Summary
Ford Motor Company reported a solid first quarter in 2018, demonstrating revenue growth driven by higher volumes and favorable pricing, despite a slight dip in wholesale units. Net income attributable to Ford increased to $1.736 billion from $1.592 billion in the prior year's quarter, with diluted earnings per share rising to $0.43 from $0.40. This performance was bolstered by a lower effective tax rate, partially offset by increased commodity costs and adverse exchange effects impacting the Automotive segment. The Ford Credit segment also showed significant improvement, with earnings before taxes increasing by $160 million year-over-year, attributed to growth in receivables globally and healthy U.S. consumer credit metrics. The company maintained a strong liquidity position with substantial cash and marketable securities, aiming to balance investments in future growth, debt obligations, and shareholder returns. The company is also navigating significant investments in its Mobility segment, which incurred a loss due to autonomous vehicle development, signaling a strategic shift towards future technologies.
Financial Highlights
47 data points| Revenue | $41.96B |
| Cost of Revenue | $35.75B |
| Gross Profit | $6.21B |
| SG&A Expenses | $2.75B |
| Operating Expenses | $40.84B |
| Net Income | $1.74B |
| EPS (Basic) | $0.44 |
| EPS (Diluted) | $0.43 |
| Shares Outstanding (Basic) | 3.97B |
| Shares Outstanding (Diluted) | 4.00B |
Key Highlights
- 1Total revenues increased by 7% to $41.96 billion in Q1 2018 compared to $39.15 billion in Q1 2017.
- 2Net income attributable to Ford Motor Company rose to $1.736 billion ($0.43 EPS) from $1.592 billion ($0.40 EPS) in the same period last year.
- 3Ford Credit segment's earnings before taxes improved significantly, up $160 million year-over-year.
- 4Automotive segment faced headwinds from commodity cost increases ($480 million) and adverse exchange effects ($240 million), partially offset by higher net pricing and favorable stock changes in North America.
- 5Mobility segment reported a loss of $102 million, primarily due to increased investment in autonomous vehicle development.
- 6Company maintained a strong liquidity position with $27.6 billion in Company cash, cash equivalents, and marketable securities (excluding Ford Credit).
- 7Ford Credit's managed leverage was 8.4x, within the target range of 8:1 to 9:1.