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F · FORD MOTOR CO

35 filings

10-K

F 10-K Annual Reports

FORD MOTOR CO - 35 annual reports

Filing record · 2016–202610-K1410-Q328-K283

2025
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2025
Ford Motor Company's 2025 Form 10-K shows a sharply weaker year: GAAP net loss of $8.2 billion (EPS -$2.06) versus $5.9 billion net income in 2024, driven by $17.4 billion of pre-tax special items. The largest of these were an $8.4 billion Model e impairment (including goodwill), $3.2 billion impairment of its BlueOval SK (BOSK) JV stake, and about $2.5 billion of EV program cancellation write-downs and charges. Excluding special items, Company adjusted EBIT fell 34% to $6.8 billion (3.6% margin) and adjusted EPS fell to $1.09 from $1.84, as lower Ford Blue and Ford Pro EBIT, including roughly $3 billion of gross tariff costs (about $2 billion net EBIT impact), outweighed improvement in Model e and Ford Credit. Cash generation held up better than earnings. Operating cash flow rose to $21.3 billion, but that was largely Ford Credit's $12.9 billion; Company adjusted free cash flow fell to $3.5 billion from $6.7 billion. Company cash was $28.7 billion and liquidity $49.8 billion, against a stated $20 billion minimum cash target. Shareholder distributions were $3.0 billion, below the 40-50% of adjusted free cash flow target, and total equity fell to $36.0 billion. The company guided 2026 adjusted EBIT to $8.0-10.0 billion and adjusted free cash flow to $5.0-6.0 billion, with capital spending of $9.5-10.5 billion. Management expects roughly $3 billion of additional special-item charges from the BOSK closing in the first half of 2026, plus up to about $4 billion more for EV actions. Credit ratings are investment grade but near the threshold. S&P has BBB- with a negative outlook, and Moody's rates Ford's senior unsecured debt Ba1, below investment grade. The filing also flags contingent exposures, including about $1 billion or more of possible Brazilian tax collateral, a $103 million Hetsler product liability judgment under appeal, and a DPS6 transmission litigation, along with Ford's ongoing NHTSA consent order.
Feb 11, 2026
2024
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2024
Ford Motor Company's 2024 Form 10-K (filed February 6, 2025) shows a company with steady underlying profitability but a sharply divergent segment picture. Revenue rose 5% to $185.0 billion and GAAP net income attributable to Ford increased to $5.9 billion ($1.46 diluted EPS) from $4.3 billion, largely because 2023's pension remeasurement loss and European and Chinese restructuring charges did not recur. Underlying performance was weaker: Company adjusted EBIT fell 2% to $10.2 billion, adjusted EPS declined to $1.84 from $2.01, and the adjusted EBIT margin slipped to 5.5% from 5.9%. Adjusted free cash flow was roughly flat at $6.7 billion. Ford Pro was the clear bright spot, with EBIT up 25% to $9.0 billion and a 13.5% margin, while Ford Blue EBIT dropped 29% to $5.3 billion on exchange-rate headwinds, supplier constraints, and higher costs. Ford Model e lost $5.1 billion, reflecting lower EV pricing and a $1.2 billion charge tied to cancelling an all-electric three-row SUV program. The 2025 outlook is cautious. Management guides to adjusted EBIT of $7.0 to $8.5 billion, adjusted free cash flow of $3.5 to $4.5 billion, and capital spending of $8.0 to $9.0 billion. Guidance assumes no new U.S. tariffs, but the filing explicitly flags the tariffs announced February 1, 2025 on imports from Canada, Mexico, and China, and warns that sustained 25% tariffs would significantly reduce earnings. The Model e loss is guided to widen to $5.0 to $5.5 billion. Balance-sheet liquidity remains solid, with Company cash of $28.5 billion and total Company liquidity of $46.7 billion, while Ford Credit's financial statement leverage is 10.0:1 and its EBT rose to $1.65 billion. Shareholder distributions totaled $3.5 billion in 2024, and the Board declared a $0.15 regular dividend plus a $0.15 supplemental dividend for Q1 2025. Key risks for investors include a potential $1 billion-plus collateral demand in the Brazilian tax disputes (which management considers remote), an unresolved Georgia punitive-damages case that the Georgia Court of Appeals vacated in November 2024, a $165 million NHTSA consent order, and ongoing EV-adoption and regulatory uncertainty around emissions and ZEV requirements.
Feb 6, 2025
2023
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2023
Ford Motor Company's 2023 Form 10-K shows a year of recovering core profitability alongside heavy EV investment and large one-time charges. Revenue rose 11% to $176.2 billion, and net income swung to $4.3 billion (diluted EPS $1.08) from a $2.0 billion loss in 2022. That swing was driven mainly by the non-recurrence of the 2022 Rivian mark-to-market loss and Argo AI impairment, partly offset by $5.1 billion of pre-tax special items, chiefly a pension/OPEB remeasurement loss and European and Chinese restructuring. Company adjusted EBIT was flat at $10.4 billion, with an adjusted EBIT margin of 5.9%, down from 6.6%. Adjusted EPS rose to $2.01 from $1.88. Segment performance was divided. Ford Pro was the standout, with EBIT up $4.0 billion to $7.2 billion and a 12.4% margin, supported by pricing and wholesale growth. Ford Blue EBIT rose modestly to $7.5 billion. Ford Model e lost $4.7 billion (margin of -79.7%), a $2.6 billion deterioration from lower pricing and higher costs. Management recorded about $0.7 billion of EV-related charges and noted lower-than-anticipated EV adoption. Ford Credit EBT fell 50% to $1.3 billion as financing margins, lease residuals, and credit losses worsened. Cash flow from operations rose to $14.9 billion, but adjusted free cash flow fell to $6.8 billion because of higher capital spending ($8.2 billion) and lower Ford Credit distributions. Shareholder distributions totaled $5.3 billion. Looking ahead, 2024 guidance calls for adjusted EBIT of $10–12 billion and adjusted free cash flow of $6–7 billion, with Model e expected to lose $5–5.5 billion. Key risks include the Brazilian tax assessments, a $1.3 billion U.S. customs penalty (Transit Connect), a $1.7 billion punitive damages verdict under appeal, EV transition and regulatory uncertainty, supplier and labor cost pressure from the new UAW contract, and rising interest rates. S&P upgraded Ford to BBB- in October 2023, while Moody's still rates it Ba1.
Feb 7, 2024
2022
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2022
Ford Motor Company's 2022 Form 10-K shows a year of sharp divergence between headline GAAP results and underlying operating performance. Revenue rose 16% to $158.1 billion and Automotive segment EBIT improved $2.3 billion to $9.7 billion, driven by higher net pricing and wholesales (up 7% to 4.23 million units). However, reported net income swung to a loss of $1.98 billion (diluted EPS of -$0.49), compared with $17.9 billion of net income in 2021, largely because of $12.2 billion of pre-tax special items, including a $7.4 billion mark-to-market loss on the Rivian stake and a $2.7 billion impairment of the Argo AI investment. Company adjusted EBIT was $10.4 billion (6.6% margin), and adjusted EPS was $1.88, so investors focused on operating trends are seeing a healthier picture than the GAAP figures suggest. Cash generation and balance sheet items were mixed. Operating cash flow fell to $6.9 billion, but Company adjusted free cash flow rose to $9.1 billion, helped by working capital and Ford Credit distributions. Company cash declined to $32.3 billion and liquidity to $48.0 billion. Ford Credit's EBT fell 44% to $2.7 billion on lower lease residual performance, financing margin and credit loss reserve releases, and its financial statement leverage reached 10:1, at the top of its target range. Capital spending was $6.5 billion, with 2023 guidance of $8 to $9 billion. Looking ahead, 2023 guidance calls for adjusted EBIT of $9 to $11 billion and adjusted free cash flow of about $6 billion, reflecting expected U.S. and European recessions, higher industry incentives, a roughly $1.4 billion decline in Ford Credit EBT, and about $2 billion lower pension income. Management also highlighted the Super Duty launch and supply chain improvement as tailwinds, and noted the upcoming UAW contract negotiation and a $1.7 billion punitive damages verdict in the Hill case (under post-trial motion) and a $1.3 billion CBP penalty, which remain significant legal overhangs.
