Autoblog

Ford posts decade-best $2.1B profit in Q1 2013

Seyth Miersma — Wed, 24 Apr 2013 11:30:00 EST

As predicted, Ford has reported that its first quarter of 2013 was a resounding success overall, with a pretax profit of $2.1 billion ($0.41 per share), and a net income of $1.6 billion ($0.40 per share). In fact, Ford made a pretax profit of some $2.4 billion in its home North American market, with that total number being pulled down by losses in South America and Europe. That gaudy North American profit is the strongest result by the automaker since 2000.

Ford's companywide profit for Q1 was down $147 million from one year ago, while the net income number marked an increase of $215 million year over year. Overall, this is Ford's 15th-consecutive profitable quarter.

The bad news from the European market was even worst in Q1 2013 than it was last year. Pretax losses of $462 million - on revenue of $6.7 billion - represented a year-over-year change of -$313 million. In South American, the company reported a loss of $218 million, down from a slim profit of $54 million in Q1 2012. The news was better for Ford Asia Pacific Africa, where a $6 million pretax profit in 2013 showed a year-over-year gain of some $101 million when compared to losses in 2012. Scroll down to read Ford's full press release.

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Ford posts decade-best $2.1B profit in Q1 2013 originally appeared on Autoblog on Wed, 24 Apr 2013 11:30:00 EST. Please see our terms for use of feeds.

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Ford could post best-ever profits in Q1 2013

Michael Harley — Tue, 23 Apr 2013 16:32:00 EST

Filed under: Ford, Earnings/Financials

Analysts are saying that Ford Motor Company may have earned a record $2.7 billion pretax profit in North America during the first quarter of 2013, a number that represents its highest first quarter profit ever. The impressive earnings are further proof that the American automaker is making a solid comeback as the economy begins to recover.

Morgan Stanley and JP Morgan Chase are estimating that Ford's first quarter North American profit may have topped 12 percent. The firm cited the automaker's fresh lineup, but noted that CEO Alan Mulally needs to uphold the pace as the company works to gain ground in the car and utility segments.

Ford's success has been led by increased demand for its F-Series pickup, the best-selling vehicle in the US for 31 years, and by the Fusion sedan that recently recorded its best-ever quarterly sales in the domestic market. Ford is expected to release its first-quarter revenue on Wednesday, of this week.

Ford could post best-ever profits in Q1 2013 originally appeared on Autoblog on Tue, 23 Apr 2013 16:32:00 EST. Please see our terms for use of feeds.

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Ford nets $5.7B in 2012, $1.6B in fourth quarter

Zach Bowman — Tue, 29 Jan 2013 14:30:00 EST

Filed under: Europe, Ford, Earnings/Financials

Ford brought in $5.7 billion in net income during 2012, which is around $307 million less than one year prior. Even so, the automaker closed out 2012 with the highest pre-tax profit for a single quarter in nearly 10 years, earning $1.7 billion in the fourth quarter thanks largely to a higher-than-average truck mix in the US. That's a jump of $577 million over 2011. Likewise, that translated into fourth quarter income of $1.6 billion. All told, Ford set a full-year pre-tax profit record in 2012. But that doesn't necessarily mean everything is rosy in the land of the Blue Oval.

Like every other manufacturer, 2012 saw Ford get hammered in the European Union, where a deep economic recession continues to drive down consumer confidence. The automaker lost more than $700 million in Europe, and saw full revenue of $26.6 billion in 2012. That's a decline of $7.2 billion compared to last yea. Ford says the market for new vehicles in Europe has contracted to 13.5 million units, the lowest number in 17 years. You can read the full press release below for more information.

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Ford admits consumer shift toward small cars will eat into profits

Jeremy Korzeniewski — Fri, 16 Nov 2012 14:32:00 EST

Filed under: Europe, Ford, Earnings/Financials, South America

Big, expensive cars and trucks equal big profits. Small, inexpensive cars equal small profits.

