Summary
Ford Motor Company's third quarter and nine-month period ending September 30, 2019, demonstrated a mixed financial performance. While total revenues saw a slight decrease compared to the prior year, net income experienced a significant decline, largely due to substantial "special items" charges related to global redesign initiatives, including plant closures and impairments. Despite these headwinds, the company's Adjusted EBIT and Adjusted Free Cash Flow showed improvement, indicating underlying operational strength and effective cost management in core businesses, particularly within Ford Credit and improved performance in China and Europe. Key strategic actions, such as the planned divestiture of certain India automotive operations and ongoing global redesigns, are impacting profitability in the short term but are aimed at long-term efficiency and competitiveness. The company is actively managing its liquidity, maintaining a substantial cash balance, and has bolstered its credit facilities. Investors should monitor the execution of these restructuring efforts and their impact on future profitability, alongside the broader automotive market conditions.
Financial Highlights
51 data points| Revenue | $36.99B |
| Cost of Revenue | $32.28B |
| Gross Profit | $4.71B |
| SG&A Expenses | $2.60B |
| Operating Expenses | $37.25B |
| Operating Income | -$261.00M |
| Net Income | $425.00M |
| EPS (Basic) | $0.11 |
| EPS (Diluted) | $0.11 |
| Shares Outstanding (Basic) | 3.97B |
| Shares Outstanding (Diluted) | 4.01B |
Key Highlights
- 1Net income attributable to Ford Motor Company for the first nine months of 2019 was $1.7 billion, a significant decrease from $3.8 billion in the same period of 2018, heavily impacted by $3.3 billion in "special items" charges.
- 2Total revenues for the first nine months of 2019 were $116.2 billion, down from $118.5 billion in the prior year.
- 3Company Adjusted EBIT increased to $5.9 billion for the first nine months of 2019 from $5.5 billion in the same period of 2018, indicating improved operational performance excluding special items.
- 4Company Adjusted Free Cash Flow for the first nine months of 2019 was $2.3 billion, up from $1.3 billion in 2018, reflecting stronger cash generation from operations.
- 5A significant $799 million pre-tax impairment charge was recorded in the third quarter of 2019 related to assets held for sale in India.
- 6Ford Credit segment delivered strong results, with EBT increasing by 9% year-over-year in the third quarter to $736 million, driven by favorable derivatives market valuation and improved operating costs.
- 7The company is actively undergoing global redesign actions, leading to substantial special item charges totaling $3.3 billion for the first nine months of 2019, primarily related to South America, Europe, and India restructuring.