10-QPeriod: Q2 FY2015

FORD MOTOR CO Quarterly Report for Q2 Ended Jun 30, 2015

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

Summary

Ford Motor Company reported solid financial results for the second quarter and first half of 2015, demonstrating continued strength in its Automotive sector, which achieved its highest pre-tax profit since 2000. Total revenues saw a slight decrease year-over-year, primarily due to unfavorable foreign currency translation effects, but this was largely offset by higher net pricing and volume increases in key regions like North America and Europe. The Financial Services sector also contributed positively, with improved pre-tax profit driven by favorable volume and mix, as well as the non-recurrence of significant storm-related insurance losses from the prior year. Ford Credit maintained a strong balance sheet and a robust liquidity position. The company reaffirmed its positive full-year outlook, expecting continued growth and improved profitability.

Financial Highlights

33 data points
Beta

Revenue

$39.48B

23.2% Gross Margin

Net Income

$2.16B

5.5% Net Margin

EPS (Diluted)

$0.54

Total Assets

$216.13B

Cash & Equivalents

$12.90B

Free Cash Flow

$5.21B

Financial Statements
Beta
Revenue$39.48B
Cost of Revenue$30.33B
Gross Profit$9.16B
SG&A Expenses$2.54B
Operating Expenses$34.62B
Interest Expense$190.00M
Net Income$2.16B
EPS (Basic)$0.54
EPS (Diluted)$0.54
Shares Outstanding (Basic)3.97B
Shares Outstanding (Diluted)4.01B

Key Highlights

  • 1Automotive sector achieved record pre-tax profit in Q2 2015, the highest since 2000, indicating strong operational performance.
  • 2Total revenues slightly decreased to $37.26 billion in Q2 2015 from $37.41 billion in Q2 2014, impacted by foreign currency fluctuations.
  • 3Net income attributable to Ford Motor Company increased to $1.885 billion in Q2 2015, up from $1.311 billion in Q2 2014.
  • 4Diluted earnings per share rose to $0.47 in Q2 2015 from $0.32 in Q2 2014, reflecting improved profitability.
  • 5North America region delivered record profit in Q2 2015, significantly contributing to the Automotive sector's strong performance.
  • 6Ford Credit's managed receivables grew to $117.6 billion, and the sector maintained a strong liquidity position.
  • 7The company reaffirmed its positive full-year outlook, projecting higher Automotive revenue and pre-tax profit.

Frequently Asked Questions

Ford Motor Company reported a strong second quarter in 2015. Net income attributable to Ford Motor Company increased to $1.885 billion, compared to $1.311 billion in the same period of 2014. Diluted earnings per share rose to $0.47 from $0.32. The Automotive sector, in particular, showed robust performance, achieving its highest pre-tax profit since 2000.

The Automotive sector was the primary driver of profitability, with North America delivering a record profit in the second quarter. The Financial Services sector, primarily Ford Credit, also saw improved pre-tax profit due to favorable volume and mix, and the non-recurrence of prior year insurance losses. Ford Credit maintained strong liquidity and growing managed receivables.

Total revenues slightly decreased year-over-year in the second quarter of 2015. This was largely due to the unfavorable translation effects of a strong U.S. dollar on international operations. However, this was partially offset by higher net pricing and increased wholesale volumes in key regions like North America and Europe.

Ford reaffirmed its positive full-year outlook. The company expects continued growth in Automotive revenue, higher Automotive operating margin, and improved pre-tax profit for the full year. Ford Credit is also projected to maintain or increase its pre-tax profit compared to 2014. Overall, Ford anticipates 2015 to be a strong year for the company.