- 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; 21stconsecutive 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
|
)
|
||||||||||
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.
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.
|
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
|
)
|
|||||
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
|
|||||||||||
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.
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
Full
Year
|
2014 Full Year
Compared with 2013
|
2014
First Nine 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
Full
Year
|
2014 Full Year
|
2014
First Nine
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
|
|||||||||||||
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
|
|
