Summary
Ford Motor Company's 2019 10-K filing reveals a challenging year, marked by a significant net loss attributable to special charges, primarily related to its Global Redesign initiative and pension/OPEB remeasurement. While total revenue saw a slight decline, the company's adjusted EBIT also decreased, reflecting higher investments in its Mobility segment and lower Automotive EBIT. The Automotive segment experienced a dip in wholesale units and market share across most regions, with North America's EBIT being particularly impacted by restructuring costs and higher warranty expenses. However, the Ford Credit segment demonstrated resilience, with an increase in Earnings Before Taxes (EBT) driven by favorable lease residual performance and credit loss experience. The company maintained a substantial liquidity position, indicating a focus on financial stability amidst ongoing strategic transformations. Looking ahead, Ford outlined its 2020 guidance, anticipating a modest growth in the Automotive segment, partially offset by lower contributions from Ford Credit. Significant charges are still expected from the Global Redesign. The company continues to navigate a complex automotive landscape characterized by excess capacity, intense competition, and evolving regulatory demands, particularly concerning emissions and fuel economy. Strategic priorities include investing in electrification and mobility solutions, while managing operational fitness and cost structures.
Financial Highlights
53 data points| Revenue | $155.90B |
| Cost of Revenue | $134.69B |
| Gross Profit | $21.21B |
| R&D Expenses | $7.40B |
| SG&A Expenses | $11.16B |
| Operating Expenses | $155.33B |
| Operating Income | $574.00M |
| Interest Expense | $5.41B |
| Net Income | $47.00M |
| EPS (Basic) | $0.01 |
| EPS (Diluted) | $0.01 |
| Shares Outstanding (Basic) | 3.97B |
| Shares Outstanding (Diluted) | 4.00B |
Key Highlights
- 1Ford Motor Company reported a net income attributable to Ford of $47 million for 2019, a significant decrease from $3,677 million in 2018, largely due to $6 billion in special item charges. These charges were primarily related to the Global Redesign initiative and pension/OPEB remeasurement.
- 2Total revenue for 2019 was $155.9 billion, a 3% decrease from $160.3 billion in 2018. Company Adjusted EBIT also decreased by 6% to $6.4 billion.
- 3The Automotive segment's EBIT declined by 9% to $4.9 billion, impacted by a 10% decrease in wholesale units and higher costs, despite favorable net pricing and mix in some regions.
- 4North America, Ford's largest market, saw a 13% decrease in EBIT, primarily due to UAW contract bonuses, higher warranty expenses, and lower wholesale volumes.
- 5The Ford Credit segment showed improved performance, with EBT increasing by 14% to $3.0 billion, driven by favorable lease residual, credit loss, and derivatives performance.
- 6The company maintained a strong liquidity position, with $22.3 billion in Company cash and $35.4 billion in total Company liquidity at the end of 2019.
- 7Ford Credit's managed leverage was 8.9:1, within its target range of 8:1 to 9:1, indicating a stable financial footing for its financing arm.