host a conference call to discuss Ford’s 2014 third
quarter results.
-
At 11:00 a.m. (EDT), Neil Schloss, vice president and treasurer;
Stuart Rowley, vice president and controller, and Michael Seneski,
chief financial officer, Ford Motor Credit Company, will host a
conference call focusing on Ford Motor Credit Company’s 2014 third
quarter results.
The presentations (listen-only) and supporting materials will be
available at www.shareholder.ford.com.
Representatives of the investment community will have the opportunity to
ask questions on both conference calls, as will representatives of the
news media on the first call.
Access Information - Friday,
October 24, 2014
Earnings Call: 9:00 a.m. EDT
Toll-Free:
1.800.299.9630
International: 1.617.786.2904
Earnings
Passcode: Ford Earnings
Fixed Income: 11:00 a.m. EDT
Toll-Free: 1.888.339.2688
International:
1.617.847.3007
Fixed Income Passcode: Ford Fixed Income
REPLAYS
(Available
after 12:00 p.m. EDT the day of the event through Friday, October 31,
2014)
www.shareholder.ford.com
Toll Free: 1.888.286.8010
International: 1.617.801.6888
Replay Passcodes:
Earnings:
66498332
Fixed Income: 11783947
About Ford Motor Company
Ford Motor Company, a global automotive industry leader based in
Dearborn, Mich., manufactures or distributes automobiles across six
continents. With about 189,000 employees and 65 plants worldwide, the
company’s automotive brands include Ford and Lincoln. The company
provides financial services through Ford Motor Credit Company. For more
information regarding Ford and its products worldwide, please visit www.corporate.ford.com.
|
|
|
| | |
| | |
|
|
| | |
| |
| | | | | | | | | | | | | | |
|
TOTAL COMPANY | | | | | | | | | | | | | | | |
CALCULATION OF EARNINGS PER SHARE | | | | Third Quarter 2014 | | | | First Nine Months 2014 |
|
| | | | | | | After-Tax | | | | | | After-Tax |
| | | | | | | | Operating | | | | | | Operating |
| | | | | | Net Income | | Results Excl. | | | | Net Income | | Results Excl. |
| | | | | | Attributable | | Special | | | | Attributable | | Special |
| | | | | | to Ford | | Items* | | | | to Ford | | Items* |
| | After-Tax Results (Mils.) | | | | | | | | | | | | | | | |
| |
After-tax results*
| | | |
$
|
835
| | |
$
|
936
| | | | |
$
|
3,135
| | |
$
|
3,585
|
| |
Effect of dilutive 2016 Convertible Notes**
| | | |
12
|
| |
12
|
| | | |
36
|
| |
36
|
| |
Diluted after-tax results
| | | |
$
|
847
|
| |
$
|
948
|
| | | |
$
|
3,171
|
| |
$
|
3,621
|
| | | | | | | | | | | | | | | | |
|
| | Basic and Diluted Shares (Mils.) | | | | | | | | | | | | | | | |
| |
Basic shares (Average shares outstanding)
| | | |
3,861
| | |
3,861
| | | | |
3,915
| | |
3,915
|
| |
Net dilutive options
| | | |
48
| | |
48
| | | | |
47
| | |
47
|
| |
Dilutive 2016 Convertible Notes
| | | |
101
|
| |
101
|
| | | |
100
|
| |
100
|
| |
Diluted shares
| | | |
4,010
|
| |
4,010
|
| | | |
4,062
|
| |
4,062
|
| | | | | | | | | | | | | | | | |
|
| |
EPS (Diluted)
| | | |
$
|
0.21
| | |
$
|
0.24
| | | | |
$
|
0.78
| | |
$
|
0.89
|
| | | | | | | | | | | | | | | | |
|
*
| | Excludes Income/(Loss) attributable to non-controlling interests;
special items detailed on page 13 |
**
| | As applicable, includes interest expense, amortization of
discount, amortization of fees, and other changes in income or loss
that result from the application of the if-converted method for
convertible securities |
|
|
|
| | |
| | |
|
| | |
| | |
|
| | |
| | | | | | | | | | | | | | | | | | |
|
TOTAL COMPANY | | | | | | | | | | | | | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | | | | | | | | | | | | | | | | | Memo: |
| | | | | Third Quarter | | | First Nine Months | | | Full Year |
| | | | | 2013 | | 2014 | | | 2013 | | 2014 | | | 2013 |
| | | | |
(Mils.)
