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| 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.