The mathematics in today's marketplace simply can't be argued, and the result, as buyers increasingly switch from trucks, truck-based 'utes and big family cars into smaller sedans and hatchbacks, is less earning potential for full-line automakers. Like Ford, for instance. Citing the rising trend of smaller cars and crossovers, Ford Chief Operating Officer Mark Fields warned that fourth-quarter earnings will be down compared to last year.

Smaller profits in the US market are one thing; an even bigger problem is the almost complete lack of profit margin in South America and huge multi-billion-dollar losses in Europe, where economies are in crisis and automakers are laying off workers and closing plants. In other words, we're thinking Ford's eight to ten-percent margins in the States aren't looking so bad...

Ford admits consumer shift toward small cars will eat into profits originally appeared on Autoblog on Fri, 16 Nov 2012 14:32:00 EST. Please see our terms for use of feeds.

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Ford up $1.6B in Q3 thanks to record profits in North America

Jonathon Ramsey — Tue, 30 Oct 2012 15:20:00 EST

Filed under: Ford, Earnings/Financials

Now that the bell has rung to signal the end of Q3 2012, Ford is standing in the ring with both hands in the air like Rocky: The company's overall profit of $1.63 billion for the last three months is nearly equal to its entire 2011 total of $1.94B. Those numbers come thank to the record-breaking pretax operating profit in North America of $2.33B on revenues of $19.5B, the third straight quarter that The Blue Oval has crossed the two-billion mark. Customers are paying more, on average, for Ford vehicles, another contributor to the company maintaining double-digit profit margins on its products.

True, there are a couple of bruises. Losses in Europe continue, with The Continent suffering an even larger decline in pretax revenues to $468 million, and European revenue has dropped to $5.8 billion compared to $7.8 billion a year ago. South America is another sore spot, with exchange rates and currency restrictions being blamed for a 23-percent decline in revenue to $2.3 billion and a screeching 97-percent shrinkage in pretax operating profit to $9 million, down from $276 million in the same quarter last year. Global revenue is also down three percent to $32.1 billion.

But North America's numbers have kept the tide rising, even with the rise in the company's North American tax rate to 30 percent, a 20-percent jump over last year. Ford's prognosis for the rest of the year is for strong results and even greater production - 1.5 million in Q4 versus 1.4 million in Q3 - even with expanded costs to market the new models it is introducing as well as continued challenges in Europe. That means great news for two of our three domestic automakers, following the Chrysler announcement of an 80-percent jump in Q3 profit to $381 million. General Motors will report tomorrow. For the inner CFO in you, Ford's number-filled press release is below.

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Ford books $1.4B, profits dragged down by Europe and Asia

John Neff — Fri, 27 Apr 2012 10:30:00 EST

Filed under: China, Europe, Ford, Earnings/Financials

What a difference a few years make. Back in 2009, Ford Motor Company's North American operations were dragging down its earnings. The company reported a net loss of $1.4 billion in that year's first quarter when market share in the U.S. was falling but rising overseas. The situation today, however, is the mirror opposite.

Today Ford reported a first-quarter net income for 2012 of $1.4 billion on the strength of sales in the States. While that's a 180-degree turnaround compared to the same quarter in 2009, it's still a decline in earnings compared to the $2.6 billion earned just last year. This time, however, the blame for the fall lies with Ford's operations in Europe and Asia.

In Europe, Ford reported an operating loss this quarter of $149 million, blaming the continent's shrinking markets and weaker demand for parts and accessories. The company's Asian operations reported an operating loss of $95 million, which can be attributed more to investments in new plants for increased production than shrinking sales. Ford attributes the rest of its losses during the first quarter to higher tax expenses and special charges.

