10-QPeriod: Q1 FY2016

FORD MOTOR CO Quarterly Report for Q1 Ended Mar 31, 2016

Filed April 28, 2016For Securities:FF-PCF-PDF-PB

Summary

Ford Motor Company reported a strong first quarter ending March 31, 2016, with significant increases in revenue and net income compared to the prior year. Total revenues rose to $37.7 billion, up from $33.9 billion in Q1 2015, while net income attributable to Ford surged to $2.45 billion from $1.15 billion. This performance was largely driven by robust results in the Automotive sector, particularly in North America, which achieved record pre-tax profit. The Financial Services sector also demonstrated continued strong performance, contributing positively to the overall financial health of the company. Key financial highlights include a substantial improvement in earnings per share, with diluted EPS rising to $0.61 from $0.29. The company also saw healthy growth in cash and marketable securities, indicating solid liquidity. Management expressed confidence in the company's strategic direction and outlook for the remainder of the year, anticipating continued global growth and stability in the automotive industry.

Financial Highlights

33 data points
Beta

Revenue

$37.72B

19.1% Gross Margin

Net Income

$2.45B

6.5% Net Margin

EPS (Diluted)

$0.61

Total Assets

$237.29B

Cash & Equivalents

$15.92B

Free Cash Flow

$4.15B

Financial Statements
Beta
Revenue$37.72B
Cost of Revenue$30.52B
Gross Profit$7.20B
SG&A Expenses$2.69B
Operating Expenses$35.27B
Interest Expense$200.00M
Net Income$2.45B
EPS (Basic)$0.62
EPS (Diluted)$0.61
Shares Outstanding (Basic)3.97B
Shares Outstanding (Diluted)4.00B

Key Highlights

  • 1Total revenues increased by 11.2% year-over-year to $37.7 billion.
  • 2Net income attributable to Ford Motor Company more than doubled, reaching $2.45 billion, up from $1.15 billion in Q1 2015.
  • 3Diluted earnings per share significantly improved to $0.61 from $0.29 in the prior year's quarter.
  • 4The Automotive sector reported record pre-tax profit driven by strong performance in North America, Europe, and Asia Pacific.
  • 5Financial Services sector maintained strong profitability with pre-tax profit of $499 million.
  • 6Total Automotive cash and marketable securities increased to $24.3 billion from $19.5 billion in the prior year.
  • 7The company's credit ratings were upgraded by Moody's, DBRS, and S&P during the first quarter of 2016.

Frequently Asked Questions

Ford's increased profitability in the first quarter of 2016 was primarily driven by strong performance in its Automotive sector, particularly in North America, which set a quarterly record for pre-tax profit. Higher automotive revenues, driven by increased wholesale volumes and favorable product mix, along with continued solid results from the Financial Services sector, contributed significantly to the overall profit growth.

The Automotive sector showed significant improvement. Revenues increased by 11% to $35.3 billion. Pre-tax profit, excluding special items, was $3.3 billion, a substantial increase from $2.0 billion in Q1 2015. This growth was attributed to favorable volume and mix in all regions except South America, as well as lower contribution costs.

Ford Credit demonstrated continued strong performance, with pre-tax profit of $499 million. Managed receivables grew by 17% year-over-year to $132 billion. Delinquency ratios remained low, although the loss-to-receivables ratio saw a modest increase as it normalized towards expectations. Ford Credit maintains robust liquidity and continues to diversify its funding sources.

Yes, Ford's outlook for 2016 remained positive, with expectations for continued global growth in automotive industry sales. They anticipated GDP expansion, stable commodity prices, and continued growth in China, though at a slower pace. The company's guidance for its business units and overall company metrics remained unchanged.