-
Company on track to deliver about $10.2 billion in total company
adjusted pre-tax profit in 2016; adjusted effective tax rate now
expected to be in the low 30 percent range
-
Declares first quarter regular dividend of $0.15 per share and a $200
million supplemental cash dividend – or $0.05 per share – for a
combined $0.20 per share
-
Reconfirms total company adjusted pre-tax profit to be solid in 2017,
lower than 2016; core business remains strong, while investments in
emerging opportunities increase
-
Continues to forecast improved profitability in 2018, led by gains in
the core business
Company Website:
http://corporate.ford.com/
DEARBORN, Mich. -- (Business Wire)
Ford Motor Company (NYSE: F) is on track for another strong year in 2016
and continues to expect about $10.2 billion intotal company
adjusted pre-tax profit. The company now expects its adjusted effective
tax rate to be in the low 30 percent range. Ford will give further
details this evening when it presents at the Deutsche Bank Global Auto
Industry Conference. The slide deck of that presentation can be found here.
“As we close 2016, Ford continues to be a solid investment with
attractive upside on emerging opportunities,” said Mark Fields, Ford
president and CEO. “We are pleased to, once again, reward our
shareholders with a regular and supplemental dividend, as we continue
delivering profitable growth for all.”
As a result of the company’s performance in 2016, Ford’s Board of
Directors declared a first quarter dividend of $0.15 per share and a
$200 million supplemental cash dividend that is equal to $0.05 per
share. This provides a combined total of $0.20 per share of dividends on
the company’s outstanding Class B and common stock.
The first quarter regular dividend maintains the same level as the
dividends paid in 2016. The first quarter regular and supplemental
dividends are payable on March 1, 2017 to shareholders of record at the
close of business on Jan. 20, 2017. Subject to the approval of the Board
of Directors, the company will make distributions totaling about $2.8
billion in 2017. By year-end, cumulative distributions to shareholders
will total $15.4 billion since the company’s regular dividend was
restored in 2012.
Consistent with the guidance outlined at Ford’s Investor
Day in September, the company expects continued strong performance
in 2017, with total company adjusted pre-tax profit somewhat lower
compared to 2016 due to increased investments in electrification,
autonomy and mobility. The company also anticipates cost efficiencies of
greater than $3 billion in 2017 alone and improved profitability in 2018
– led by gains in the core business.
At tonight’s Deutsche Bank Global Auto Industry Conference, Fields will
provide an update on Ford’s strategic priorities to fortify its profit
pillars, transform underperforming parts of its business and grow
emerging opportunities as it expands to an auto and mobility company.
Ford is focused on building on its clear global leadership in trucks,
vans, commercial vehicles and performance vehicles, while growing global
strength in utility vehicles. Ford also is transforming underperforming
parts of its core business, including luxury, small vehicles and select
emerging markets – and is already seeing benefits.
In electrification, last week, Ford detailed seven
of the 13 new global electrified vehicles it plans to introduce in
the next five years. This announcement comes on the heels of the
recently unveiled next-generation
Fusion Hybrid autonomous development vehicle, which demonstrates the
advancement of Ford’s in-house hardware and software engineering efforts
and brings the company one step closer to delivering a high-volume,
fully autonomous vehicle for ride sharing in 2021.
Ford also continues to innovate in the area of connectivity, which
supports both the core business as well as growth in emerging
opportunities. Last week at CES, the company announced several new
initiatives, including partnering with Toyota to establish the SmartDeviceLink
Consortium and bringing Amazon’s
Alexa into Ford vehicles.
Ford’s presentation at the Deutsche Bank Global Auto Industry Conference
will begin at approximately 6:30 p.m. EST today. To access the
presentation materials and a listen-only audio webcast, visit shareholder.ford.com.
Note: Total company adjusted pre-tax profit is a non-GAAP financial
measure because it excludes special items. Ford does not provide
guidance on net income, the comparable GAAP financial measure. Full-year
net income in 2016 will include potentially significant special items,
including pension and OPEB remeasurement losses, which presently are
difficult to quantify with reasonable certainty.
About Ford Motor Company
Ford Motor Company is a global automotive and mobility company based
in Dearborn, Michigan. With about 203,000 employees and 62 plants
worldwide, the company’s core business includes designing,
manufacturing, marketing and servicing a full line of Ford cars, trucks
and SUVs, as well as Lincoln luxury vehicles. To expand its business
model, Ford is aggressively pursuing emerging opportunities with
investments in electrification, autonomy and mobility. Ford provides
financial services through Ford Motor Credit Company. For more
information regarding Ford and its products and services, please visit www.corporate.ford.com.
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 our 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,
Europe, or China, 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 or services;
-
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 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, financial institutions, or other
third parties seeking to increase their share of financing Ford
vehicles; and
-
New or increased credit regulations, consumer or data protection
regulations, or other regulations resulting in higher costs and/or
additional financing restrictions.
We 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. Our forward-looking
statements speak only as of the date of their initial issuance, and we
do 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 our 2015 Form 10-K Report, as updated by our subsequent
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
For news releases, related materials and high-resolution photos and
video, visit www.media.ford.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170110006322/en/
Contacts:
Ford Motor Company
Media:
Brad
Carroll
313.390.5565
bcarro37@ford.com
Equity
Investment Community:
Dawn Dombroski
313.845.2868
fordir@ford.com
Fixed
Income Investment Community:
Karen Rocoff
313.621.0965
fixedinc@ford.com
Shareholder
Inquiries:
1.800.555.5259 or
313.845.8540
stockinf@ford.com
Source: Ford Motor Company
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