Ford Reports Third Quarter Financial Results
NEWS
 

  1. Welcome to Ford Inside News General discussion forum for Ford

    Welcome to Ford Inside News - a website dedicated to all things Ford.

    You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our community, at no cost, you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is free, fast and simple, Join Ford Inside News today!
     
+ Reply to Thread
Results 1 to 7 of 7

Thread: Ford Reports Third Quarter Financial Results

  1. #1
    The Spaminator ausrutherford's Avatar
    Join Date
    Jul 2008
    Location
    Death Valley, South Carolina
    Age
    23
    Posts
    5,499
    Thanks
    9
    Thanked 257 Times in 133 Posts
    Blog Entries
    19

    Ford Reports Third Quarter Financial Results

    Ford Earns Record Third Quarter 2012 Pre-Tax Operating Profit of $2.2 Billion, Net Income of $1.6 Billion+
    Ford Media


    • Best-ever third quarter total company and Automotive pre-tax profit, driven by record North American results; positive Automotive operating-related cash flow; strong liquidity of $34.4 billion
    • Third quarter pre-tax profit of $2.2 billion, or 40 cents per share, an increase of $200 million from third quarter 2011. Ford has now posted a pre-tax profit for 13 consecutive quarters
    • Third quarter net income, including favorable special items of $83 million, was $1.6 billion, or 41 cents per share, both about the same as third quarter 2011
    • Total Automotive pre-tax profit was $1.8 billion, an increase of $436 million from third quarter 2011
    • Ford North America achieved its highest quarterly profit and operating margin since at least 2000 when the company started reflecting the region as a separate business unit, with third quarter pre-tax profit of
    • $2.3 billion and a 12 percent operating margin
    • Ford Credit reported a pre-tax profit of $393 million, a decrease of $188 million from third quarter 2011, in line with expectations
    • Announced comprehensive transformation plan to restore profitability in Europe by mid-decade
    • For the full year, Ford continues to project strong total company pre-tax profit and positive Automotive operating-related cash flow



    DEARBORN, Mich., Oct. 30, 2012 Record profit and operating margin in North America and continued solid performance from Ford Credit drove the best-ever third quarter profit for Ford Motor Company [NYSE: F] as it reports quarterly results today.

    The company reported a pre-tax profit of $2.2 billion, or 40 cents per share, and net income of
    $1.6 billion, or 41 cents per share. The company also continued to generate positive Automotive operating-related cash flow, and ended the period with a strong liquidity position of $34.4 billion, an increase of $500 million from the second quarter.

    The Ford team delivered a best-ever third quarter, driven by record results in North America and the continued strength of Ford Credit, said Alan Mulally, Ford president and CEO. While we are facing near-term challenges in Europe, we are fully committed to transforming our business in Europe by moving decisively to match production to demand, improve revenue through new products and a stronger brand, improve our cost efficiencies and take advantage of opportunities to profitably grow our business.

    Automotive operating-related cash flow was $700 million, the 10th consecutive quarter of positive performance. Ford finished the third quarter with Automotive gross cash of $24.1 billion, exceeding debt by $9.9 billion. This is a net cash improvement of $1.8 billion compared to a year ago, and an increase of $400 million from the second quarter. Automotive debt of $14.2 billion at the end of the third quarter was unchanged from the end of the second quarter. Ford completed its last drawdown of low-cost loans for advanced technologies in August, and began repayment in September.

    Ford also made payments of $600 million to its worldwide funded pension plans. This included $500 million in discretionary payments to U.S. funded plans in line with the companys previously disclosed long-term strategy to de-risk its funded pension plans. Dividends paid in the quarter totaled nearly $200 million.

    AUTOMOTIVE SECTOR

    The increase in total Automotive pre-tax profit and operating margin is more than explained by the record quarter in North America. This was driven primarily by higher net pricing and lower contribution costs, offset partially by higher structural costs and unfavorable exchange. Lower contribution costs reflect primarily favorable commodity hedge effects.

    Ford North America


    For the third straight quarter, Ford North America pre-tax profit exceeded $2 billion, and its operating margin exceeded 10 percent. The improvement compared with third quarter 2011 reflected favorable volume and mix, higher net pricing and lower contribution costs, mainly favorable commodity hedging effects; higher structural costs and unfavorable exchange were partial offsets. Ford North Americas pre-tax profit through the first nine months of 2012 exceeded its 2011 full year profit.

    The companys outlook for North America for full year 2012 remains unchanged. Ford expects significantly higher pre-tax operating profit and margin compared with 2011, as consumers continue to respond to the companys strong product lineup. Ford also remains committed to maintaining its competitive cost structure as it grows its business in North America.

    During the quarter, the company added a shift to its Louisville Assembly Plant, where it builds the all-new Escape. This was the last major action in the companys plan to add 400,000 units of annual incremental capacity by the end of the year.

