Summary
Ford Motor Company reported its first quarter 2017 financial results, indicating a decline in net income attributable to Ford compared to the prior year. Net income for the quarter was $1.587 billion, down from $2.452 billion in the first quarter of 2016, translating to diluted earnings per share of $0.40 versus $0.61 in the prior year. Total revenues increased slightly to $39.146 billion from $37.718 billion in the same period last year, driven primarily by the Automotive segment. Despite increased revenues, total costs and expenses also rose, contributing to the lower profitability. The company's Automotive segment experienced a decrease in pre-tax profit, primarily due to higher costs related to warranty expenses (including recalls), engineering investments, and commodity prices. The Financial Services segment, primarily Ford Credit, also saw a slight decline in pre-tax profit, influenced by less favorable lease residual performance. While overall profitability declined year-over-year, Ford's liquidity remains strong, with total cash, cash equivalents, and marketable securities at $39.989 billion. Management has guided for a decline in total Company adjusted pre-tax profit for the full year 2017 compared to 2016, with most of this decline occurring in the first quarter.
Financial Highlights
45 data points| Revenue | $39.15B |
| Cost of Revenue | $32.70B |
| Gross Profit | $6.45B |
| SG&A Expenses | $2.76B |
| Operating Expenses | $37.68B |
| Interest Expense | $279.00M |
| Net Income | $1.59B |
| EPS (Basic) | $0.40 |
| EPS (Diluted) | $0.40 |
| Shares Outstanding (Basic) | 3.98B |
| Shares Outstanding (Diluted) | 4.00B |
Key Highlights
- 1Net income attributable to Ford Motor Company decreased by approximately 35% to $1.587 billion in Q1 2017 from $2.452 billion in Q1 2016.
- 2Diluted earnings per share (EPS) fell to $0.40 in Q1 2017 from $0.61 in Q1 2016.
- 3Total revenues increased by 3.8% to $39.146 billion in Q1 2017 from $37.718 billion in Q1 2016, with the Automotive segment revenue growing to $36.475 billion.
- 4The Automotive segment's pre-tax profit declined significantly, driven by higher costs including warranty, recalls, engineering, and commodities.
- 5Ford Credit's pre-tax profit also saw a decrease, influenced by unfavorable lease residual performance in the U.S.
- 6Total Automotive cash, cash equivalents, and marketable securities stood at $28.028 billion as of March 31, 2017, indicating strong liquidity.
- 7The company adopted new accounting standards (ASU 2016-09 and ASU 2014-09) on January 1, 2017, which had an impact on retained earnings and revenue recognition, though the ongoing impact was expected to be immaterial.