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 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 $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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Report: Ford assures workers of bonuses if targets are met

Jonathon Ramsey — Sun, 04 Apr 2010 11:35:00 EST

Filed under: Ford, Earnings/Financials, UAW/Unions

The latest musical theme for Ford workers and shareholders could be Junior Mafia's "Get Money." The Blue Oval just told its salaried employees that 2010 bonuses would average three percent. Not only does that reinstate the bonus system missing for the past two years, it rewards salaried employees the same way it rewards executives. Of course, it depends on the year's corporate and individual objectives being met, but there are few better ways to help ensure targets are delivered upon than by promising a bunch of extra credits in the form of greenbacks.

Employees aren't the only folks at the Ford cash machine: banks get a dose, with Ford revealing it will write a check for almost ten percent of its debt by next Monday, and the UAW is looking at a jackpot of more than one billion dollars by cashing out stock warrants with a nearly 50-percent profit between their purchase and sell prices.

Make no mistake, Ford still needs to keep this up for a while yet - $31.45 billion in debt remains to be paid to the banks, and $7 billion remains due to the UAW's Voluntary Employment Benefit Association (VEBA) for employee pensions and healthcare. But when you can pay things off and have enough left to spread some cream around, well, that's a good start to the year.

[Source: Detroit Free Press | Image: Karen Bleier/AFP/Getty]

Report: Ford assures workers of bonuses if targets are met originally appeared on Autoblog on Sun, 04 Apr 2010 11:35:00 EST. Please see our terms for use of feeds.

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Ford posts $1 billion in profit, surprisingly good third quarter report

Jeremy Korzeniewski — Mon, 02 Nov 2009 10:55:00 EST

Filed under: Ford, Earnings/Financials

Surprising news comes courtesy of Ford this morning in the form of an unexpectedly good third quarter report. The Blue Oval posted $997 million in positive net income over the third quarter, which represents its first operating profit in over a year. Even better news is that Ford's success was driven in part by actual product sales, with market share increasing in North America, South America and Europe.

Ford finished the third quarter with $23.8 billion in Automotive gross cash, which is $2.8 billion better than how it finished the previous quarter. Ford Credit, the financial arm of the automaker's operations, also posted relatively good numbers in the third quarter of 2009 with an after-tax profit of $427 million. Though Ford is selling fewer vehicles overall from the heyday of the early 2000s, its off-lease models aren't depreciating as rapidly as before and are selling for higher transaction prices at auction.

While making nearly a billion dollars in the third quarter of 2009 is welcome news, the automaker still has a tough road ahead in the coming years. In recognition of this fact, Ford isn't predicting solid profitability and consistently positive operating cash flow until 2011. For all the mind-numbing details, hit the jump for the full press release from Ford.

[Source: Ford]

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Ford posts $1 billion in profit, surprisingly good third quarter report originally appeared on Autoblog on Mon, 02 Nov 2009 10:55:00 EST. Please see our terms for use of feeds.

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Amidst the loss trimming, Ford revises Volvo's strategy

Dan Roth — Sat, 10 Nov 2007 11:03:00 EST

Filed under: Ford, Volvo, Earnings/Financials

Ford only lost hundreds of millions during the third quarter of 2007, versus the 5-something billion they torched through for the same period in 2006. Sales and revenue are up, and while we can't see it yet, there might be a light at the end of the tunnel. Of course, it could be attached to a train, but let's focus on the positive. Ford's been eyeing the sell off of some of their PAG holdings as a way to stem their ongoing losses, and it's been speculated that Volvo could be on the chopping block. For now, though, the brand appears to be something that Ford wants to hang on to. Along with the third-quarter finances, Ford announced a new stragegy is in the works for Volvo. Mulally has pledged to improve Volvos' stature as a premium product, as well as improving their cost structure (a corporate way to say make more money on the cars by driving down costs).

Volvo's platforms and technology are spread pretty liberally throughout the rest of Ford. The Taurus/Sable rides on a version of Volvo's P2 platform, and the Mazda 3, Euro Focus (yes, we know, "send it over here Ford, I'll buy one" - whatevs, you know you won't), and C30/S40/V50 are all on the C1 platform, while the EUCD platform which underpins the S80 and the new XC70/V70 wagons, as well as the upcoming Lincoln MKS. It would be hard for Ford to just cut the brand loose tomorrow, though reading between the lines makes it seem like they're positioning the Swedish automaker for future sale. The new plan includes improving the image of Volvo to a more premium status, distancing Ford from Volvo's operations, and fast-tracking product development. Making the division nearly an independent entity will increase its attractiveness when suitors come knocking, but it looks like Ford's biding its time for now, doing prep work to ensure a fat sale price when the eventuality occurs.

[Source: LLN]

Amidst the loss trimming, Ford revises Volvo's strategy originally appeared on Autoblog on Sat, 10 Nov 2007 11:03:00 EST. Please see our terms for use of feeds.

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