Feb 3, 2023
2021
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2021
Ford Motor Company's 2021 Form 10-K shows a sharp financial recovery from 2020, driven mainly by pricing, lower warranty costs and a large non-operating gain. Revenue rose 7% to $136.3 billion, and net income attributable to Ford reached $17.9 billion (diluted EPS $4.45), versus a $1.3 billion loss in 2020. However, roughly $9.1 billion of pre-tax gains came from the Rivian IPO and mark-to-market valuation, and a $9.6 billion total pre-tax special-items benefit (largely pension remeasurement and Rivian) inflates GAAP results. Company adjusted EBIT was $10.0 billion (7.3% margin) and adjusted EPS was $1.59, which better reflect operating performance. Automotive EBIT rose to $7.4 billion on higher net pricing, despite wholesales falling 6% to about 3.94 million units because of the semiconductor shortage. Balance sheet and liquidity improved meaningfully. Company cash rose to $36.5 billion (about $26.0 billion excluding Rivian shares), and Company debt excluding Ford Credit fell to $20.4 billion after $7.6 billion of higher-coupon debt was retired, at a $1.7 billion extinguishment loss. Company cash net of debt swung to $16.1 billion. Ford reinstated a $0.10 quarterly dividend in Q4 2021. Ford Credit remained highly profitable, with EBT of $4.7 billion and ROE of 32%, though its receivables shrank 11% and financial statement leverage rose to 9.5:1. Key risks include the ongoing semiconductor shortage, which constrained production and dealer inventory; the Brazilian tax assessments (potential collateral above $1 billion, which management considers remote risk); a $1.3 billion CBP penalty plus $181 million in additional duties on Transit Connect imports, which Ford is contesting; and the heavy cost of the Global Redesign program (about $11 billion of EBIT charges). Management guides 2022 adjusted EBIT to $11.5–12.5 billion, adjusted free cash flow to $5.5–6.5 billion, and wholesales up 10–15%, while noting elevated commodity costs and inflation.
Feb 4, 2022
2020
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2020
Ford Motor Company's 2020 Form 10-K shows a year sharply impacted by COVID-19. Total revenue fell 18% to $127.1 billion, and the company posted a net loss attributable to Ford of $1.3 billion (diluted EPS of -$0.32). Company adjusted EBIT dropped to $2.8 billion from $6.4 billion, with the adjusted EBIT margin falling to 2.2%. Automotive wholesales declined 22% to 4.19 million units, and Automotive EBIT fell to $1.6 billion. Ford Credit remained a relatively steady contributor, with EBT of $2.6 billion, though credit loss reserves rose sharply on pandemic-related economic risk. Balance sheet and liquidity were a clear strength. Ford ended 2020 with $30.8 billion of Company cash and $46.9 billion of total Company liquidity, both substantially higher than a year earlier, largely due to an $8 billion unsecured bond issuance and full draws and repayments on its revolving facilities. Automotive debt roughly doubled to $23.5 billion, and the company suspended its quarterly dividend after the first quarter, paying $0.15 per share for the year versus $0.60 in 2019. Ford's credit ratings are all sub-investment grade at BB+ or Ba2 with negative outlooks from all four rating agencies, a key risk for investors. Looking forward, 2021 guidance calls for adjusted EBIT of $8.0 to $9.0 billion and adjusted free cash flow of $3.5 to $4.5 billion, excluding the impact of a global semiconductor shortage that management says could cut first-quarter production by 10% to 20%. The company also disclosed a plan to exit manufacturing in Brazil with about $4.1 billion of pre-tax special charges, and continued progress on its global redesign. Significant risks flagged include the semiconductor shortage, uncertain emissions and fuel-economy regulation, pension underfunding, and Brazilian tax disputes that could require over $1 billion in collateral.
Feb 5, 2021
2019
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2019
Ford Motor Company's 2019 Form 10-K shows a year of sharp earnings deterioration driven by restructuring and pension charges rather than core operating weakness alone. Revenue fell 3% to $155.9 billion, and net income attributable to Ford collapsed to just $47 million (diluted EPS of $0.01), down from $3.7 billion in 2018. The decline was driven by $6.0 billion of pre-tax special items, including $3.2 billion of Global Redesign charges (European restructuring, India held-for-sale impairment, South America and Russia actions) and a $2.5 billion pension and OPEB remeasurement loss that did not affect 2019 cash. Management's adjusted metrics tell a more moderate story: Company adjusted EBIT fell about 9% to $6.4 billion, adjusted EPS was $1.19, and adjusted free cash flow was flat at $2.8 billion. Underlying performance was mixed. The Automotive segment's EBIT declined to $4.9 billion (3.4% margin) on lower wholesale volumes (down about 10% to 5.4 million units), with North America still the profit engine at $6.6 billion EBIT. China losses narrowed meaningfully, while Europe, South America, and Asia Pacific remained weak or loss-making. Ford Credit was a bright spot, with EBT rising 14% to $3.0 billion on favorable lease residual and credit loss performance, and the Mobility segment's loss widened to $1.2 billion as autonomous vehicle investment rose more than 75%. For investors, the key watch items are the balance sheet and guidance. Company cash was $22.3 billion against a $20 billion target, total Company liquidity was $35.4 billion, and the regular $0.15 quarterly dividend was maintained. The company guided 2020 adjusted EBIT to $5.6 to $6.6 billion and adjusted EPS to $0.94 to $1.20, assuming no material coronavirus impact. Credit ratings were under pressure: S&P cut Ford to BBB- in October 2019 with a stable outlook, and Fitch and DBRS carry negative outlooks, so the company sits at the bottom edge of investment grade. Ongoing risks include the Global Redesign execution, a pending U.S. emissions certification investigation involving DOJ, heavy UAW-related labor costs, and the Brexit transition.
Feb 5, 2020
2018
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2018
Ford Motor Company's 2018 Form 10-K shows a year of sharply lower profitability despite record-level revenue. Total revenues grew 2% to $160.3 billion, but net income attributable to Ford fell to $3.7 billion ($0.92 diluted EPS) from $7.7 billion, and Company adjusted EBIT declined $2.6 billion to $7.0 billion (adjusted EPS $1.30). Management attributes the decline mainly to lower Automotive EBIT, driven by China and Europe, commodity and currency headwinds (about $3.3 billion in identified headwinds, including about $750 million in tariff effects and about $775 million of Takata recall costs), a larger pension and OPEB remeasurement loss from late-2018 market conditions, and personnel separation actions. North America remained the profit engine, while Mobility (autonomous vehicles) and Corporate Other remained loss-making. Balance sheet and liquidity remain solid. Company cash stood at $23.1 billion against a $20 billion target, and Company liquidity was $34.2 billion. Company debt excluding Ford Credit was $14.1 billion, with adjusted debt to EBITDA at 3.2:1. Capital spending was $7.7 billion, and shareholder distributions were about $3.1 billion. Ford Credit delivered its best EBT in eight years at $2.6 billion, though its managed leverage of 8.8:1 is within its target range. Cash conversion was weak, with adjusted cash conversion at 40%, and operating cash flow fell to $15.0 billion from $18.1 billion. Management's 2019 outlook calls for modest improvement: revenue above $160.3 billion, adjusted EBIT margin above 4.4%, and adjusted ROIC above 7.1%. Risks flagged include a possible hard Brexit (estimated $500 million to $1 billion cost), tariffs, excess global capacity (about 42 million units), tightening emissions and fuel economy rules, a voluntary disclosure to the EPA about U.S. emissions certification, and a European competition fine of about $50 million at FCE Bank. Investors should weigh these against the company's ongoing fitness redesign, a Volkswagen alliance for commercial vans, and the planned exit from South American heavy trucks, which carries about $460 million in pre-tax charges.