Fortunately, Ford's North American operations were able to offset most of the company's losses elsewhere. The region reported a pre-tax operating profit of $2.1 billion, up from $1.8 billion last year and the highest quarterly profit here since 2000. Revenue in this region alone was $18.6 billion, up $700 million from the same quarter last year and the largest chunk of the automaker's global quarterly revenue of $32.4 billion, which was down $700 million.

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Ford books $1.4B, profits dragged down by Europe and Asia originally appeared on Autoblog on Fri, 27 Apr 2012 10:30:00 EST. Please see our terms for use of feeds.

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Ford reports biggest profits since '98, still fails to meet estimates

Zach Bowman — Fri, 27 Jan 2012 11:02:00 EST

Filed under: Europe, Ford, Earnings/Financials

Ford has announced the company's single largest profit since 1998, thanks in part to a one-time tax gain. The company drew in a net income of $13.6 billion last quarter and the news marked the automaker's 11th consecutive profitable quarter. For perspective, Ford made $190 million in 2010. The company's net income was bolstered by the fact that Ford eliminated a valuation allowance against deferred tax benefits. The company created the valuation allowance in 2006 when it began reporting operating losses. Analysts reportedly see the elimination as a sign that the manufacturer expects to be profitable in coming years.

The company made $8.8 billion in profit in 2011, or $1.51 a share. That's an increase of $463 million over 2010. Even so, the company's net income missed analysts' estimates thanks in part to higher commodity costs, currency fluctuations and flooding in Thailand. The automaker spent $100 million more in commodities like steel than it projected. Those facts, combined with a deteriorating European market, helped Ford miss analyst estimates by 5 cents per share.

Ford reports biggest profits since '98, still fails to meet estimates originally appeared on Autoblog on Fri, 27 Jan 2012 11:02:00 EST. Please see our terms for use of feeds.

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Ford reports $1.6B third quarter earnings

Jeff Sabatini — Wed, 26 Oct 2011 13:01:00 EST

Filed under: Ford, Earnings/Financials

Just how much is $1.6 billion? Enough to buy every single Mustang Ford sold through the first eight months of the year - at retail.

While Ford's net income came in at $1.6 billion, the company reported a $1.9 billion pre-tax operating profit for the third quarter, down $111 million from the third quarter of 2010. Automotive profits accounted for $1.3 billion of the total, up $45 million over last year. Third quarter revenue topped $33 billion.

Ford's focus over the last few years centered on improving its domestic operations appears to be working, as North and South America reported profitable third quarters, while the rest of the world - Europe, Asia Pacific and Africa - languished in the red. It was Ford's ninth consecutive profitable quarter, thanks in large measure to a 14 percent improvement in U.S. sales so far this year.

Ford's current roll has led to credit ratings upgrades from two key agencies, with some analysts speculating that the automaker will resume paying shareholder dividends soon, something it has not done since 2006. Read all 17 pages of the official release, after the jump.

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Ford reports $1.6B third quarter earnings originally appeared on Autoblog on Wed, 26 Oct 2011 13:01:00 EST. Please see our terms for use of feeds.

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Ford, Chrysler report quarterly earnings

Jeff Glucker — Tue, 26 Jul 2011 13:00:00 EST

Filed under: Chrysler, Ford, Earnings/Financials

As we continue to pull the daily sheets from our Word of the Day calendar and accountants are busy counting the days of their fiscal calendars, the pencil pushers at Ford and Chrysler can rest easy for a moment because they just finished compiling the numbers for the second quarter.

Ford earned a net income of $2.4 billion in Q2, which is actually $201 million less than it had raked in by this time last year. The net income was affected by a reduction in staff, various dealership actions, pension settlements in Belgium and the move to eliminate the Mercury brand. The automaker enters the rest of the year with $32.2 billion in liquid assets, which will come in handy as Ford looks to expand its market share around the globe.

Chrysler as gone in a different direction than Ford for the second quarter of 2011. Compared to Q2 last year, the automaker is up 30 percent with net income of $13.7 billion. Chrysler's numbers should continue to grow as it releases new or redesigned models, and has paid off major debts owed to the United States and Canadian governments.

