Summary
Ford Motor Company's second quarter 2012 results showed a decrease in net income attributable to Ford Motor Company, falling to $1.04 billion from $2.398 billion in the same period of 2011. This decline was primarily driven by lower operating results in the Automotive sector, particularly in Europe, and higher tax expenses. Total revenues also saw a decrease, reflecting softer market conditions and production adjustments. Despite the profit decline, the company maintained a strong liquidity position with $23.7 billion in gross cash and marketable securities for the Automotive sector and $11.1 billion for Ford Credit. Ford Credit's managed leverage ratio improved, and credit losses remained at historically low levels, indicating resilience in its financial services arm. However, the challenging European market outlook suggests potential headwinds for the company's overall performance in the latter half of the year. The company is navigating a complex global economic landscape, with continued strength expected in North America due to new product launches, while Europe presents significant challenges leading to an expected full-year loss exceeding $1 billion for the region. Ford is implementing strategies to manage these regional disparities, focusing on cost control and operational efficiency across its global operations. Investors should monitor the company's ability to adapt to the European economic downturn and the impact of its new product introductions on future revenue and profitability.
Financial Highlights
35 data points| Revenue | $33.21B |
| Cost of Revenue | $27.87B |
| Gross Profit | $5.34B |
| SG&A Expenses | $2.98B |
| Operating Expenses | $31.63B |
| Operating Income | $2.44B |
| Interest Expense | $986.00M |
| Net Income | $1.04B |
| EPS (Basic) | $0.27 |
| EPS (Diluted) | $0.26 |
| Shares Outstanding (Basic) | 3.81B |
| Shares Outstanding (Diluted) | 4.01B |
Key Highlights
- 1Net income attributable to Ford Motor Company decreased by $1.358 billion to $1.04 billion in Q2 2012 compared to $2.398 billion in Q2 2011.
- 2Total revenues for Q2 2012 were $33.211 billion, down from $35.527 billion in Q2 2011.
- 3The Automotive sector reported a pre-tax operating loss of $404 million for Ford Europe in Q2 2012, a significant decline from a profit in Q2 2011, with full-year losses expected to exceed $1 billion for the region.
- 4Ford North America showed resilience with a pre-tax operating profit of $2 billion in Q2 2012, up $100 million year-over-year, driven by higher net pricing and improved contribution costs.
- 5Ford Credit maintained strong liquidity with $11.1 billion in cash, cash equivalents, and marketable securities and projected full-year 2012 pre-tax profits of approximately $1.5 billion.
- 6The company's total Automotive gross cash (cash and marketable securities) was $23.7 billion at June 30, 2012, an increase from $22.0 billion at June 30, 2011, indicating a stable liquidity position.
- 7Ford declared a third-quarter 2012 dividend of $0.05 per share, signaling a return of capital to shareholders.