Feb 21, 2019
2017-A
FORD MOTOR CO Annual Report (Amendment), Year Ended Dec 31, 2017
This is Amendment No. 1 on Form 10-K/A to Ford Motor Company's 2017 Annual Report. It does not contain Ford's own consolidated financial statements. Its sole purpose is to add the audited financial statements of Changan Ford Automobile Corporation Limited (CAF), a 50%-owned, equity-method joint venture in China, as required by Rule 3-09 of Regulation S-X because CAF met the significant-subsidiary test for 2016. Investors should read this filing as supplemental disclosure about one important China joint venture, not as a summary of Ford's overall results. The original 10-K, filed February 8, 2018, is the primary source for Ford's consolidated performance. CAF's 2017 results show a sharp deterioration. Total revenues fell about 15.8% to RMB 99.7 billion from RMB 118.4 billion in 2016. Net income attributable to CAF dropped about 33% to RMB 12.15 billion from RMB 18.07 billion. Cost pressure and lower volumes are not broken out in the filing, but the income statement shows cost of sales falling more slowly than revenue. Operating cash flow nearly halved to RMB 12.5 billion from RMB 24.4 billion, largely because accounts payable unwound by about RMB 2.5 billion. CAF also paid RMB 15.2 billion in dividends in 2017, a large share of its earnings, which drove its cash balance down from RMB 15.1 billion to RMB 8.7 billion. Several items support the reported earnings. The company benefited from a preferential 15% corporate income tax rate versus the 25% statutory rate, which reduced 2017 tax expense by about RMB 1.16 billion. Government grant income was RMB 2.8 billion. A change in the estimated useful lives and residual values of fixed assets reduced 2017 depreciation by about RMB 1.04 billion and increased net profit by about RMB 826 million. Ford should be expected to record its 50% share of CAF's equity income, so weaker CAF earnings reduce Ford's equity earnings from China, although the amount of that impact is not stated in this filing.
Mar 28, 2018
2017
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2017
Ford Motor Company's 2017 Form 10-K (filed February 8, 2018) shows a year of solid but lower earnings, with net income attributable to Ford of $7.6 billion, or $1.90 per diluted share, up $3 billion from 2016 mainly because of a much smaller pension and OPEB remeasurement loss and favorable tax planning. Revenue rose to $156.8 billion, up about $5 billion, but underlying profitability weakened. Company adjusted pre-tax profit fell $1.9 billion to $8.4 billion, the Automotive segment's pre-tax profit declined $2.2 billion to $7.3 billion on higher commodity costs (mainly steel), adverse currency (especially sterling after Brexit), and negative pricing in China. Automotive operations outside North America posted a loss of $252 million, while North America remained the profit engine at $7.5 billion. Balance sheet and liquidity are sound. Automotive cash was $26.5 billion and Automotive liquidity was $37.4 billion against a target of about $30 billion. Ford Credit's managed leverage was 8.0:1, within its 8:1 to 9:1 target, and its pre-tax profit was $2.3 billion. Total equity rose to $34.9 billion. Pension underfunding narrowed to $6.6 billion, and the company's global funded plans are now fully funded in aggregate. Unresolved risks include Brazilian tax assessments, a Customs dispute over Transit Connect duties, and the EPA and CARB regulatory outlook for 2022-2025 fuel economy and GHG standards. For 2018, management guided to adjusted EPS of $1.45 to $1.70, flat-to-modestly-higher revenue, lower Automotive profit, a higher Mobility loss from autonomous vehicle investment, and lower Ford Credit profit. Ford also plans to reorganize its reporting into Automotive, Mobility, and Ford Credit segments starting in the first quarter of 2018. Investors should weigh the strong cash position and dividend capacity against margin pressure from commodities, currency, and industry overcapacity.
Feb 8, 2018
2016-A
FORD MOTOR CO Annual Report (Amendment), Year Ended Dec 31, 2016
This excerpt is not Ford Motor Company's consolidated 10-K financial statements. It consists of the Item 15 exhibit index and Exhibit 99, the audited financial statements of Changan Ford Automobile Corporation Limited (Changan Ford), a China joint venture that Ford accounts for under the equity method. Those statements are prepared in RMB and cover fiscal 2014 to 2016. Ford's own 2016 results, including its consolidated revenue, net income, and balance sheet, are not in this text and would need to be sourced from the full filing. Changan Ford grew in 2016. Total revenues rose about 7.7% to RMB 118.4 billion, and net income attributable to the company rose about 4.0% to RMB 18.1 billion. Cost of sales rose faster than revenue, to RMB 86.5 billion, and government grant income increased to RMB 3.7 billion from RMB 2.4 billion. Grants equaled roughly 17% of pre-tax income of RMB 21.6 billion, and a 15% preferential tax rate reduced 2016 tax expense by about RMB 1.8 billion. Investors should treat these subsidies as a meaningful, policy-dependent component of earnings. Cash generation and capital allocation were strong. Operating cash flow was about RMB 24.4 billion, capital expenditure fell to RMB 4.5 billion from RMB 6.4 billion, and dividends paid were RMB 17.7 billion, roughly 98% of net income. Cash ended the year at RMB 15.1 billion, but inventory writedowns and warranty liabilities rose, with warranty liabilities up to RMB 1.57 billion from RMB 1.32 billion. Ford's economic exposure is 50% indirectly through its FAPAH (35%) and Ford China (15%) holdings.
Mar 29, 2017
2016
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2016
Ford Motor Company's 2016 Form 10-K (filed February 9, 2017) shows a company in a year of solid but declining profitability. Revenue rose about 1.5% to a record $151.8 billion, but pre-tax income fell to $6.8 billion from $10.3 billion, and net income attributable to Ford dropped to $4.6 billion ($1.15 diluted EPS) from $7.4 billion ($1.84). The decline was driven mainly by a $3.0 billion fourth-quarter pension and OPEB remeasurement loss, higher warranty costs (including about $600 million for a door latch recall), and weaker Financial Services results. Adjusted pre-tax profit was $10.4 billion, a modest decline from 2015, and the Automotive segment still earned a strong $9.4 billion pre-tax profit at a 6.7% operating margin. The balance sheet and liquidity position remain strong. Automotive cash was $27.5 billion and total Automotive liquidity was $38.3 billion, both above company targets. Ford Credit's liquidity was $27 billion, and the company received upgrades from all four major rating agencies in the first half of 2016. Dividends were $0.85 per share for the year, including a $0.40 special payment in the first quarter. Management guides to another good year in 2017, with lower profits expected in North America and Europe, improvement in South America, the Middle East & Africa and Asia Pacific, and a lower Ford Credit pre-tax profit of about $1.5 billion because of expected declines in used vehicle values. Key risks for investors include industry excess capacity (about 32 million units globally) that pressures pricing, tightening fuel economy and zero-emission vehicle rules, large pension underfunding of $8.9 billion, and the ongoing cost of product recalls. Ford is also investing heavily in electrification, autonomy and mobility, which is expected to weigh on near-term margins.