| |
(Mils.)
| | |
(Mils.)
| |
(Mils.)
| | |
(Mils.)
|
| Automotive | | | | | | | | | | | | | | | | | | | |
|
North America
| | | |
$
|
|
|
2,296
| | |
$
|
|
|
1,410
| | | |
$
|
|
|
7,009
| | |
$
|
|
|
5,350
| | | |
$
|
8,809
| |
|
South America
| | | |
160
| | |
(170
|
)
| | |
93
| | |
(975
|
)
| | |
(33
|
)
|
|
Europe
| | | |
(182
|
)
| |
(439
|
)
| | |
(913
|
)
| |
(619
|
)
| | |
(1,442
|
)
|
|
Middle East & Africa
| | | |
(25
|
)
| |
(15
|
)
| | |
35
| | |
62
| | | |
(69
|
)
|
|
Asia Pacific
| | | |
116
| | |
44
| | | |
218
| | |
494
| | | |
327
| |
|
Other Automotive
| | | |
(139
|
)
| |
(144
|
)
| | |
(469
|
)
| |
(537
|
)
| | |
(656
|
)
|
|
Total Automotive (excl. special items)
| | | |
$
| | |
2,226
| | |
$
| | |
686
| | | |
$
| | |
5,973
| | |
$
| | |
3,775
| | | |
$
|
6,936
| |
|
Special items -- Automotive
| | | |
(498
|
)
| |
(160
|
)
| | |
(1,257
|
)
| |
(763
|
)
| | |
(1,568
|
)
|
|
Total Automotive
| | | |
$
| | |
1,728
| | |
$
| | |
526
| | | |
$
| | |
4,716
| | |
$
| | |
3,012
| | | |
$
|
5,368
| |
| | | | | | | | | | | | | | | | | | | |
|
| Financial Services | | | | | | | | | | | | | | | | | | | |
|
Ford Credit
| | | |
$
| | |
427
| | |
$
| | |
498
| | | |
$
| | |
1,388
| | |
$
| | |
1,431
| | | |
$
|
1,756
| |
|
Other Financial Services
| | | |
(64
|
)
| |
(3
|
)
| | |
(71
|
)
| |
(45
|
)
| | |
(84
|
)
|
|
Total Financial Services
| | | |
$
| | |
363
| | |
$
| | |
495
| | | |
$
| | |
1,317
| | |
$
| | |
1,386
| | | |
$
|
1,672
| |
| | | | | | | | | | | | | | | | | | | |
|
| Total Company | | | | | | | | | | | | | | | | | | | |
|
Pre-tax results
| | | |
$
| | |
2,091
| | |
$
| | |
1,021
| | | |
$
| | |
6,033
| | |
$
| | |
4,398
| | | |
$
|
7,040
| |
|
(Provision for)/Benefit from income taxes
| | | |
(818
|
)
| |
(188
|
)
| | |
(1,914
|
)
| |
(1,261
|
)
| | |
135
|
|
|
Net income
| | | |
$
| | |
1,273
| | |
$
| | |
833
| | | |
$
| | |
4,119
| | |
$
| | |
3,137
| | | |
$
|
7,175
| |
|
Less: Income/(Loss) attributable to non-controlling interests
| | | |
1
|
| |
(2
|
)
| | |
3
|
| |
2
|
| | |
(7
|
)
|
|
Net income attributable to Ford
| | | |
$
|
|
|
1,272
|
| |
$
|
|
|
835
|
| | |
$
|
|
|
4,116
|
| |
$
|
|
|
3,135
|
| | |
$
|
7,182
|
|
| | | | | | | | | | | | | | | | | | | |
|
|
Memo: Excluding special items
| | | | | | | | | | | | | | | | | | | |
|
Pre-tax results
| | | |
$
| | |
2,589
| | |
$
| | |
1,181
| | | |
$
| | |
7,290
| | |
$
| | |
5,161
| | | |
$
|
8,608
| |
|
(Provision for)/Benefit from income taxes
| | | |
(767
|
)
| |
(247
|
)
| | |
(1,991
|
)
| |
(1,574
|
)
| | |
(2,022
