10-QPeriod: Q3 FY2017

FORD MOTOR CO Quarterly Report for Q3 Ended Sep 30, 2017

Filed October 26, 2017For Securities:FF-PCF-PDF-PB

Summary

Ford Motor Company's third quarter 2017 results showed a significant increase in net income attributable to Ford, rising to $1.564 billion from $957 million in the prior year's third quarter. This translated to a diluted EPS of $0.39, up from $0.24 in the same period last year. Total revenues for the quarter reached $36.5 billion, a slight increase driven by the Automotive segment. The company highlighted improved profitability across most operating segments, with the Automotive segment's pre-tax results showing a notable increase due to favorable cost performance and market factors. The Financial Services segment also contributed positively with increased pre-tax profit, driven by strong receivables growth and lease residual performance. While overall results were strong, the company did experience a wider loss in the 'All Other' segment, primarily due to Ford Smart Mobility LLC's performance and increased net interest expense.

Financial Highlights

47 data points
Beta

Revenue

$36.45B

16.9% Gross Margin

Net Income

$1.57B

4.3% Net Margin

EPS (Diluted)

$0.39

Total Assets

$251.85B

Cash & Equivalents

$17.72B

Free Cash Flow

$5.00B

Financial Statements
Beta
Revenue$36.45B
Cost of Revenue$30.27B
Gross Profit$6.18B
SG&A Expenses$2.92B
Operating Expenses$35.45B
Interest Expense$284.00M
Net Income$1.57B
EPS (Basic)$0.40
EPS (Diluted)$0.39
Shares Outstanding (Basic)3.97B
Shares Outstanding (Diluted)4.00B

Key Highlights

  • 1Net income attributable to Ford increased significantly to $1.564 billion in Q3 2017 from $957 million in Q3 2016.
  • 2Diluted Earnings Per Share (EPS) improved to $0.39 in Q3 2017, up from $0.24 in the prior year's Q3.
  • 3Total revenues for the third quarter were $36.5 billion, a modest increase from $35.9 billion in Q3 2016.
  • 4The Automotive segment's pre-tax results saw a substantial improvement, driven by favorable cost performance and market factors, including the non-repeat of a recall from the prior year.
  • 5Ford Credit's pre-tax profit increased, benefiting from strong receivables growth and improved lease residual performance.
  • 6The company maintained a strong liquidity position with $26.1 billion in Automotive cash and $37 billion in total Automotive liquidity at the end of the quarter.
  • 7Ford updated its full-year 2017 adjusted EPS guidance to a range of $1.75 to $1.85, reflecting improved operating performance and cost initiatives.

Frequently Asked Questions

The primary driver for the increase in net income was the strong performance of the Automotive segment, which benefited from favorable cost performance and market factors. Additionally, the Financial Services segment contributed positively with increased pre-tax profit.

Ford's total revenues increased slightly to $36.5 billion in the third quarter of 2017, up from $35.9 billion in the same period of 2016. This growth was primarily supported by the Automotive segment.

Ford updated its full-year 2017 adjusted EPS guidance to a range of $1.75 to $1.85, indicating an expectation of improved operating performance and successful cost initiatives.

Ford Credit's pre-tax profit improved in the third quarter of 2017, driven by strong receivables growth and favorable lease residual performance. Despite a slight increase in the loss-to-receivables ratio, the overall portfolio performance remained robust.