Feb 9, 2017
2015-A
FORD MOTOR CO Annual Report (Amendment), Year Ended Dec 31, 2015
This Form 10-K/A (Amendment No. 1) does not contain Ford Motor Company's own 2015 financial statements. It was filed to add the audited financial statements of Changan Ford Automobile Corporation Limited (CAF), Ford's 50%-owned, equity-method joint venture in China, as required by SEC Rule 3-09. CAF met the significant-subsidiary test for 2014 but not for 2015 or 2013, so these statements are included as Exhibit 99. Ford's consolidated results, the risk factors and the rest of the original 10-K are in the February 11, 2016 Original 10-K, not in this amendment. All CAF figures below are in Renminbi (RMB), not U.S. dollars. CAF's 2015 results were strong. Total revenues rose about 9.7% to RMB 109.98 billion, operating income rose about 16% to RMB 18.07 billion, and net income attributable to CAF rose about 21% to RMB 17.38 billion. Government grant income more than doubled to RMB 2.42 billion, and it was a meaningful contributor to the earnings increase. CAF's effective tax rate was reduced by a 15% preferential rate for western China, which lowered tax expense by about RMB 1.95 billion versus the 25% statutory rate. Operating cash flow was RMB 24.65 billion, capital expenditures were RMB 6.41 billion, and CAF paid RMB 15.86 billion in dividends, roughly 91% of net income. The balance sheet expanded. Total assets increased about 22% to RMB 50.47 billion, with cash of RMB 12.87 billion. Accounts payable rose about 56% to RMB 16.94 billion, and inventories rose about 37% to RMB 7.69 billion. Those working-capital increases supported operating cash flow in 2015 but would need to be monitored in future periods. For Ford investors, CAF is a material contributor to the earnings from Ford's China equity-method investments, so its results offer a useful read on the Chinese joint-venture business.
Mar 30, 2016
2015
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2015
Ford Motor Company's 2015 Form 10-K (filed February 11, 2016) reports a record full-year Company pre-tax profit of $10.8 billion excluding special items, and net income attributable to Ford of $7.4 billion, or $1.84 diluted EPS, up from $0.31 in 2014. Revenue rose about 4% to $149.6 billion. The Automotive sector's operating margin reached 6.8%, the highest since at least the 1990s, with Automotive pre-tax profit (excluding special items) of $8.8 billion, up 60%. Wholesale volume grew 5% to about 6.6 million units, and North America, Asia Pacific and Europe all improved, while South America remained loss-making. Ford Credit delivered $2.1 billion of pre-tax profit, and the company ended the year with $23.6 billion of Automotive cash and $34.5 billion of Automotive liquidity. The filing also highlights several risks and watch items for investors. Management expects 2016 Company pre-tax profit to be equal to or higher than 2015, but warns that South America losses will grow and that North America margins may be pressured by the 2022-2025 fuel economy and GHG standards. Automotive debt is modest at $12.8 billion, and net cash is $10.8 billion, while Financial Services debt is $120 billion, supporting Ford Credit's managed leverage of 9.5:1. Pension underfunding of $8.2 billion remains a liability, and Ford changed its pension accounting so remeasurement gains and losses now flow through net income in the fourth quarter, which will create earnings volatility. Legal exposures include Brazilian tax assessments, an EPA investigation into air permits, and indirect tax and customs matters with a reasonably possible loss of up to about $2.3 billion. Overall, the filing portrays a financially strong year driven by North American benchmark profitability and a turnaround in Europe and Asia Pacific, with the main investor debates centering on the sustainability of North American profits in a period of excess global capacity, low fuel prices, and tightening regulation.
Feb 11, 2016
2014-A
FORD MOTOR CO Annual Report (Amendment), Year Ended Dec 31, 2014
The filing provided is an exhibit index plus Exhibit 99, the audited 2014 financial statements of Changan Ford Automobile Corporation Limited (CAF), a Chinese joint venture. It does not contain Ford Motor Company's own consolidated financial statements, MD&A, or risk factors, so the figures below describe the JV, not Ford. Ford's economic interest is 50% (35% through FAPAH and 15% through Ford China), with Changan Automobile holding the other 50%. CAF is accounted for under the equity method, so its results matter to Ford mainly through its share of earnings and dividends. All figures are in RMB. CAF's 2014 performance was strong. Total revenues rose about 26% to RMB 100.3 billion, operating income rose about 67% to RMB 15.5 billion (a 15.5% operating margin), and net income attributable to the company rose about 75% to RMB 14.3 billion. Government grants added RMB 971 million, and a preferential 15% tax rate (versus the 25% statutory rate) cut the tax bill by about RMB 1.9 billion. Operating cash flow was RMB 20.5 billion, against RMB 7.2 billion of capital expenditure. The balance sheet shows some pressure. Shareholders' equity fell to RMB 9.4 billion from RMB 10.4 billion because dividends of RMB 15.4 billion exceeded 2014 net income. Warranty liabilities nearly doubled to RMB 1.8 billion, and cash fell to RMB 10.5 billion from RMB 12.3 billion. Accounts payable of RMB 12.9 billion remain the largest liability, reflecting heavy reliance on supplier financing.
Mar 30, 2015
2014
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2014
Ford Motor Company's 2014 Form 10-K (filed February 13, 2015) shows a year of lower profitability driven by the Automotive sector. Total revenue was $144.1 billion, down from $146.9 billion, and net income attributable to Ford fell to $3.2 billion ($0.80 diluted EPS) from $7.2 billion ($1.77) in 2013. Pre-tax profit excluding special items was $6.3 billion versus $8.6 billion, and special items of $1.9 billion (including an $800 million Venezuela accounting charge and a $329 million Ford Sollers impairment) further reduced reported results. Automotive operating margin fell to 3.9% from 5.4%, with North America still the profit engine ($6.9 billion pre-tax) while South America lost $1.2 billion and Europe lost $1.1 billion. Balance sheet and liquidity remain solid. Automotive gross cash was $21.7 billion and total Automotive liquidity was $32.4 billion, including a $12.2 billion revolving credit facility. Automotive net cash was $7.9 billion, and the company repurchased about $2 billion of stock and paid $2 billion in dividends. Total debt rose to $119.2 billion, almost entirely at Ford Credit ($105.3 billion), whose managed leverage was 8.7:1. Ford's pension plans were underfunded by $9 billion, a figure management expects to close by 2016. Regulatory exposure is significant: the CAFE and ZEV rules, the 2025 fuel-economy targets, and possible Brazilian tax assessments all pose risk. Management guided to a strong 2015 rebound, with total Company pre-tax profit (excluding special items) of $8.5 to $9.5 billion, higher Automotive revenue and margins, and a North America operating margin of 8% to 9%. Investors should weigh that guidance against the cost of 15 to 24 new product launches, the continued losses in South America and Europe, and the back-half-weighted 2015 calendarization.
