Summary
Ford Motor Company's (F) Q2 2017 filing indicates a slight increase in total revenues to $39.9 billion, up from $39.5 billion in the prior year's second quarter. Net income attributable to Ford increased modestly to $2.04 billion, or $0.51 per diluted share, compared to $1.97 billion, or $0.49 per diluted share, in Q2 2016. The Automotive segment experienced a pre-tax profit of $2.2 billion, a decrease from the previous year, largely due to higher commodity costs and unfavorable exchange rates, partially offset by favorable net pricing and product mix. The Financial Services segment, primarily Ford Credit, showed strong performance with its best quarterly pre-tax profit since 2011, driven by increased receivables and improved credit loss performance. Despite the slight revenue and net income growth, investors should note the decline in Automotive segment profit and the significant increase in total costs and expenses. While Ford Credit's performance is a positive, the overall financial health is influenced by the core automotive business. The company anticipates lower total company adjusted pre-tax profit in the second half of 2017 compared to the first half, with the third quarter expected to be the lowest due to seasonal factors and new model launches. The company is also updating its full-year adjusted EPS guidance to a range of $1.65 to $1.85, benefiting from a more favorable adjusted effective tax rate.
Financial Highlights
47 data points| Revenue | $39.85B |
| Cost of Revenue | $33.34B |
| Gross Profit | $6.51B |
| SG&A Expenses | $2.76B |
| Operating Expenses | $38.30B |
| Interest Expense | $277.00M |
| Net Income | $2.05B |
| EPS (Basic) | $0.51 |
| EPS (Diluted) | $0.51 |
| Shares Outstanding (Basic) | 3.98B |
| Shares Outstanding (Diluted) | 4.00B |
Key Highlights
- 1Total revenues increased slightly to $39.9 billion in Q2 2017, up from $39.5 billion in Q2 2016.
- 2Net income attributable to Ford Motor Company rose to $2.04 billion ($0.51 per diluted share) from $1.97 billion ($0.49 per diluted share) in the prior year's second quarter.
- 3The Automotive segment's pre-tax profit decreased year-over-year, impacted by higher commodity costs and unfavorable exchange rates, despite positive market factors like net pricing and mix.
- 4Ford Credit, the Financial Services segment, achieved its strongest quarterly pre-tax profit since 2011, driven by higher receivables and better credit loss performance.
- 5Total costs and expenses increased by $0.8 billion in the second quarter and $3.1 billion in the first half of 2017 compared to the respective periods in 2016.
- 6The company updated its full-year 2017 adjusted EPS guidance to a range of $1.65 to $1.85, largely due to a more favorable adjusted effective tax rate.
- 7Cash, cash equivalents, and marketable securities for the Automotive segment stood at $28.4 billion as of June 30, 2017, with a target of around $20 billion.