|
)
|
|
Less: Income/(Loss) attributable to non-controlling interests
| | | |
1
|
| |
(2
|
)
| | |
3
|
| |
2
|
| | |
(7
|
)
|
|
After-tax results
| | | |
$
|
|
|
1,821
|
| |
$
|
|
|
936
|
| | |
$
|
|
|
5,296
|
| |
$
|
|
|
3,585
|
| | |
$
|
6,593
|
|
|
|
|
| | |
| | |
|
| | |
| | |
|
| | |
| | | | | | | | | | | | | | | | | | |
|
TOTAL COMPANY | | | | | | | | | | | | | | | | | | | |
SPECIAL ITEMS | | | | | | | | | | | | | | | | | | Memo: |
|
| | | | | Third Quarter | | | First Nine Months | | | Full Year |
| | | | | | 2013 | | 2014 | | | 2013 | | 2014 | | | 2013 |
| | | | | |
(Mils.)
| |
(Mils.)
| | |
(Mils.)
| |
(Mils.)
| | |
(Mils.)
|
| | Personnel-Related Items | | | | | | | | | | | | | | | | | | | |
| |
Separation-related actions*
| | | |
$
|
|
|
(250
|
)
| |
$
|
|
|
(160
|
)
| | |
$
|
|
|
(700
|
)
| |
$
|
|
|
(434
|
)
| | |
$
|
(856
|
)
|
| | | | | | | | | | | | | | | | | | | | |
|
| | Other Items | | | | | | | | | | | | | | | | | | | |
| |
Ford Sollers equity impairment
| | | |
—
| | |
—
| | | |
—
| | |
(329
|
)
| | |
—
| |
| |
U.S. pension lump-sum program
| | | |
(145
|
)
| |
—
| | | |
(439
|
)
| |
—
| | | |
(594
|
)
|
| |
FCTA - subsidiary liquidation
| | | |
(103
|
)
| |
—
| | | |
(103
|
)
| |
—
| | | |
(103
|
)
|
| |
Ford Romania consolidation loss
| | | |
—
|
| |
—
|
| | |
(15
|
)
| |
—
|
| | |
(15
|
)
|
| |
Total other items
| | | |
(248
|
)
| |
—
|
| | |
(557
|
)
| |
(329
|
)
| | |
(712
|
)
|
| | | | | | | | | | | | | | | | | | | | |
|
| |
Total special items
| | | |
$
|
|
|
(498
|
)
| |
$
|
|
|
(160
|
)
| | |
$
|
|
|
(1,257
|
)
| |
$
|
|
|
(763
|
)
| | |
$
|
(1,568
|
)
|
| | | | | | | | | | | | | | | | | | | | |
|
| |
Tax special items
| | | |
$
| | |
(51
|
)
| |
$
| | |
59
| | | |
$
| | |
77
| | |
$
| | |
313
| | | |
$
|
2,157
| |
| | | | | | | | | | | | | | | | | | | | |
|
| |
Memo:
| | | | | | | | | | | | | | | | | | | |
| |
Special Items impact on earnings per share**
| | | |
$
| | |
(0.14
|
)
| |
$
| | |
(0.03
|
)
| | |
$
| | |
(0.29
|
)
| |
$
| | |
(0.11
|
)
| | |
$
|
0.14
| |
| | | | | | | | | | | | | | | | | | | | |
|
*
| |
Primarily related to separation costs for personnel at the Genk and
U.K. facilities
|
**
| |
Includes related tax effect on special items and tax special items
|
|
|
|
| | |
| | |
|
| | |
| | |
|
| |
| | | | | | | | | | | | | | | | | |
|
NET INTEREST RECONCILIATION TO GAAP | | | | | | | | | | | | | | | | | | Memo: |
|
| | | | | Third Quarter | | | First Nine Months | | | Full Year |
| | | | | | 2013 | | 2014 | | | 2013 | | 2014 | | | 2013 |
| | | | | |
(Mils.)