Feb 13, 2015
2013
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2013
Ford Motor Company's 2013 Form 10-K (filed February 18, 2014) shows a year of solid recovery and strong profitability for the automaker, with total revenues of $146.9 billion (up 10% from $133.6 billion in 2012) and net income attributable to Ford of $7.2 billion, or $1.76 per diluted share, compared with $5.7 billion or $1.42 in 2012. Total Company pre-tax profit excluding special items was $8.6 billion, which management described as among the best in the company's history. The Automotive sector drove the improvement, with wholesale volumes up 12%, an operating margin of 5.4%, and North America delivering record-level results with pre-tax profit of $8.8 billion. Europe continued to lose money, though its pre-tax loss narrowed to $1.6 billion, and South America was roughly breakeven. The balance sheet strengthened meaningfully. Total equity attributable to Ford rose to $26.4 billion from $15.9 billion, helped by a $4.6 billion favorable swing in accumulated other comprehensive income tied to pension and OPEB remeasurement. Worldwide pension underfunding fell to $9 billion from $18.7 billion, and Automotive gross cash ended at $24.8 billion with total Automotive liquidity of $36.2 billion. Automotive debt rose to $15.7 billion, but management reiterated its target of reducing it to about $10 billion by mid-decade. The dividend was doubled to $0.10 per quarter during 2013 and was raised a further 25% to $0.125 for the first quarter of 2014. Looking forward, management guided to 2014 total Company pre-tax profit of $7 to $8 billion, below 2013, as it launches 23 all-new or significantly refreshed vehicles, including 16 in North America. Automotive operating margin is expected to be lower and operating-related cash flow substantially lower, reflecting higher capital spending of about $7.5 billion annually. Key risks flagged in the filing include excess global capacity (about 23 million units), tighter fuel economy and emissions rules, Brazilian tax disputes, a pending U.S. Customs ruling on Transit Connect duties, and a large product-liability-adjacent apartheid lawsuit, as well as currency volatility in emerging markets such as Venezuela and Argentina.
Feb 18, 2014
2012
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2012
Ford Motor Company's 2012 Form 10-K (filed February 19, 2013) shows a company that remained solidly profitable but with a sharply lower bottom line than 2011. Total revenue was $134.3 billion (down from $136.3 billion), and pre-tax profit was $7.7 billion versus $8.7 billion. Net income attributable to Ford fell to $5.7 billion from $20.2 billion, a decline driven mainly by the non-repeat of the roughly $12.4 billion tax valuation allowance release recorded in 2011. Excluding special items, Automotive pre-tax profit was $6.3 billion, flat year over year, and the Automotive operating margin was 5.3%. Ford North America was the clear profit engine, while Ford Europe posted a substantial loss and Ford South America and Asia Pacific Africa were roughly breakeven or small losses. The balance sheet and liquidity picture improved. Automotive gross cash rose to $24.3 billion and total Automotive liquidity to $34.5 billion, and Automotive net cash was about $10 billion. Shareholders' equity attributable to Ford reached $15.9 billion, and the company paid its first meaningful dividends ($0.15 per share declared for 2012). Ford regained investment-grade ratings at some agencies, and in January 2013 it issued $2 billion of 4.75% notes due 2043. Key risks include a large unfunded pension deficit of about $18.7 billion worldwide, a $2 billion-plus European restructuring that management expects to produce a roughly $2 billion pre-tax loss in Europe in 2013, and a tightening regulatory environment for fuel economy and zero-emission vehicles. Looking ahead, management guided to total Company pre-tax profit of about $8 billion in 2013, with Ford North America's margin near 10%, South America about breakeven, and Asia Pacific Africa about breakeven. Automotive operating-related cash flow is expected to rise to a higher level than 2012's $3.4 billion, even with planned capital spending of about $7 billion. Investors should weigh the strong North American turnaround and healthier balance sheet against the European losses, pension obligations, and the cyclical and structural pressures in mature markets.
Feb 19, 2013
2011
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2011
Ford Motor Company's 2011 Form 10-K shows a sharp financial turnaround. Net income attributable to Ford was $20.2 billion, or $4.94 per diluted share, versus $6.6 billion ($1.66) in 2010. Most of that gain came from a $12.4 billion tax benefit from releasing almost all of the valuation allowance against U.S., Canadian and Spanish deferred tax assets. Total pre-tax income was $8.7 billion, and pre-tax operating profit excluding special items was $8.8 billion. Revenue rose to $136.3 billion from $129.0 billion, and Automotive sales reached $128.2 billion. The operating story is strong but uneven. Ford North America earned $6.2 billion of pre-tax operating profit and carried the company. Ford South America earned $861 million, Ford Europe was roughly breakeven with a $27 million loss, and Ford Asia Pacific Africa lost $92 million, partly due to the Japan and Thailand natural disasters. Automotive operating margin fell 0.7 points to 5.4%, with commodity costs a major headwind. Automotive operating-related cash flow was $5.6 billion. Automotive net cash improved to $9.8 billion from $1.4 billion as debt fell to $13.1 billion. Ford Credit's pre-tax profit declined to $2.4 billion, and management guided to lower Ford Credit earnings in 2012. Key risks include a pension deficit of $15.4 billion, an unresolved Medium/Heavy Truck class action with a judgment of roughly $2 billion (on appeal), stringent CARB LEV III and ZEV proposals, and European economic weakness. Ford's credit ratings remain below investment grade at all four agencies, though several carry positive outlooks. The company guided to 2012 Automotive pre-tax operating profit and operating margin improvement, with total company pre-tax operating profit about equal to 2011.
Feb 21, 2012
2010
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2010
Ford Motor Company's 2010 Form 10-K shows a company in recovery mode. Net income attributable to Ford was $6.6 billion ($1.66 diluted EPS) versus $2.7 billion in 2009, on Automotive sector sales of $119.3 billion and Automotive pre-tax income of $4.1 billion (including $1.2 billion of special-item charges). Total company pre-tax income was $7.1 billion. Ford North America drove the improvement, with pre-tax income of $5.4 billion on higher volume, net pricing, and market share gains (U.S. combined share rose to 16.4%). The balance sheet improved materially. Automotive debt fell $14.5 billion to $19.1 billion, and Automotive gross cash ($20.5 billion) exceeded Automotive debt, producing a $1.4 billion net cash position versus $8.7 billion of net debt a year earlier. Stockholders' equity moved from a $7.8 billion deficit to a $642 million deficit, largely from earnings and conversion of convertible notes into about 274 million shares. Ford Credit was also profitable ($3.1 billion pre-tax), though its earnings were boosted by lower credit losses and lease depreciation that management expects to partly reverse in 2011. Key risks remain. Ford's credit ratings are still below investment grade (upgraded in January and February 2011), the company carries a $15.7 billion deferred tax valuation allowance, U.S. and worldwide pension plans were underfunded by $6.7 billion and $11.5 billion, and future CAFE and GHG rules could force product restrictions. Management guided to higher 2011 pre-tax operating profit and Automotive operating-related cash flow, while noting commodity and structural cost pressures.
Feb 28, 2011
2009
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2009
Ford Motor Company's 2009 Form 10-K shows a company in transition after a severe downturn. Net income attributable to Ford was $2.7 billion, or $0.86 per diluted share, compared with a net loss of $14.8 billion in 2008. Total company revenue fell to $118.3 billion from $145.1 billion, reflecting lower industry volumes in the U.S. and Europe. The swing to profit was driven mainly by the non-recurrence of the $5.3 billion 2008 North America impairment, $5.8 billion of favorable structural cost changes, $5.5 billion of favorable net pricing, and $4.7 billion of net gains from debt reduction. Pre-tax income before special items was still negative for the Automotive sector, which underscores that the profit was largely driven by one-time items. The balance sheet remains a central concern. Automotive debt stood at $34.4 billion at year-end, and total equity was still a deficit of $6.5 billion (attributable to Ford, a deficit of $7.8 billion). Management reduced Automotive debt by $10.1 billion principal through tender offers, debt-for-equity exchanges, and roughly 468 million shares issued, and raised about $2.2 billion of new equity. It also secured a $5.9 billion DOE loan facility and extended its secured revolver. The UAW VEBA obligation of about $13.6 billion was settled on December 31, 2009, through notes, warrants, and assets transferred to the trust. Liquidity was $25.5 billion of Automotive gross cash at year-end. The company suspended its dividend, and a covenant restricts dividend payments. Looking ahead, management plans for 2010 industry volumes of 11.5 to 12.5 million units in the U.S. and 13.5 to 14.5 million in Europe. It expects Automotive pre-tax profit excluding special items for full-year 2010 and full-year 2011, with positive operating-related cash flow. Key risks include persistent excess global capacity, pricing pressure, labor constraints from UAW and CAW contracts, dependence on Ford Credit funding, regulatory costs for emissions and fuel economy, and a pending sale of Volvo expected to close in the second quarter of 2010.
