What were the primary drivers of the decrease in net income for the third quarter of 2014 compared to the prior year?

The decrease in net income for the third quarter of 2014 was primarily driven by a significant decline in the Automotive sector's profitability. This was largely due to higher warranty costs, including recalls, particularly in North America, and lower wholesale volumes in both North and South America. Adverse balance sheet exchange effects also contributed to the lower results.

How did the Financial Services sector perform in the third quarter of 2014?

The Financial Services sector, primarily Ford Credit, showed strong performance in the third quarter of 2014, with its pre-tax profit increasing to $495 million from $363 million in the prior year. This improvement was mainly attributed to higher volumes across nearly all financing products, including consumer and non-consumer finance receivables globally, and leasing in North America.

What is Ford's outlook for the remainder of 2014 and for 2015 regarding profitability and market conditions?

Ford projects global economic growth to be around 2.5%, with significant concerns regarding Europe and South America. For the full year 2014, the company expects Automotive revenue to be about equal to 2013, with a lower operating margin and operating-related cash flow. Ford Credit's pre-tax profit is expected to be between $1.8 billion and $1.9 billion. For 2015, Ford anticipates a significantly higher total pre-tax profit, in the range of $8.5 billion to $9.5 billion, with improvements expected across all five Automotive regions, driven by new product launches and growth strategies.

What is the company's strategy for managing its balance sheet and liquidity?

Ford is focused on strengthening its balance sheet and improving its financial position. Key actions include managing Automotive gross cash levels, targeting around $20 billion on average, and maintaining access to funding through a revolving credit facility. The company also plans to reduce Automotive debt levels to about $10 billion by 2018, primarily by using cash from operations to pay down debt. Ford Credit maintains a diversified funding strategy and robust liquidity programs to support its operations.

FORD MOTOR CO 10-Q Quarterly Report Q3 FY2014

Summary

Ford Motor Company's (F) Q3 2014 report for the period ending September 29, 2014, shows a mixed financial performance. While the company reported an increase in overall revenues and net income attributable to Ford Motor Company for the nine-month period compared to the same period in 2013, the third quarter itself saw a decline in net income. The Automotive sector experienced lower revenues and profits, largely impacted by increased warranty costs, particularly in North America, and reduced volume in North and South America. The Financial Services sector, primarily Ford Credit, demonstrated strength with improved pre-tax profit driven by higher volumes across financing products. The company also provided an outlook for the remainder of 2014 and 2015, anticipating continued global economic challenges, especially in Europe and South America, but projecting growth and improved profitability in key regions and for the overall company in 2015. Key financial highlights include a substantial decrease in Automotive pre-tax profit year-over-year, offset by strong performance in Ford Credit. The company is actively managing its balance sheet, with plans to reduce Automotive debt and maintain robust liquidity. Investors should note the ongoing investments in new products and restructuring efforts, particularly in Europe, which are expected to drive future profitability.

Financial Highlights

32 data points

Beta

Revenue

$34.92B

0.1% Gross Margin

Net Income

$1.02B

0.0% Net Margin

EPS (Diluted)

$0.21

Total Assets

$208.84B

Cash & Equivalents

$13.32B

Free Cash Flow

$5.37B

Financial Statements

Beta

Revenue	$34.92B
Cost of Revenue	$30.20B
Gross Profit	$4.72B
SG&A Expenses	$3.48B
Operating Expenses	$34.43B
Net Income	$1.02B
EPS (Basic)	$0.22
EPS (Diluted)	$0.21
Shares Outstanding (Basic)	3.86B
Shares Outstanding (Diluted)	4.01B

Key Highlights

1Total revenues for the nine months ended September 30, 2014, were $108,207 million, a slight decrease from $109,347 million in the prior year period. Net income attributable to Ford Motor Company for the nine months was $3,135 million, down from $4,116 million in the prior year.
2Third quarter 2014 net income attributable to Ford Motor Company was $835 million, a decrease from $1,272 million in the third quarter of 2013.
3The Automotive sector reported a pre-tax loss of $439 million for the third quarter of 2014, a deterioration from a pre-tax profit of $1,728 million in the prior year quarter, significantly impacted by higher warranty costs and lower volumes in key regions.
4The Financial Services sector, primarily Ford Credit, reported a pre-tax profit of $495 million for the third quarter of 2014, an increase from $363 million in the prior year quarter, driven by higher financing volumes.
5Automotive gross cash was $22.8 billion at September 30, 2014, down from $24.8 billion at December 31, 2013, reflecting the company's focus on managing liquidity and debt.
6Ford Credit's managed receivables increased to $110.4 billion at September 30, 2014, from $103.4 billion at December 31, 2013, indicating growth in financing and leasing activities.
7The company announced a share repurchase program completion in August 2014, repurchasing approximately 116 million shares.

FORD MOTOR CO Quarterly Report for Q3 Ended Sep 30, 2014

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions