8-KOther EventsExhibits & Filings

FORD MOTOR CO 8-K Report, Corporate Update (Mar 1, 2012)

Filed March 1, 2012For Securities:FF-PCF-PDF-PB

Summary

Ford Motor Company's (F) March 1, 2012, 8-K filing provides an update on its European operations and reaffirms its overall 2012 guidance. The company's Chief Financial Officer indicated that European automotive industry sales volumes are tracking below initial expectations for 2012. Consequently, Ford Europe's results for the first quarter of 2012 are anticipated to be similar to or slightly worse than the fourth quarter of 2011. However, Ford expects an improvement in its European pre-tax results throughout the year, driven by new product launches and cost-reduction initiatives, with a projected full-year loss of approximately $500 million to $600 million for Ford Europe. Despite the challenges in Europe, Ford maintained its overall company guidance for 2012, expecting automotive pre-tax profits to improve and total company pre-tax profits to be roughly in line with 2011 results. The filing also incorporates by reference a news release concerning U.S. retail sales for February 2012 and reiterates several risk factors that could impact the company's future performance, including economic downturns, market share declines, product acceptance, and fluctuations in currency and commodity prices.

Key Highlights

  • 1Ford Europe's full-year industry sales volume forecast for 2012 revised down to approximately 14 million units.
  • 2Ford Europe's Q1 2012 results are expected to be about the same as or somewhat worse than Q4 2011.
  • 3Ford Europe projected to incur a full-year pre-tax loss of approximately $500 million to $600 million.
  • 4Company reaffirms overall 2012 guidance: Automotive pre-tax profits to improve, total pre-tax profits to be equal to 2011 results.
  • 5Filing includes a news release on February 2012 U.S. retail sales as an exhibit.
  • 6Risk factors section highlights potential negative impacts from economic conditions, market share, product acceptance, and operational challenges.

Frequently Asked Questions

Ford now expects the European automotive industry sales volume for the 19 tracked markets to be around 14 million units for the full year 2012, a downward revision from the initial planning assumption of 14-15 million units. Consequently, Ford Europe's first quarter 2012 results are anticipated to be similar to or slightly worse than the fourth quarter of 2011. However, the company expects improvement throughout the year due to new products and cost controls, projecting a full-year pre-tax loss for Ford Europe of approximately $500 million to $600 million.

No, Ford has maintained its total company guidance for 2012. The company still expects automotive pre-tax profits to improve and total company pre-tax profits to be approximately equal to the full-year 2011 results.

The filing reiterates significant risk factors for investors to consider. These include declines in industry sales volume (especially in the US and Europe), potential loss of market share, lower-than-anticipated market acceptance of new products, increased fuel prices, intense price competition, currency and commodity price fluctuations, economic and geopolitical events, supplier distress, production disruptions, and substantial pension and postretirement liabilities.

Yes, the filing states that a news release dated March 1, 2012, concerning U.S. retail sales in February 2012, is included as an exhibit (Exhibit 99) and incorporated by reference.