Feb 25, 2010
2008
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2008
Ford Motor Company's 2008 Form 10-K, filed February 26, 2009, shows a company in deep crisis. Total Company net loss was $14.7 billion ($6.46 per share), against a $2.7 billion loss in 2007. Sales and revenues fell to $146.3 billion from $172.5 billion. Automotive gross cash fell by $21.2 billion to $13.4 billion, and Automotive operating-related cash flow was negative $19.5 billion. Stockholders' equity turned negative at $(17.3) billion, down about $22.7 billion in one year. Ford took a $5.3 billion impairment on North American fixed assets and a $2.1 billion impairment on Ford Credit operating leases, both tied to the collapse in used truck and SUV auction values and the shift in consumer preference toward smaller vehicles. Liquidity is the central investor concern. In February 2009 Ford borrowed $10.1 billion under its $11.5 billion secured revolver, and management states it does not expect to need a government bridge loan. The company's own planning case assumes 2009 U.S. industry sales of 10.5 to 12.5 million units, and management says the company can absorb a 20% U.S. and 10% European downside without impairing funding. Ford also cites $14 to $17 billion of announced Automotive cash improvement actions for 2009 to 2010, a tentative UAW agreement, and pending DOE and EIB loan applications of roughly $2 billion expected in 2009. Credit ratings were cut to CCC-range by all four NRSROs, and Ford Credit's managed leverage is 9.9 to 1. The auditor included an emphasis paragraph on the economic conditions but did not qualify its opinion. Management concluded there is no substantial doubt about going-concern status. The filing also highlights structural issues. Market share in the U.S. fell to 14.2% in 2008 from 18.0% in 2004. Ford is restructuring North America by closing plants, cutting dealers from about 4,400 to 3,800, and shifting capacity to small cars. It is also reviewing strategic options for Volvo, including a possible sale. The company sold Jaguar Land Rover in June 2008 and reduced its Mazda stake to 13.78%. Regulatory risk is significant as well, particularly from California and state greenhouse-gas standards and tougher federal fuel economy rules.
Feb 26, 2009
2007
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2007
Ford Motor Company's 2007 Form 10-K reports a net loss of $2.7 billion, or $1.38 per share, compared with a loss of $12.6 billion ($6.72 per share) in 2006. Total sales and revenues rose to $172.5 billion from $160.1 billion, driven by higher Automotive pricing, favorable mix, and currency effects, although wholesale volumes fell about 1% to 6.55 million units. The improvement was largely due to lower restructuring and pension charges, a $1.3 billion retiree health care curtailment gain, and smaller impairments, partly offset by a $2.4 billion Volvo goodwill impairment. The Automotive sector remained loss-making at a $4.97 billion pre-tax loss, while Financial Services (Ford Credit) earned $1.2 billion pre-tax, down from $2.0 billion. The balance sheet remains stressed. Stockholders' equity recovered to $5.6 billion from a deficit of $3.5 billion, helped by debt-to-equity conversions and pension/OPEB accounting gains. Automotive gross cash was $34.6 billion and net cash was $7.9 billion, supported by $13.1 billion of committed credit facilities and about $46.5 billion of total Automotive liquidity. Management expects 2008 Automotive operating-related cash flow to be negative, a full-year 2008 pre-tax loss that is smaller than 2007, and a return to North American and total Automotive profitability in 2009. Credit ratings are deep sub-investment grade (S&P B, Moody's B3), and the company paid no dividends in 2007 and is restricted from paying them under its secured credit agreement. Key risks include continued market share erosion (U.S. combined share fell to 15.6% from 20.5% in 2003), tougher U.S. and California fuel economy and greenhouse gas rules, a pending $2 billion-plus diesel engine countersuit, the UAW retiree health care MOU that depends on court approval, and Ford Credit's reliance on securitization markets that became more costly after August 2007.
Feb 27, 2008
2006
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2006
Ford Motor Company's 2006 Form 10-K (filed February 28, 2007) reports a severe downturn. Total company sales and revenues fell to $160.1 billion from $176.9 billion, and the company posted a net loss of $12.6 billion, or $6.72 per share, versus a $1.4 billion profit in 2005. The loss was driven by the Automotive sector, which recorded a pre-tax loss of $17.0 billion including $11.9 billion of special items such as Jobs Bank benefit charges, pension curtailment losses, and $3.8 billion of impairments on Ford North America and Jaguar Land Rover assets. Stockholders' equity turned negative at $(3.5) billion, down $16.9 billion from 2005. The Financial Services sector remained profitable, with pre-tax income of $2.0 billion, though Ford Credit earnings fell on higher borrowing costs. Liquidity was the main positive. In December 2006 Ford raised $23.5 billion of new capital, including a $4.95 billion convertible note, a $7 billion secured term loan, and an $11.5 billion secured revolver, bringing total automotive liquidity to about $46 billion. Management expects more than $17 billion of cumulative automotive cash outflows through 2009, with more than half in 2007, and projects Ford North America and the Automotive sector to return to profitability in 2009. Credit ratings were cut further in late 2006 and remain in deep speculative-grade territory, with Moody's at Caa1 on senior unsecured debt and S&P at CCC+. Market share continues to decline, with U.S. combined share at 17.1% versus 21.1% in 2002. The company suspended its dividend, and the credit agreement now prohibits common dividends. For investors, the filing describes a company in a multi-year restructuring: roughly 14,000 salaried positions cut, about 89,000 hourly North American employees at year-end, and 16 North American plants to be idled by 2012, with the Way Forward plan targeting about $5 billion in annual cost savings by 2008. Significant risks remain, including a Ford Credit funding squeeze, a labor contract expiring with the UAW in September 2007, a diesel engine supply dispute with International Truck and Engine, and large pension and retiree health obligations.
Feb 28, 2007
2005-A
FORD MOTOR CO Annual Report (Amendment), Year Ended Dec 31, 2005
Ford Motor Company's Form 10-K/A for fiscal 2005, filed November 14, 2006, restates prior results to correct the accounting for interest rate swaps at Ford Credit that did not meet SFAS 133 Paragraph 68's 'assumption of no ineffectiveness.' The restatement reduces 2005 net income to $1.44 billion ($0.77 per diluted share) from $2.02 billion originally reported, and cuts 2004 net income to $3.04 billion from $3.49 billion. Retained earnings and equity are also restated; year-end 2005 stockholders' equity is $13.4 billion. The filing also discloses a material weakness in internal control over derivatives accounting, which Ford states was remediated as of the filing date, and management's prior conclusion that controls were effective was revised to 'not effective' as of December 31, 2005. The underlying operating picture is weak. The Automotive sector posted a pre-tax loss of $3.9 billion in 2005, driven by Ford North America losses, a $1.3 billion Jaguar/Land Rover impairment, and personnel-reduction charges. U.S. combined car and truck market share fell to 18.2% from 22.8% in 2001. Ford Credit remained the main profit engine, with Financial Services pre-tax income of $5.0 billion aided by a $1.1 billion gain on the sale of Hertz. Management guides to an automotive loss in 2006 and the Way Forward plan calls for idling 14 North American plants by 2012. Credit ratings were cut to sub-investment grade (BB-/Ba3 range) in early 2006. For investors, the key issues are the restatement's reduction of reported earnings, the credibility of internal controls, and whether the Way Forward restructuring can stabilize North American share and profitability. Note that this amendment reflects data as of the original March 2006 filing, and later events are not reflected.
