10-KPeriod: FY2013

FORD MOTOR CO Annual Report, Year Ended Dec 31, 2013

Filed February 18, 2014For Securities:FF-PCF-PDF-PB

Summary

Ford Motor Company's 2013 10-K filing indicates a year of robust performance, marked by a significant increase in net income attributable to the company, reaching $7.2 billion. This improvement was largely driven by the Automotive sector, which saw record profits in North America and Asia Pacific Africa, contributing to a strong overall financial picture. The company is actively executing its 'One Ford' plan, focusing on product development, global platform consolidation, and cost restructuring. Despite facing ongoing competitive pressures and global economic uncertainties, Ford demonstrated progress in strengthening its balance sheet and managing operational costs. The Financial Services sector, primarily through Ford Credit, also contributed positively, though it experienced some normalization in credit losses and residual values. The company's liquidity remains strong, with significant cash reserves and available credit lines. Ford is investing heavily in new products and technologies, aiming for a refreshed product portfolio by 2016 and continuing its commitment to fuel efficiency and safety innovations.

Financial Statements
Beta
Revenue$146.92B
Cost of Revenue$120.19B
Gross Profit$26.73B
R&D Expenses$6.20B
SG&A Expenses$10.85B
Operating Expenses$134.11B
Interest Expense$3.69B
Net Income$11.95B
EPS (Basic)$3.04
EPS (Diluted)$2.94
Shares Outstanding (Basic)3.94B
Shares Outstanding (Diluted)4.09B

Key Highlights

  • 1Ford reported a net income attributable to the company of $7.2 billion for 2013, a substantial increase from the previous year.
  • 2The Automotive sector achieved record profits in North America and Asia Pacific Africa, reflecting strong operational execution and market performance.
  • 3The company is progressing with its 'One Ford' plan, including consolidating global vehicle platforms and investing in new product development, with an aggressive launch schedule planned for 2014.
  • 4Ford maintained strong liquidity with approximately $24.8 billion in Automotive gross cash and $36.2 billion in total Automotive liquidity at year-end 2013.
  • 5Ford Credit's financial services arm saw an improvement in pre-tax profit, though it experienced higher credit losses and a decline in residual values compared to the previous year.
  • 6The company is focused on cost management and restructuring, particularly in Europe, where it is working to reduce losses and achieve profitability.
  • 7Significant investments are being made in research and development, with $6.4 billion spent in 2013 on improving vehicle performance, safety, and fuel efficiency.

Frequently Asked Questions

Ford's strong financial performance in 2013 was primarily driven by improved profitability in its Automotive sector, particularly in North America and Asia Pacific Africa. Higher wholesale volumes, favorable market factors, and effective cost management contributed to a significant increase in net income.

Ford is implementing a transformation plan in Europe to reduce losses and improve profitability. This includes restructuring operations, closing facilities, and focusing on more competitive product offerings. The company expects to achieve profitability in Europe by 2015.

Ford is aggressively accelerating its new product development, with plans to launch 23 all-new or refreshed vehicles globally in 2014. The company is investing heavily in technologies related to fuel efficiency (e.g., EcoBoost engines, electrified vehicles), safety, and smart connectivity (e.g., SYNC system).

Ford Credit performed well in 2013, with an increase in pre-tax profit, driven by higher volumes, particularly in North America. However, it experienced higher credit losses and unfavorable residual performance due to lower auction values. Key risks for Ford Credit include prolonged disruptions in debt and securitization markets, market volatility, and new or increased regulatory requirements.