| |
(Mils.)
| | |
(Mils.)
| |
(Mils.)
| | |
(Mils.)
|
| | | | | | | | | | | | | | | | | | | | |
|
| |
Interest expense (GAAP)
| | | |
$
|
|
|
(204
|
)
| |
$
|
|
|
(204
|
)
| | |
$
|
|
|
(617
|
)
| |
$
|
|
|
(619
|
)
| | |
$
|
(829
|
)
|
| |
Investment-related interest income (GAAP)
| | | |
38
| | |
65
| | | |
125
| | |
145
| | | |
163
| |
| |
Interest income/(expense) on income taxes (GAAP)
| | | |
—
|
| |
(3
|
)
| | |
—
|
| |
34
|
| | |
—
|
|
| |
Subtotal
| | | |
$
| | |
(166
|
)
| |
$
| | |
(142
|
)
| | |
$
| | |
(492
|
)
| |
$
| | |
(440
|
)
| | |
$
|
(666
|
)
|
| | | | | | | | | | | | | | | | | | | | |
|
| |
Adjusted for items included / excluded from net interest:
| | | | | | | | | | | | | | | | | | | |
| |
Include: Gains/(Losses) on cash equiv. & mark. securities*
| | | |
34
| | |
(12
|
)
| | |
(7
|
)
| |
18
| | | |
(7
|
)
|
| |
Include: Gains/(Losses) on extinguishment of debt
| | | |
—
| | |
—
| | | |
(18
|
)
| |
(5
|
)
| | |
(18
|
)
|
| |
Other
| | | |
(29
|
)
| |
(17
|
)
| | |
(80
|
)
| |
(73
|
)
| | |
(110
|
)
|
| |
Net Interest
| | | |
$
|
|
|
(161
|
)
| |
$
|
|
|
(171
|
)
| | |
$
|
|
|
(597
|
)
| |
$
|
|
|
(500
|
)
| | |
$
|
(801
|
)
|
| | | | | | | | | | | | | | | | | | | | |
|
*
| |
Excludes mark-to-market adjustments of our investment in Mazda
|
|
| | |
|
| | |
| | |
| | |
| | | | | | | | | | | | |
|
AUTOMOTIVE SECTOR | | | | | | | | | | | | | |
GROSS CASH RECONCILIATION TO GAAP | | | | | | | | | | | | | |
|
| |
|
|
| 2013 | | | 2014 |
| | | | | | Sep. 30 | | Dec. 31 | | | Mar. 31 | | Jun. 30 | | Sep. 30 |
| | | | | |
(Bils.)
| |
(Bils.)
| | |
(Bils.)
| |
(Bils.)
| |
(Bils.)