Nov 14, 2006
2005
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2005
Ford Motor Company's 2005 10-K report reveals a challenging year marked by a significant decline in net income compared to 2004, primarily driven by losses within the Automotive sector. The company is navigating intense industry competition, excess capacity, and pricing pressures. A key strategic initiative, the "Way Forward" plan, aims to address these issues through cost reductions, capacity adjustments, product differentiation, and clear pricing strategies. While the Financial Services sector, largely driven by Ford Credit, remained profitable, it experienced lower earnings due to increased borrowing costs and reduced receivables. The report highlights significant restructuring efforts, including workforce reductions and plant idling, indicating a focus on improving long-term operational efficiency and profitability amidst a volatile automotive market.
Mar 1, 2006
2004
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2004
Ford Motor Company's 2004 10-K report highlights a year of significant financial recovery and strategic repositioning. The company reported a substantial increase in net income to $3.5 billion, a significant turnaround from the previous year's $495 million. This improvement was driven by a robust recovery in the Automotive sector, which moved from a substantial loss in 2003 to a slight loss in 2004, largely due to improved pricing and cost management, though volume saw a slight decline. The Financial Services sector, primarily Ford Credit, also demonstrated strong performance, with income before taxes increasing significantly, driven by improved credit loss performance and leasing results. Ford continued its focus on profitability over market share, de-emphasizing less profitable fleet sales, particularly to daily rental companies, which contributed to a slight decline in overall market share but aimed to improve long-term profitability. The company also continued its Revitalization Plan, aiming for significant capacity reductions and personnel streamlining. Investments in new technologies such as hybrid powertrains and roll stability control were highlighted as key to future product differentiation. Looking ahead, Ford anticipates continued industry pricing pressures and increased costs related to healthcare and commodities, but remains focused on cost reduction and product innovation.
Mar 10, 2005
2003
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2003
Ford Motor Company's 2003 10-K report details a year of recovery and ongoing restructuring efforts. The company reported a net income of $495 million, a significant improvement from a loss of $980 million in 2002, driven by positive contributions from both the Automotive and Financial Services sectors. The Automotive sector, while still facing challenges like excess capacity and pricing pressure, saw improved operating results primarily due to cost reductions and a more favorable product mix. Ford Credit demonstrated strong performance, with income before taxes increasing substantially due to lower credit loss provisions and favorable market valuations of derivative instruments. The company remains focused on its Revitalization Plan, aiming to introduce new products, reduce capacity and workforce, and cut costs. Despite progress, Ford anticipates a slower rate of profit improvement in 2004 due to the timing of new product introductions and ongoing health care cost increases. Key strategic initiatives include revenue management, cost reduction through shared technologies, and a disciplined approach to fleet sales. The company is also navigating evolving regulatory landscapes related to emissions and fuel economy, and managing significant labor agreements.
Mar 12, 2004
2002
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2002
Ford Motor Company's 2002 Form 10-K shows a company in transition. Total Company net loss was $980 million in 2002 (versus a $5.45 billion loss in 2001), though income from continuing operations improved to $284 million from a $5.35 billion loss. The Automotive sector lost $987 million from continuing operations in 2002, an improvement from $6.16 billion in 2001, driven mainly by the non-recurrence of 2001 impairments and Revitalization Plan charges. The Financial Services sector earned $1.27 billion, up from $806 million, led by Ford Credit ($1.24 billion). Results were weighed down by a $1.0 billion after-tax SFAS 142 goodwill impairment charge, the $708 million Automotive portion of which relates mainly to Kwik-Fit, and by continued U.S. market share erosion, with Ford's combined U.S. car and truck share falling to 21.1% from 22.8%. Worldwide unit sales were 6.97 million, down slightly from 7.01 million. Balance sheet and credit quality are the key investor concerns. Stockholders' equity fell to $5.6 billion from $7.8 billion, mainly because of a $5.3 billion pension-related charge to equity from underfunding, which totaled $15.6 billion worldwide. Ford Credit's net credit losses rose to $2.36 billion on owned receivables, and its owned loss-to-receivables ratio climbed to 1.72% from 1.36%. Automotive gross cash increased to $25.3 billion, helped by $4.9 billion from the 6.5% convertible trust preferred issuance and $2.6 billion in tax refunds. Ratings remained under pressure: Moody's affirmed Ford at Baa1 and S&P at BBB, both with negative outlooks, while Fitch rated Ford BBB+ with a negative outlook. Management's 2003 targets call for a breakeven pre-tax result in the Automotive sector and full-year EPS of about $0.70, and the company faces a UAW contract expiring in September 2003 along with ongoing product liability and class action exposure, including the Firestone matters and the Romo punitive damages case. For investors, the central questions are whether the Revitalization Plan, which targets $7 billion in pre-tax income by mid-decade, can restore Automotive profitability despite share losses, rising health care and pension costs, and labor negotiations, and whether Ford can protect its credit ratings while funding Ford Credit's large balance sheet.
Mar 14, 2003
2001
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2001
Ford Motor Company's 2001 10-K filing reveals a challenging year marked by significant losses, primarily driven by a substantial "Revitalization Plan" impacting North and South American operations. This plan involves considerable workforce reductions, plant capacity adjustments, and a focus on cost reduction, aiming for a $3 billion annual profit improvement by mid-decade. The automotive sector experienced a considerable loss, exacerbated by increased marketing costs and production capacity issues. The financial services sector, while still profitable, saw a decline in net income, largely due to higher provisions for credit losses at Ford Credit, influenced by weakening economic conditions. Despite the financial headwinds, Ford is strategically focusing on product innovation with plans for 20 new or refreshed products annually. The company is also actively divesting non-core assets to generate cash and has implemented measures to improve Ford Credit's risk management and funding strategies. Investors should note the significant one-time charges related to the Revitalization Plan, which are intended to set the stage for future profitability, but highlight the near-term financial strain.
Mar 28, 2002
2000
FORD MOTOR CO Annual Report, Year Ended Dec 31, 2000
Ford Motor Company's 2000 10-K shows a company in transition. Full-year 2000 revenues reached a record $170.1 billion (up $9.4 billion), with 7.42 million vehicles sold, helped by the Land Rover acquisition. Profitability weakened sharply, however: net income fell to $3.47 billion from $7.24 billion in 1999, and income from continuing operations declined to $5.41 billion from $6.50 billion. The Automotive sector earned $3.62 billion, down from $4.99 billion, and was hit by a $1.6 billion European charge (including $1.1 billion asset impairment) and a $2.25 billion after-tax loss on the Visteon spin-off. Excluding unusual items, income from continuing operations would have been about $6.67 billion, which is useful context but should be read with caution given how frequently such items recur. The balance sheet and capital structure changed materially. Stockholders' equity fell to $18.6 billion from $27.6 billion, driven by the $5.7 billion Value Enhancement Plan recapitalization, the Visteon spin-off, share repurchases, and currency translation losses. Automotive debt-to-capitalization rose to 39% from 30%. Automotive net cash fell to $4.4 billion from $10.0 billion. Financial Services grew, with Ford Credit earnings up 22% to $1.54 billion and finance receivables plus operating leases reaching $171.8 billion. Financial Services debt rose to $153.5 billion. Management's 2001 outlook calls for a lower U.S. industry (16.0 to 16.5 million units) and continued cost reduction, with a $1 billion cost target. Investors should also weigh material legal and product-liability exposure. The filing discloses the Firestone/Explorer tire matters, Bronco II rollover claims (about $2.4 billion in specified damages), occupant restraint claims, asbestos claims (about $1.7 billion), and a California TFI module case in which the court found Ford violated state law and could face an adverse judgment as high as $4 billion. Management states it does not expect these matters to have a material effect on any single year's financial statements, but the risk is substantial and unquantified.
