Congratulations! The outstanding quarterly results we are announcing today are further evidence that our One Ford plan continues to deliver and build momentum.
As a result of our commitment to serving customers around the world and delivering profitable growth, we are announcing a record third quarter pre-tax profit. We also are improving our expectations and guidance for full year pre-tax profit and Automotive operating margin.
Our third quarter earnings are driven by volume and revenue growth across our business, with market share increases in all regions. We reported continued strong results in North America, record third quarter profit for Asia Pacific Africa, profit in South America and continued solid performance by Ford Credit. We also are celebrating the first combined profit for regions outside North America since the second quarter of 2011.
Our results also are proof that our transformation plan in Europe is on track to return to profitability by mid-decade, as Europe substantially reduced its loss compared with a year ago and the second quarter.
We will continue our laser focus on serving customers with vehicles delivering the very best quality, fuel efficiency, safety, smart design and value through our One Ford plan, which remains unchanged:
• Aggressively restructure to operate profitably at the current demand and changing model mix
• Accelerate the development of new products that customers want and value
• Finance the plan and improve the balance sheet
• Work together effectively as one team, leveraging Ford’s global assets
It is important for all of us to read the news release
below and to understand the progress we are making against our plan and our outlook for the future. We will meet with financial analysts and representatives of the news media throughout the day to discuss this information and answer questions.
We also will discuss our results, accomplishments, challenges and opportunities during today’s Global Town Hall meeting, conducted outside of Dearborn for the first time ever in Shanghai. The video of the Global Town Hall
will be available to view by 10 a.m. in Dearborn, 11 a.m. in São Paulo, 4 p.m. in Cologne and 10 p.m. in Shanghai.
One Team. One Plan. One Goal. One Ford.
Congratulations again, and thank you!
Ford Delivers Record Third Quarter Pre-Tax Profit of $2.6 Billion; Improves Full Year Guidance
• Record third quarter pre-tax profit of $2.6 billion, an increase of $426 million compared with a year ago; 17th consecutive quarter of profitability; third quarter earnings per share of 45 cents, an improvement of 5 cents per share compared with a year ago
• Net income of $1.3 billion, or 31 cents per share, down $359 million, or 10 cents per share, compared with a year ago due to pre-tax special item charges of $498 million. Special item charges included $250 million for separation-related actions, primarily in Europe to support the company’s transformation plan, and $145 million associated with Ford’s U.S. salaried retiree voluntary lump sum payout program as part of its pension de-risking strategy
• Top-line growth with wholesale volume and total company revenue up 16 percent and 12 percent, respectively, compared with a year ago; growth supported by year-over-year market share gains in all regions; fourth consecutive quarter of top-line growth
• Record third quarter pre-tax profit for Automotive sector; continued strong results in North America and a combined profit for regions outside North America for first time since second quarter 2011; record third quarter profit for Asia Pacific Africa; profitable in South America; loss in Europe, but improved substantially from second quarter and a year ago. Ford Credit remained solidly profitable
• Record third quarter Automotive operating-related cash flow of $1.6 billion; 14th consecutive quarter of positive operating-related cash flow; strong liquidity of $37.5 billion, an increase of $400 million from the end of the second quarter
• First nine months pre-tax profit of $7.3 billion, an improvement of $1 billion compared with a year ago; first nine months net income of $4.1 billion
• Improved full year company financial guidance: Ford now expects total company pre-tax profit to be higher than 2012, improved from prior guidance of equal to or higher than 2012. Ford also now expects Automotive operating margin to be higher than last year rather than about equal. Ford continues to expect Automotive operating-related cash flow to be substantially higher than 2012
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