Summary
Ford Motor Company announced updated financial outlooks during a "Let's Chat" forum, indicating a projected decline in total company adjusted pre-tax profit for 2017 compared to 2016. This decline is attributed to planned investments in emerging opportunities, with an expectation of profit improvement in 2018. While the core Automotive and Ford Credit businesses are anticipated to improve through 2018, Ford Credit's pre-tax profit for 2017 is now estimated to be around $1.5 billion, a reduction of approximately $300 million from previous guidance due to lower auction values. The company also updated its expected effective tax rate for 2016 to be in the high 20s, both on an effective and adjusted effective basis. The filing also reiterates a comprehensive list of risk factors that could impact future performance, covering a broad range of industry, operational, financial, and regulatory challenges.
Key Highlights
- 1Total company adjusted pre-tax profit expected to decline in 2017 vs. 2016, with improvement anticipated in 2018.
- 2Planned investments in emerging opportunities are a key driver for the 2017 profit decline.
- 3Core Automotive and Ford Credit businesses are projected to improve through 2018.
- 4Ford Credit's 2017 pre-tax profit guidance revised downward by approximately $300 million to about $1.5 billion due to lower auction values.
- 5Effective tax rate for 2016 (both adjusted and unadjusted) is expected to be in the high 20s.
- 6The filing includes an extensive list of risk factors, underscoring potential challenges to future performance.