10-QPeriod: Q1 FY2009

FORD MOTOR CO Quarterly Report for Q1 Ended Mar 31, 2009

Filed May 8, 2009For Securities:FF-PCF-PDF-PB

Summary

Ford Motor Company reported a significant net loss attributable to the company of $1.427 billion ($0.60 per share) for the first quarter of 2009, a substantial decline from the $70 million net income ($0.03 per share) reported in the same quarter of the previous year. This performance was heavily impacted by a severe downturn in the automotive industry, evidenced by a sharp 45% drop in automotive sales to $21.4 billion. The company incurred a $650 million impairment charge related to Volvo, which is now classified as held for sale, further contributing to the quarterly loss. Despite the significant net loss, Ford's Automotive sector reported positive operating-related cash flows of $4.161 billion, an improvement from $1.027 billion in the prior year, indicating some operational cash generation strength amidst challenging market conditions. The company also took steps to improve its liquidity and capital structure, including debt reduction initiatives and modifications to its UAW labor agreements. Ford maintained substantial liquidity with $21.6 billion in cash, cash equivalents, and marketable securities in its Automotive sector at quarter-end, though its total debt remains significant.

Financial Highlights

19 data points
Beta

Revenue

$24.39B

12.2% Gross Margin

Net Income

-$1.43B

-5.9% Net Margin

EPS (Diluted)

$-0.60

Cash & Equivalents

$20.64B

Free Cash Flow

$4.02B

Financial Statements
Beta
Revenue$24.39B
Cost of Revenue$21.41B
Gross Profit$2.98B
SG&A Expenses$3.69B
Operating Expenses$27.43B
Operating Income-$1.43B
Interest Expense$1.92B
Net Income-$1.43B
EPS (Basic)$-0.60
EPS (Diluted)$-0.60

Key Highlights

  • 1Net loss attributable to Ford Motor Company was $1.427 billion ($0.60 per share) in Q1 2009, compared to net income of $70 million ($0.03 per share) in Q1 2008.
  • 2Total sales and revenues decreased by 42.7% to $24.778 billion in Q1 2009 from $43.292 billion in Q1 2008.
  • 3Automotive sales revenue dropped by 45.4% to $21.368 billion in Q1 2009 from $39.117 billion in Q1 2008.
  • 4The company recorded a $650 million pre-tax impairment charge related to Volvo, which has been classified as held for sale.
  • 5Automotive sector reported positive net cash provided by operating activities of $4.161 billion in Q1 2009, an increase from $1.027 billion in Q1 2008.
  • 6Total Automotive sector debt remained substantial, with $32.132 billion at March 31, 2009, though the company undertook debt reduction transactions.
  • 7Ford maintained significant liquidity, with $21.6 billion in cash, cash equivalents, and marketable securities in its Automotive sector as of March 31, 2009.

Frequently Asked Questions

Ford reported a net loss attributable to the company of $1.427 billion, or $0.60 per share, in the first quarter of 2009. This is a significant decrease compared to the net income of $70 million, or $0.03 per share, reported in the first quarter of 2008.

Total sales and revenues decreased by 42.7% to $24.778 billion in the first quarter of 2009, down from $43.292 billion in the same period of 2008. Automotive sales alone saw a 45.4% decline.

The significant net loss was primarily driven by a substantial decline in automotive sales volume and mix (unfavorable by $3.5 billion), a $650 million held-for-sale impairment charge for Volvo, and the non-recurrence of certain favorable market adjustments. These were partially offset by a gain on debt restructuring ($1.1 billion) and favorable cost changes.

Ford's Automotive sector maintained significant liquidity with $21.6 billion in cash, cash equivalents, and marketable securities as of March 31, 2009. The company also reported positive operating-related cash flows of $4.161 billion for the quarter, showing some operational cash generation. Ford has been actively engaged in debt reduction transactions and has secured a $10.1 billion revolving credit facility to bolster its liquidity.