Summary
Ford Motor Company's second quarter and first half of 2019 results show a significant year-over-year decrease in net income, primarily driven by "special item charges" related to global redesign initiatives, particularly in Europe and South America. While total revenues remained largely flat, the Automotive segment experienced a decline in EBIT year-over-year due to increased warranty costs and launch-related volume impacts, despite strong pricing and mix. Ford Credit, however, demonstrated improved performance with a 29% increase in EBT, benefiting from favorable loss metrics and better-than-expected auction values for off-lease vehicles. The company highlighted its focus on maintaining strong liquidity, with Company cash levels targeted at or above $20 billion. Significant investments continue in the Mobility segment, particularly in autonomous vehicle capabilities.
Financial Highlights
51 data points| Revenue | $38.85B |
| Cost of Revenue | $33.66B |
| Gross Profit | $5.20B |
| SG&A Expenses | $2.73B |
| Operating Expenses | $38.76B |
| Operating Income | $90.00M |
| Net Income | $148.00M |
| EPS (Basic) | $0.04 |
| EPS (Diluted) | $0.04 |
| Shares Outstanding (Basic) | 3.98B |
| Shares Outstanding (Diluted) | 4.01B |
Key Highlights
- 1Net income attributable to Ford significantly decreased to $148 million in Q2 2019 from $1.069 billion in Q2 2018, largely due to $1.2 billion in special item charges related to global redesign efforts.
- 2Total revenues remained stable, with Q2 2019 at $38.85 billion compared to $38.92 billion in Q2 2018, indicating resilience in top-line performance despite challenges.
- 3Automotive segment EBIT saw a slight decrease in Q2 2019, influenced by increased warranty costs and launch-related volumes, though strong mix and pricing partially offset these pressures.
- 4Ford Credit segment performed strongly, with a 29% increase in Earnings Before Taxes (EBT) in Q2 2019, attributed to favorable credit loss metrics and stable auction values for used vehicles.
- 5The company maintained a robust liquidity position, with Company cash (excluding Ford Credit) at $23.2 billion as of June 30, 2019, exceeding its target of $20 billion.
- 6Investments in the Mobility segment increased by 46% year-over-year, reflecting ongoing strategic investments in autonomous vehicles and mobility services.
- 7The company recorded $291 million and $542 million in accelerated depreciation and other non-cash charges in Q2 and H1 2019, respectively, related to global redesign actions.