|
| | | | | | | | | | | | | | | | | | | |
|
| |
Cash and cash equivalents
| | | |
$
|
|
|
5.7
| | |
$
|
|
|
5.0
| | | |
$
|
|
|
4.5
| | |
$
|
|
|
4.7
| | |
$
|
6.0
| |
| |
Marketable securities
| | | |
20.4
|
| |
20.1
|
| | |
20.7
|
| |
21.1
|
| |
16.9
|
|
| |
Total cash and marketable securities (GAAP)
| | | |
$
| | |
26.1
| | |
$
| | |
25.1
| | | |
$
| | |
25.2
| | |
$
| | |
25.8
| | |
$
|
22.9
| |
| | | | | | | | | | | | | | | | | | | |
|
| |
Securities in transit*
| | | |
—
|
| |
(0.3
|
)
| | |
—
|
| |
—
|
| |
(0.1
|
)
|
| |
Gross cash
| | | |
$
|
|
|
26.1
|
| |
$
|
|
|
24.8
|
| | |
$
|
|
|
25.2
|
| |
$
|
|
|
25.8
|
| |
$
|
22.8
|
|
| | | | | | | | | | | | | | | | | | | |
|
*
| | The purchase or sale of marketable securities for which the cash
settlement was not made by period end and a payable or receivable
was recorded on the balance sheet |
|
| | |
| | |
|
| | |
| | | | | | | | | |
|
AUTOMOTIVE SECTOR | | | | | | | | | | |
OPERATING-RELATED CASH FLOWS RECONCILIATION TO GAAP | | | | | | | | | Memo: |
| |
|
|
| Third Quarter | | | First Nine Months | | | Full Year |
| | | | | 2013 |
| 2014 | | | 2013 | | 2014 | | | 2013 |
| | | | |
(Bils.)
| |
(Bils.)
| | |
(Bils.)
| |
(Bils.)
| | |
(Bils.)
|
| | | | | | | | | | | | | | | | | | | |
|
|
Net cash provided by/(used in) operating activities (GAAP)
| | | |
$
|
|
|
2.0
| | |
$
|
|
|
0.6
| | | |
$
|
|
|
6.4
| | |
$
|
|
|
6.7
| | | |
$
|
7.7
| |
| | | | | | | | | | | | | | | | | | | |
|
|
Items included in operating-related cash flows
| | | | | | | | | | | | | | | | | | | |
|
Capital spending
| | | |
(1.5
|
)
| |
(1.8
|
)
| | |
(4.6
|
)
| |
(5.2
|
)
| | |
(6.6
|
)
|
|
Proceeds from the exercise of stock options
| | | |
0.1
| | |
0.1
| | | |
0.3
| | |
0.2
| | | |
0.3
| |
|
Net cash flows from non-designated derivatives
| | | |
(0.1
|
)
| |
—
| | | |
(0.3
|
)
| |
0.1
| | | |
(0.3
|
)
|
| | | | | | | | | | | | | | | | | | | |
|
|
Items not included in operating-related cash flows
| | | | | | | | | | | | | | | | | | | |
|
Cash impact of JSB and personnel-reduction actions
| | | |
0.1
| | |
—
| | | |
0.2
| | |
0.1
| | | |
0.3
| |
|
Funded pension contributions
| | | |
1.1
| | |
0.3
| | | |
3.9
| | |
1.1
| | | |
5.0
| |
|
Tax refunds and tax payments from affiliates
| | | |
—
| | |
—
| | | |
(0.3
|
)
| |
(0.2
|
)
| | |
(0.3
|
)
|
|
Other
| | | |
(0.1
|
)
| |
0.1
|
| | |
—
|
| |
0.3
|
| | |
—
|
|
|
Operating-related cash flows
| | | |
$
|
|
|
1.6
|
| |
$
|
|
|
(0.7
|
)
| | |
$
|
|
|
5.6
|
| |
$
|
|
|
3.1
|
| | |
$
|
6.1
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
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Contacts:
Ford Motor Company
Media:
Whitney
Eichinger
1.313.390.5565
weiching@ford.com
Equity
Investment Community:
Erik Eliason
1.313.594.0613
fordir@ford.com
Fixed
Income Investment Community:
Stephen Dahle
1.313.621.0881
fixedinc@ford.com
Shareholder
Inquiries:
1.800.555.5259 or
1.313.845.8540
stockinf@ford.com
Source: Ford Motor Company
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