Summary
Ford Motor Company reported a significant net loss of $14.7 billion for the year ended December 31, 2008, largely driven by a dramatic downturn in the global automotive industry due to the economic crisis. The Automotive sector experienced a substantial operating loss, exacerbated by fixed asset impairment charges in North America. Ford Credit, the financial services arm, also incurred a significant loss, primarily due to a substantial impairment charge related to its North American operating lease portfolio driven by declining used vehicle auction values. Despite the challenging economic environment and its impact on sales volumes and market share, Ford is executing a strategic plan focused on restructuring, product development, financing, and teamwork. The company has made progress in reducing its workforce, closing facilities, and divesting non-core assets. The outlook for 2009 remains challenging with projected industry-wide sales declines, but Ford anticipates improved Automotive operating-related cash flow compared to 2008 due to cost reductions and planned capital spending decreases. The company is also leveraging government-sponsored funding programs to maintain liquidity.
Financial Highlights
35 data points| Revenue | $143.58B |
| Cost of Revenue | $126.62B |
| Gross Profit | $16.96B |
| R&D Expenses | $7.10B |
| SG&A Expenses | $21.07B |
| Operating Expenses | $159.30B |
| Operating Income | -$14.78B |
| Interest Expense | $9.74B |
| Net Income | -$14.77B |
| EPS (Basic) | $-6.50 |
| EPS (Diluted) | $-6.50 |
| Shares Outstanding (Basic) | 2.27B |
| Shares Outstanding (Diluted) | 2.27B |
Key Highlights
- 1Ford reported a net loss of $14.7 billion for the year ended December 31, 2008.
- 2The Automotive sector experienced a significant pre-tax loss of $11.8 billion, including $5.3 billion in fixed asset impairment charges in North America.
- 3Ford Credit incurred a pre-tax loss of $2.6 billion, significantly impacted by a $2.1 billion impairment charge on its North American operating lease portfolio due to declining used vehicle auction values.
- 4Global industry sales volume saw a dramatic decline in 2008, with U.S. sales falling to 13.5 million units from 16.5 million in 2007.
- 5Ford's market share in the U.S. declined to 14.2% in 2008 from 14.6% in 2007.
- 6The company has undertaken significant restructuring efforts, including workforce reductions and facility closures, and is continuing to adapt its product offerings to changing consumer preferences for more fuel-efficient vehicles.
- 7Ford ended 2008 with Automotive gross cash of $13.4 billion, down from $34.6 billion at the end of 2007, reflecting the challenging operating environment.