Mar 22, 2001
1999
FORD MOTOR CO Annual Report, Year Ended Dec 31, 1999
Ford Motor Company's 10-K for fiscal 1999 shows a company that delivered record-level profitability in North America while struggling elsewhere. Total company net income was $7.2 billion ($5.86 per diluted share), down sharply from $22.1 billion in 1998, which included a one-time, non-cash $15.96 billion gain from the spin-off of The Associates. Revenues rose to $162.6 billion, driven largely by the March 1999 acquisition of Volvo Car. Automotive sector earnings were $5.7 billion, with North American Automotive delivering $6.1 billion (a 6.2% after-tax return on sales), offset by a $452 million loss in South America and a sharp drop in European earnings to $28 million. Financial Services net income rose to $1.5 billion, with Ford Credit up 16% and Hertz at a record. The filing highlights several risks for investors. Ford's U.S. market share fell to 23.9% (from 24.6%) because of capacity constraints on key products, and marketing costs rose to 10.6% of U.S. gross sales. The company faces significant litigation, including a Bronco II rollover exposure of about $4.1 billion in specified damages, a TFI module class action in California that could reach $4 billion, and a federal grand jury investigation over the MFA engine control strategy. Regulatory pressures from tighter emissions standards, CAFE requirements, and possible CO2 regulation could also weigh on sales and profits. Management plans to take Visteon, its $19.4 billion components unit, toward independence in 2000. The balance sheet remains strong, with $23.6 billion of Automotive cash and marketable securities and stockholders' equity of $27.5 billion, up $4.1 billion. However, Financial Services debt rose $17.6 billion to $139.9 billion. Management's 2000 outlook calls for record North American earnings, a $1 billion reduction in total costs, and capital spending of $9 billion.
Mar 16, 2000
1998
FORD MOTOR CO Annual Report, Year Ended Dec 31, 1998
Ford Motor Company's 1998 annual report (10-K filed March 17, 1999) shows a year dominated by a one-time, non-cash event. Net income reached a record $22.07 billion, or $17.76 per diluted share, but that figure includes a $15.96 billion gain from the spin-off of The Associates. Excluding The Associates-related amounts, net income was $5.94 billion, or $4.72 per diluted share, compared with $6.09 billion ($4.94) in 1997. Revenue fell to $144.4 billion from $153.6 billion, and the company sold 6.82 million vehicles, down about 1.8% from 6.95 million in 1997. Investors should look at the underlying operating trend rather than the headline earnings figure. The Automotive sector earned $4.75 billion, roughly flat with 1997, but mix was uneven. North America was strong, with after-tax return on sales of 5.3% and North American earnings of $4.61 billion, while Europe (market share down 1.1 points to 10.3%) and South America (a $226 million loss) weakened. Q4 1998 also carried $631 million of one-time charges, including early retirement programs, a Kia write-off, and the Batavia transmission plant transfer. Management's 1999 targets include a North American after-tax return above 5%, a $1 billion reduction in total costs, and capital spending of $8.5 billion. The company also agreed to acquire Volvo's passenger car business for $6.45 billion, pending regulatory approval. Risk factors are substantial. Ford faces large product-liability exposure, including Bronco II and occupant-restraint claims totaling about $2.8 billion and asbestos claims of about $2.1 billion. The ignition-switch and paint class actions are also pending, along with a California TFI module case in which plaintiffs' claimed damages could exceed $4 billion. The UAW contract expires in September 1999, creating work-stoppage risk. Regulatory pressure from CAFE, emissions, and air-bag rules could also affect product mix and costs. Financial Services earnings were $17.3 billion including the spin-off gain, but excluding The Associates the sector earned $1.19 billion, down from $1.37 billion, mainly due to lower residual values at Ford Credit.
Mar 17, 1999
1994
FORD MOTOR CO Annual Report, Year Ended Dec 31, 1994
Ford Motor Company's 1994 results marked a sharp recovery, with record worldwide net income of $5.308 billion ($4.97 per share, or $4.44 fully diluted) on sales and revenues of $128.4 billion, up 18% from 1993. The Automotive segment earned $3.824 billion on sales of $107.1 billion, versus $940 million in 1993, driven mainly by higher U.S. industry volume, improved margins, and a strong turnaround in Europe. Factory unit sales rose 11% to 6.639 million vehicles. Financial Services earned $1.484 billion, down $105 million, but that decline reflects a $440 million after-tax charge tied to the disposition of First Nationwide Bank; excluding that charge, Financial Services results were record-level, led by Ford Credit, The Associates and USL Capital. The filing also highlights a weakening U.S. share position and several risk factors. Ford's U.S. car share fell to 21.8% and its combined U.S. car-and-truck share slipped to 25.2%, while Japanese transplants are expanding U.S. production. Management flagged the unfavorable expected impact of the Mexican peso devaluation, the planned dissolution of the Autolatina joint venture with Volkswagen by year-end 1995, and pending regulatory issues including California LEV standards, CAFE increases, and EITF revenue-recognition guidance that could defer substantial revenue. Litigation exposure is significant, including roughly $1 billion in restraint-system claims and $911 million in Bronco II rollover claims. Balance-sheet strength improved markedly: stockholders' equity rose to $21.7 billion from $15.6 billion, and Automotive cash and marketable securities reached $12.1 billion while Automotive debt fell to $7.3 billion (25% of total capitalization, down from 34%). Ford's debt is rated "a1" by Moody's and "A+" by S&P, and the company paid $0.91 per share in dividends for the year.
Mar 16, 1995
1993
FORD MOTOR CO Annual Report, Year Ended Dec 31, 1993
Ford Motor Company's 1993 Form 10-K shows a sharp turnaround from 1992. Worldwide net income rose to $2,529 million, or $4.55 per share, compared with a loss of $7,385 million (-$15.61 per share) in 1992, which was driven by a one-time $6,883 million accounting charge for postretirement health care and income taxes. Excluding that charge, the 1992 loss was $502 million. Sales and revenues reached $108.5 billion, up 8%, and factory unit sales of cars and trucks rose 3% to 5.96 million. The Financial Services segment was the standout performer, with record net income of $1,589 million, up 54%, while Automotive returned to profit at $940 million after a 1992 loss of $1,534 million (excluding accounting changes). U.S. Automotive earned $1,482 million, aided by a 22.3% U.S. car share and 30.5% U.S. truck share, both improvements over 1992. The balance sheet remained solid. Automotive cash and marketable securities totaled $9.8 billion, and Automotive debt fell to $8.0 billion, or 34% of total capitalization. Stockholders' equity rose to $15.6 billion. Management guided to continued improvement in 1994, citing cost reductions, new products such as the Windstar, Aspire, and Contour, and expected U.S. industry sales of about 15 million units. Key risks include a weak European market (industry car sales down 16% in 1993), tougher emissions and fuel economy rules, large product-liability and litigation exposures, and an investigation into strategic options for the troubled savings-and-loan subsidiary First Nationwide, which lost $55 million in 1993. For investors, the filing shows a company that has recovered strongly in North America and in Financial Services, while Europe remains a drag. The cash dividend was held at $1.60 per share, and the Hertz stake was raised from 49% to 54%, which will bring Hertz into consolidation.
Mar 21, 1994