10-QPeriod: Q1 FY2013

FORD MOTOR CO Quarterly Report for Q1 Ended Mar 31, 2013

Filed May 1, 2013For Securities:FF-PCF-PDF-PB

Summary

Ford Motor Company reported strong first-quarter 2013 results, with net income attributable to Ford increasing to $1,611 million, or $0.40 per diluted share, from $1,396 million, or $0.35 per diluted share, in the prior year's first quarter. This growth was driven by a 10% increase in total revenues to $35.8 billion, primarily from the Automotive sector, which saw revenues rise to $33.9 billion. The company benefited from higher volume and improved net pricing, particularly in North America, which saw a significant increase in wholesales and revenue. Despite overall positive performance, the Automotive sector's pre-tax profit saw a slight decrease compared to the prior year, mainly due to increased costs and unfavorable exchange rates, particularly in South America. However, the Financial Services sector, primarily Ford Credit, demonstrated a solid performance with an increase in pre-tax profit driven by higher receivables and favorable residual performance. The company maintained a healthy liquidity position, with significant cash and marketable securities, and took steps to strengthen its balance sheet, including managing its debt levels and pension obligations.

Financial Statements
Beta
Revenue$35.65B
Cost of Revenue$30.00B
Gross Profit$5.64B
SG&A Expenses$3.12B
Operating Expenses$33.88B
Net Income$1.61B
EPS (Basic)$0.41
EPS (Diluted)$0.40
Shares Outstanding (Basic)3.92B
Shares Outstanding (Diluted)4.07B

Key Highlights

  • 1Net income attributable to Ford increased to $1,611 million ($0.40/share) in Q1 2013, up from $1,396 million ($0.35/share) in Q1 2012.
  • 2Total revenues grew by 10% to $35.8 billion, driven by a 10% increase in Automotive revenues to $33.9 billion.
  • 3Ford North America showed strong performance with a 17% increase in wholesales and a 20% increase in revenue, contributing significantly to overall profitability.
  • 4The Financial Services sector, mainly Ford Credit, reported an increase in pre-tax profit due to higher receivables and favorable residual performance.
  • 5Automotive sector pre-tax results saw a slight decrease year-over-year, primarily due to higher costs and unfavorable exchange rates, particularly impacting Ford Europe and Ford South America.
  • 6The company maintained a strong liquidity position, with Automotive gross cash totaling $24.2 billion and Automotive liquidity at $34.5 billion at the end of the quarter.
  • 7Ford is actively managing its debt levels, aiming for Automotive debt levels around $10 billion by mid-decade, and is making significant pension contributions.

Frequently Asked Questions

Ford's net income attributable to Ford Motor Company for the first quarter of 2013 was $1,611 million, an increase from $1,396 million reported for the same period in 2012. Diluted earnings per share were $0.40 in Q1 2013, up from $0.35 in Q1 2012.

The Automotive sector was the primary revenue driver, with revenues of $33.9 billion. Ford North America showed particularly strong performance in both revenue and profit within the Automotive segment. The Financial Services sector also contributed positively to profit, driven by Ford Credit's performance.

The Automotive sector's pre-tax results were negatively impacted by higher costs and unfavorable exchange rates, particularly in regions like South America (due to Venezuela's currency devaluation) and Europe. Restructuring costs in Europe and increased pension and OPEB expenses also contributed to higher costs.

Ford maintained a strong liquidity position with $24.2 billion in Automotive gross cash and $34.5 billion in Automotive liquidity. The company is focused on strengthening its balance sheet, aiming for Automotive debt levels around $10 billion by mid-decade, and has taken steps to manage its debt through issuances and redemptions. Significant pension contributions are also being made.