10-QPeriod: Q1 FY2015

FORD MOTOR CO Quarterly Report for Q1 Ended Mar 31, 2015

Filed April 28, 2015For Securities:FF-PCF-PDF-PB

Summary

Ford Motor Company reported its first-quarter 2015 results, showing a decrease in total revenues to $33.9 billion from $35.9 billion in the prior year. This decline was primarily driven by the Automotive segment, which saw revenues fall to $31.8 billion from $33.9 billion, impacted by unfavorable foreign exchange rates due to a strong U.S. dollar and lower wholesale volumes related to product launches. Despite lower revenues, the company reported a net income attributable to Ford Motor Company of $924 million, or $0.23 per diluted share, compared to $989 million, or $0.24 per diluted share, in the first quarter of 2014. The Financial Services segment remained a stable contributor, with revenues increasing slightly and income before taxes remaining strong. The company highlighted improvements in Automotive operating margin to 3.6% and maintained its full-year outlook for strong top-line growth and improved profitability. Key strategic initiatives, including new product launches and capacity expansions in Asia Pacific, are expected to drive future performance. Ford also provided an update on its commitment to reducing Automotive debt and strengthening its balance sheet. Overall, the report indicates a company navigating currency headwinds and product transition challenges while maintaining a positive outlook driven by strategic investments and product pipeline.

Financial Highlights

32 data points
Beta

Revenue

$33.90B

16.0% Gross Margin

Net Income

$1.15B

3.4% Net Margin

EPS (Diluted)

$0.29

Total Assets

$212.45B

Cash & Equivalents

$12.37B

Free Cash Flow

$2.41B

Financial Statements
Beta
Revenue$33.90B
Cost of Revenue$28.47B
Gross Profit$5.43B
SG&A Expenses$3.46B
Operating Expenses$32.66B
Net Income$1.15B
EPS (Basic)$0.29
EPS (Diluted)$0.29
Shares Outstanding (Basic)3.96B
Shares Outstanding (Diluted)4.00B

Key Highlights

  • 1Total revenues decreased by 5.5% to $33.9 billion in Q1 2015 compared to $35.9 billion in Q1 2014.
  • 2Net income attributable to Ford Motor Company decreased to $924 million ($0.23/share) in Q1 2015 from $989 million ($0.24/share) in Q1 2014.
  • 3Automotive sector revenue declined 6% to $31.8 billion, impacted by unfavorable exchange rates and lower volumes due to product launches.
  • 4Automotive operating margin improved slightly to 3.6% from 3.4% in the prior year's quarter.
  • 5Financial Services sector revenue increased to $2.1 billion from $2.0 billion, with income before taxes remaining stable at $469 million.
  • 6Ford Credit's managed receivables were $112.9 billion as of March 31, 2015, largely unchanged from year-end 2014.
  • 7The company is on track to meet its full-year guidance for total company pre-tax profit of $8.5 billion to $9.5 billion (excluding special items).

Frequently Asked Questions

Ford's overall financial performance showed a decrease in total revenues from $35.9 billion in Q1 2014 to $33.9 billion in Q1 2015. Net income attributable to Ford Motor Company also decreased slightly from $989 million ($0.24/share) to $924 million ($0.23/share) over the same period.

The primary drivers for the revenue decline in the Automotive sector were unfavorable foreign exchange rates, largely due to a strong U.S. dollar impacting international operations, and slightly lower wholesale volumes. These lower volumes were attributed to product launch effects, which constrained market share growth despite a slight increase in global industry sales.

The Financial Services segment performed stably. Revenues increased to $2.1 billion from $2.0 billion in the prior year, and income before taxes remained strong at $469 million. Ford Credit's managed receivables were stable, supported by growth in consumer finance receivables globally and an increase in leasing in North America, though this was offset by the impact of a strong U.S. dollar on translation.

Ford expects 2015 to be a strong year, with global industry sales expected to grow modestly. The company anticipates strong top-line growth in the Automotive sector, improved Automotive operating margin, and higher operating-related cash flow. Ford Credit is expected to deliver equal or higher pre-tax profit compared to 2014. The total company pre-tax profit (excluding special items) is projected to be between $8.5 billion and $9.5 billion.