Ready to take a deeper dive into the quarterly earnings for both automakers? Click past the jump for the full financial reports.

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Ford, Chrysler report quarterly earnings originally appeared on Autoblog on Tue, 26 Jul 2011 13:00:00 EST. Please see our terms for use of feeds.

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Ford earns $2.6B in first quarter, most since 1998

Chris Shunk — Tue, 26 Apr 2011 09:57:00 EST

Filed under: Ford, Earnings/Financials

Ford announced its most rewarding first quarter since 1998, with $2.6 billion in earnings on global sales of $33.1 billion. The earnings are up 22 percent versus the first quarter of 2010, while sales increased by $5 billion for the quarter. This large increase in sales was the biggest driver for the overall profit, as the Dearborn, Michigan-based automaker moved 1.4 million units in Q1 2011, up 16 percent versus Q1 2010.

Most of Ford's profit came from moving vehicles here in North America, where $1.8 billion in total earnings were bolstered by improved sales and lower incentive spending. Ford also managed to eek out a $293 million profit in Europe, which posted a loss in the fourth quarter of, 2010. In all, Ford managed $2.8 billion in operating profit, and $2.1 billion of that money came from automotive operations. Ford Credit earned $713 million on the quarter.

Further good news comes on the debt front, as Ford managed to pay down its debt by $2.5 billion during Q1 while also increasing liquidity by $2.8 billion. That means Ford has a much larger cushion in the event the industry's economic situation once again takes a turn for the worse, while also paying less money in interest. Ford eliminated $1 billion in annual interest costs in 2010.

Ford's outstanding quarter took analysts by surprise, as the projections of a 50 cents-per-share profit was demolished by a 61 cents-per-share reality. As a result, Ford shares are up four percent in early Tuesday trading. Hit the jump to read Ford's official statement.

[Sources: Ford, The Detroit News | Image: Chris Shunk/AOL]

Continue reading Ford earns $2.6B in first quarter, most since 1998

Ford earns $2.6B in first quarter, most since 1998 originally appeared on Autoblog on Tue, 26 Apr 2011 09:57:00 EST. Please see our terms for use of feeds.

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Ford posts sixth consecutive quarterly profit

Zach Bowman — Tue, 26 Oct 2010 09:27:00 EST

Filed under: Ford, Earnings/Financials

Ford has posted its sixth consecutive quarterly profit with a net income of $1.7 billion. That figure marks the largest third-quarter earnings for the company since 1990, sailing well above the $997 million Ford earned during the third quarter of 2009.

As a result of its earnings, the automaker said it will move to pay down its substantial debt sooner than anticipated and step up production for the fourth quarter by 20,000 units. Originally, Ford had said that it aimed to have zero net debt by the end of 2011. Now the Blue Oval is aiming for the same goal by the end of this year. That means that the company will have the same amount of debt as it has funds to pay it.

Of course, those numbers all hinge on excluding Volvo from the picture. Total revenue for the third quarter of 2010 was $29 billion, which is around $1.3 billion less than the same period of 2009. If you nix Volvo revenue from the picture, however, the Ford bottom line increases by the $1.7 billion mentioned above. Hit the jump for the full press release.

[Sources: Ford, Automotive News, The Detroit Bureau | Image: AP/Paul Sakuma]

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Ford posts sixth consecutive quarterly profit originally appeared on Autoblog on Tue, 26 Oct 2010 09:27:00 EST. Please see our terms for use of feeds.

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How is it that GM is still worth more than Ford?

Dan Roth — Mon, 19 Apr 2010 13:41:00 EST

Filed under: Etc., Government/Legal, Chrysler, Ford, GM, Earnings/Financials

General Motors, which hasn't been allowed to forget its recent financial propping up by all of us, is apparently still worth more than Ford Motor Company. That's a dubious fact that sticks in the craw of Detroit Free Press columnist Tom Walsh. Ford, you'll recall, preemptively mortgaged itself up to, and including its dental fillings to avoid the fate that befell GM and Chrysler. What's not computing for Walsh is that despite clearer financial leadership, Ford is still worth less according to the trading price of Motors Liquidation bonds, the entrails of old GM.

The whole thing is buried in a bunch of financial mumbo-jumbo, and the value of Motors Liquidation bonds are tied to bets on the success of a future initial public offering of the new GM. Sound excessively creative and possibly even irrationally exuberant? Despite having its most solid lineup in years and aggressively trimming brands, dealers, and liabilities, the General is clearly not out of the woods yet. Perhaps to market gamblers, GM is looking good right now, but there are plenty of hurdles to clear before its bailout is a true success.

In comparison, Ford is likely to post a profit this year, and GM will have to put up some good numbers for a few quarters to keep investors thinking that it's a worthwhile investment.

[Source: Detroit Free Press]

How is it that GM is still worth more than Ford? originally appeared on Autoblog on Mon, 19 Apr 2010 13:41:00 EST. Please see our terms for use of feeds.

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Ford earned $2.7B profit in 2009, predicts repeat in 2010

John Neff — Thu, 28 Jan 2010 08:33:00 EST

Filed under: Ford, Earnings/Financials

Ford Motor Company has reported a fourth quarter profit for 2009 that helped the Dearborn, MI-based automaker end the last fiscal year in the black, its first yearly profit in about four years. While Ford's 2009 Q4 income was $868 million versus a loss of $5.9 billion the year prior, the effect on the year as a whole put $2.7 billion in the automaker's pockets versus a loss of $14.8 billion in 2008. What's more, Ford's Chief Financial Officer Lewis Booth forecasts a profitable 2010 and raised the company's outlook in 2011 from "break-even or better" to "solidly profitable."

Booth did caution that much of last year's profit had to do with debt restructuring, but Ford also lowered its structural costs in Q4 by $500 million and $5.1 billion for all of 2009, which also beat the company's own goal of a $4 billion reduction.

While financial numbers are difficult to understand and even harder to explain, there is one thing Ford announced that we're sure everyone can understand. The company will raise its first quarter production levels in North America by 20,000 units, from 550,000 to 570,000. This will help Ford meet rising demand for its cars and trucks and keep inventory hovering around a 60-day supply, the industry standard.

[Source: Ford, Automotive News - sub. req. | Image: Karen Bleier/AFP/Getty]

Ford earned $2.7B profit in 2009, predicts repeat in 2010 originally appeared on Autoblog on Thu, 28 Jan 2010 08:33:00 EST. Please see our terms for use of feeds.

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Ford may be considering sale of Mazda stake

Alex Nunez — Sun, 12 Oct 2008 11:08:00 EST

Filed under: Ford, Mazda, Earnings/Financials, Rumormill

The financial peril that currently faces the U.S. domestic automakers is no secret, and according to Wall Street Journal report published yesterday, Ford is mulling over the possibility of unloading at least part of its controlling stake in Mazda to raise cash. Japanese media, via the AP, said that Ford would likely keep some interests in the Japanese automaker after such a move -- no surprise when you consider how closely tied Ford and Madza are right now in terms of shared technology. The Oval's third-quarter numbers are expected to be pretty ugly, and the Journal's source said that the potential sale of its Mazda holdings is one of many moves reportedly under consideration as Dearborn looks for ways to add to its cash on hand. For its part, Mazda denies that any decision has been made (a non-denial, really -- no outlets reported that a deal had yet been completed) and Ford weighed in with a to-be-expected "no comment." As they say, to be continued...

[Sources: The Wall Street Journal, AP]

Ford may be considering sale of Mazda stake originally appeared on Autoblog on Sun, 12 Oct 2008 11:08:00 EST. Please see our terms for use of feeds.

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