Summary
Ford Motor Company reported its financial results for the second quarter and first half of 2018, presenting a mixed performance. While total revenues showed a slight increase year-over-year for the first half of the year ($80.9 billion vs. $79.0 billion), net income attributable to Ford decreased significantly to $1.07 billion in Q2 2018 from $2.05 billion in Q2 2017. This decline was primarily driven by challenges within the Automotive segment, particularly in North America due to production disruptions from a supplier fire and performance issues in China. Despite these headwinds, the Ford Credit segment continued to perform strongly, demonstrating growth in receivables and healthy consumer credit metrics. The company ended the quarter with a solid liquidity position, reporting $16.8 billion in cash and cash equivalents, though overall cash levels were impacted by investing activities. Management expressed confidence in their liquidity and capital resources to navigate future investments and obligations.
Financial Highlights
48 data points| Revenue | $38.92B |
| Cost of Revenue | $33.19B |
| Gross Profit | $5.73B |
| SG&A Expenses | $2.78B |
| Operating Expenses | $38.33B |
| Interest Expense | $287.00M |
| Net Income | $1.07B |
| EPS (Basic) | $0.27 |
| EPS (Diluted) | $0.27 |
| Shares Outstanding (Basic) | 3.98B |
| Shares Outstanding (Diluted) | 4.00B |
Key Highlights
- 1Total revenues for the first half of 2018 increased to $80.9 billion from $79.0 billion in the prior year, indicating top-line resilience.
- 2Net income attributable to Ford Motor Company for the second quarter of 2018 significantly decreased to $1.07 billion, down from $2.05 billion in the same period last year, reflecting operational challenges.
- 3The Automotive segment experienced an EBIT loss of $181 million in Q2 2018, heavily influenced by production disruptions in North America and significant losses in Asia Pacific, particularly China.
- 4Ford Credit segment demonstrated continued strength with an Earnings Before Taxes (EBT) of $645 million in Q2 2018, up $26 million year-over-year, supported by growth in receivables and strong credit metrics.
- 5Total assets remained relatively stable, standing at $258.1 billion as of June 30, 2018, compared to $258.5 billion at the end of 2017.
- 6The company maintained a strong liquidity position with $16.8 billion in cash and cash equivalents as of June 30, 2018, although net cash decreased by $1.6 billion in the first half of the year.
- 7Ford updated its full-year adjusted EPS guidance downwards to a range of $1.30 to $1.50, reflecting lower-than-expected contributions from Asia Pacific and Europe.