Summary
Ford Motor Company (F) reported a net income attributable to Ford Motor Company of $1.4 billion ($0.35 per share) for the first quarter of 2012. This represents a significant decrease from the $2.6 billion ($0.61 per share) reported in the same period of 2011. The decrease is primarily attributed to higher tax expenses resulting from the release of the tax valuation allowance in the prior year, as well as lower operating results across both the Automotive and Financial Services sectors. Despite the year-over-year decline in net income, the company's liquidity remains strong, with Automotive gross cash at $23.0 billion and available credit lines providing substantial financial flexibility. The Automotive sector saw a decrease in revenue and pre-tax operating profit, largely driven by weaker performance in Ford Europe and Ford Asia Pacific Africa, which offset strong results in Ford North America. Ford North America, in particular, reported its highest quarterly pre-tax operating profit since at least 2000, driven by favorable volume, mix, and pricing. The Financial Services sector, primarily Ford Credit, also experienced a decline in pre-tax operating profit due to fewer lease terminations and lower financing margins. The company reiterates its commitment to its 'One Ford' plan, focusing on profitable growth and strengthening its balance sheet, with an outlook for full-year 2012 pre-tax operating profit to be about equal to 2011.
Financial Highlights
35 data points| Revenue | $32.45B |
| Cost of Revenue | $26.93B |
| Gross Profit | $5.51B |
| SG&A Expenses | $2.88B |
| Operating Expenses | $30.62B |
| Operating Income | $1.40B |
| Interest Expense | $1.01B |
| Net Income | $1.40B |
| EPS (Basic) | $0.37 |
| EPS (Diluted) | $0.35 |
| Shares Outstanding (Basic) | 3.80B |
| Shares Outstanding (Diluted) | 4.05B |
Key Highlights
- 1Net income attributable to Ford Motor Company for Q1 2012 was $1.4 billion, a decrease from $2.6 billion in Q1 2011, primarily due to higher tax expenses and lower operating results.
- 2Automotive sector revenue decreased to $30.5 billion from $31.0 billion, while pre-tax operating profit declined to $1.8 billion from $2.1 billion.
- 3Ford North America achieved its highest quarterly pre-tax operating profit since at least 2000, reaching $2.1 billion.
- 4Ford Europe and Ford Asia Pacific Africa reported pre-tax operating losses of $149 million and $95 million, respectively.
- 5Financial Services sector pre-tax operating profit decreased to $456 million from $706 million, primarily driven by lower performance at Ford Credit.
- 6Automotive gross cash remained strong at $23.0 billion, with total liquidity (including credit lines) of $32.9 billion.
- 7Ford's credit rating was upgraded by Fitch, with its long-term senior unsecured debt rating moving to BBB- from BB+.