    Ford South America


    Pre-tax profit and operating margin, while slightly positive, declined substantially compared with a year ago primarily due to unfavorable exchange mainly a weaker Brazilian real unfavorable volume and mix, and higher costs. Volume was affected in the quarter by the launch ramp-up of new products and production reductions in Venezuela related to currency restrictions. Although net pricing was higher, it was constrained compared to prior years by a more intense competitive environment.

    Ford continues to expect Ford South America to be profitable for the full year, but at a level substantially lower than 2011, consistent with prior guidance.

    Ford Europe


    Ford Europes results compared with a year ago largely reflected unfavorable market factors, including the lowest level of industry sales in almost 20 years. The decline is more than explained by lower volume, including lower industry, lower share and unfavorable dealer stock changes; lower costs and favorable exchange were partial offsets.

    With industry sales for the 19 markets the company reports having dropped by 20 percent in the past five years and only modest improvement expected by mid-decade, the company reported that it believes the changes in the European business environment to be structural, rather than cyclical, in nature. Against this backdrop, Ford last week announced a series of actions to accelerate its European transformation and restore its European operations to profitability by mid-decade, targeting a long-term operating margin for Ford Europe of 6 to 8 percent.

    The strategy under the One Ford plan focuses on all parts of the business product, brand and cost. The approach includes an aggressive new product rollout of 15 new global vehicles within five years, along with the introduction of a broad array of smart technologies. The company also announced new initiatives to continue strengthening the Ford brand, including strategic destocking of dealer inventories in the fourth quarter of 2012.

    Finally, Ford announced a plan to close three facilities and relocate products for a more efficient manufacturing footprint, including leveraging One Ford operations outside of Europe for some of its new products. The planned facility actions would reduce Ford Europes installed vehicle assembly capacity, excluding Russia, by 18 percent or 355,000 units, affect 13 percent of its workforce, and yield gross cost savings annually of $450 million to $500 million when completed. Some actions are subject to an information and consultation process with employee representatives in Belgium.

    Ford reiterates its Oct. 25 guidance that, as a result of the deteriorating environment in Europe, as well as elements of its transformation plan, the company now expects Ford Europes pre-tax loss for full year 2012 to exceed $1.5 billion.

    Ford Asia Pacific Africa


    Ford Asia Pacific Africa and Ford China set market-share records in the third quarter as the company began to benefit from increased capacity and strong sales of the recently launched Focus in China and Ranger pickup in the region.

    The third quarter profit improvement was explained by favorable volume and mix, higher net pricing and favorable exchange, offset partially by higher costs associated with new products and investments to support higher volumes and future growth.

    For the full year, Ford expects Asia Pacific Africa results to be a loss, roughly in line with 2011.

    Other Automotive

    In the third quarter of 2012, Other Automotive reported a loss of $139 million, about unchanged from a year ago. The loss mainly reflects net interest expense. For the full year, Ford expects net interest expense to be about $500 million, consistent with the low end of prior guidance.

    FINANCIAL SERVICES SECTOR


    Ford Motor Credit Company

    The decrease in Ford Credits pre-tax results was in line with expectations and was more than explained by fewer lease terminations, which resulted in fewer vehicles sold at a gain, lower financing margin and the non-recurrence of credit loss reserve reductions.

    Ford Credit now expects full year pre-tax profit of about $1.6 billion, and total distributions to its parent of about $600 million. Ford Credit continues to project managed receivables at year end to be in the range of $85 billion to $90 billion.

    Ford Credit remains a strategic asset for Ford, delivering high levels of quality and customer satisfaction with operating efficiencies that are among the best.

    THIRD AND FOURTH QUARTER PRODUCTION VOLUMES


    In the third quarter, total company production was about 1.4 million units, 24,000 units higher than a year ago. This is 45,000 units below the companys prior guidance, reflecting primarily parts supply issues on several products.

    Ford expects total company fourth quarter production to be about 1.5 million units, up 112,000 from a year ago, reflecting higher volume in all regions except Europe. Lower production volumes in Europe reflect lower industry as well as Fords strategic decision to reduce dealer stocks to generate ongoing benefits for Ford, its customers and dealers.

    Planned fourth quarter production is more than 100,000 units higher than third quarter, reflecting Fords seasonal operating pattern, as well as added capacity in North America and Asia Pacific Africa.

    OUTLOOK 2012

    Fords planning assumptions and key metrics include the following:


    Going forward, Ford remains committed to all aspects of its One Ford plan, which is unchanged:

    Aggressively restructure to operate profitably at the current demand and changing model mix
    Accelerate the development of new products that customers want and value
    Finance the plan and improve the balance sheet
    Work together effectively as one team leveraging Fords global assets
    Overall this year, Ford expects its total company pre-tax operating profit to be strong and its Automotive operating-related cash flow to be positive driven by outstanding results in North America and solid performance by Ford Credit.

    Our record quarterly profit and operating margin in North America, the acceleration of the transformation of our business in Europe that will return it to profitability by mid-decade, and the achievement of record quarterly Ford market share in both Asia Pacific Africa and in China all demonstrate that our One Ford plan is working, said Bob Shanks, Ford chief financial officer. We will continue to assess opportunities to strengthen our business and achieve profitable growth in all the regions in which we operate.

    The company continues to work toward its mid-decade guidance and remains confident in its plan and ability to deliver profitable growth.
    Have Ford Sales in Markets Not Included in this POST? Email Me

    GO TIGERS! BCS Orange Bowl Champs!


  2. Remove Advertisements
    Ford Inside News
    Advertisements
     

  3. #2
    The Spaminator ausrutherford's Avatar
    Join Date
    Jul 2008
    Location
    Death Valley, South Carolina
    Age
    23
    Posts
    5,499
    Thanks
    9
    Thanked 257 Times in 133 Posts
    Blog Entries
    19

    Re: Ford Reports Third Quarter Financial Results

    A 10%+ operating margin in NA. Wow.
    Have Ford Sales in Markets Not Included in this POST? Email Me

    GO TIGERS! BCS Orange Bowl Champs!


  4. #3
    FIN Moderator
    Join Date
    Jul 2010
    Location
    Metairie, LA
    Posts
    1,564
    Thanks
    517
    Thanked 285 Times in 205 Posts

    Re: Ford Reports Third Quarter Financial Results

    Wow! That's really good. Good job, Ford!

  5. #4
    Ford Falcon Ute Andrew L's Avatar
    Join Date
    Dec 2008
    Location
    St. Petersburg, FL
    Age
    25
    Posts
    3,118
    Thanks
    230
    Thanked 443 Times in 281 Posts

    Re: Ford Reports Third Quarter Financial Results

    Nice to see some positive news instead of all the other negative news like CR and Europe
    Current Car: 2004 Lincoln LS V6 Luxury Cashmere Tri-Coat 3.0L Duratec V6 5 Speed Automatic with SST
    Previous Cars
    1994 Ford Econoline 150 Centaurus LTD Conversion Van Red and White 351 V8 4 Speed Automatic
    1999 Mercury Sable LS Premium Toreador Red Clear Coat Metalic 3.0L Duratec V6 4 Speed Automatic

  6. #5
    Ford Escort
    Join Date
    May 2011
    Posts
    56
    Thanks
    0
    Thanked 3 Times in 3 Posts

    Re: Ford Reports Third Quarter Financial Results

    How can FORD be doing so well when the CR report is so negative.
    Sometimes CR is missing the big picture.
    I wish that the MyFord Touch would be TOTALLY PERFECTED.
    Then we would be Number 1 - as it was meant to be!

  7. #6
    Ford Mondeo
    Join Date
    Oct 2012
    Posts
    1,100
    Thanks
    979
    Thanked 270 Times in 210 Posts

    Re: Ford Reports Third Quarter Financial Results

    I hesitate to even imagine how well they would be doing if the EU market had not of imploded.

  8. #7
    Ford Focus ZX scford58's Avatar
    Join Date
    Jun 2011
    Location
    Houston, TX
    Posts
    459
    Thanks
    815
    Thanked 113 Times in 92 Posts

    Re: Ford Reports Third Quarter Financial Results

    Quote Originally Posted by bomt1 View Post
    How can FORD be doing so well when the CR report is so negative.
    Sometimes CR is missing the big picture.
    I wish that the MyFord Touch would be TOTALLY PERFECTED.
    Then we would be Number 1 - as it was meant to be!
    I don't have faith in CR ever placing an American car company as #1. Personally, I think Ford should be there now!

  9. Remove Advertisements
    Ford Inside News
    Advertisements
     

Quick Reply Quick Reply

Register Now

Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.


Similar Threads

  1. Ford Reports 3rd Quarter Financial Results
    By ausrutherford in forum FIN Headline News
    Replies: 4
    Last Post: 11-09-2011, 10:35 AM
  2. Replies: 5
    Last Post: 10-19-2010, 12:36 PM
  3. GM Reports First Quarter 2010 Results
    By mchicha in forum General Motors Discussion
    Replies: 5
    Last Post: 05-17-2010, 03:29 PM
  4. Replies: 0
    Last Post: 02-05-2008, 10:15 PM
  5. Mazda Reports Fiscal Year 2006 Financial Results
    By ndwariga in forum Mazda Discussion
    Replies: 3
    Last Post: 04-29-2007, 11:04 PM

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may post replies
  • You may not post attachments
  • You may not edit your posts
Powered by vBadvanced CMPS v4.1.2