Blue Oval Connect Newswire

Blue Oval Connect Newswire: April 25, 2014

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Financial Results
Ford Motor Company 2014 First-Quarter Financial Results

A Note from President and CEO Alan Mulally

Today, we are announcing that we achieved our 19th-consecutive profitable quarter by delivering a 2014 first quarter pre-tax profit of U.S. $1.4 billion. We also are affirming that we are on track with our full-year pre-tax profit guidance of $7 billion to $8 billion, as we launch 23 new global vehicles, the most in a single year in our history.

These achievements are more evidence that our One Ford plan continues to deliver.

Asia Pacific reported record quarterly profit and higher market share driven by a record market in China. North America and Middle East & Africa were profitable. Europe reduced its loss by more than half, confirming our continued progress toward achieving a profit in the region in 2015. South America incurred larger losses compared with a year ago, largely due to the external environment and currency volatility there. Ford Credit once again delivered solid results.

As we focus on delivering our plan in the months ahead, it is important that each of us stays laser-focused on 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
Please read the news release below, which outlines 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 their questions.

One Team. One Plan. One Goal. One Ford.

Congratulations and thank you!

Alan Mulally
Alan Mulally
President and CEO
Ford Motor Company

Below is an excerpt of the company's press release regarding Ford Motor Company's 2014 first-quarter financial results. To read the full release, click here.

Ford Posts First-Quarter 2014 Pre-Tax Profit of $1.4 Billion, Net Income of $989 Million; Global New Product Launches on Track

DEARBORN, Mich., April 25, 2014 – Ford Motor Company today reported a 2014 first-quarter pre-tax profit of $1.4 billion, its 19th-consecutive profitable quarter. The company also affirmed its full-year pre-tax profit guidance of $7 billion to $8 billion as it launches 23 new global vehicles, the most in a single year in its history.

The company's pre-tax profit of $1.4 billion was $765 million lower than a year ago. After-tax earnings per share were 25 cents, excluding special items, 16 cents below a year ago. Net income for the quarter was $989 million, or 24 cents per share, a decline of $622 million, or 16 cents, from a year ago. Net income included pre-tax special item charges of $122 million for separation-related actions, primarily to support the European transformation plan.

The company's results were adversely affected by several significant factors that were not representative of its underlying business run rate. In North America, these included warranty reserve increases for field service actions for prior models, including safety recalls and other product campaigns, and weather-related costs. For South America, these included balance sheet currency exchange effects.

In total, these factors reduced first quarter pre-tax profit by about $900 million, or the equivalent of 17 cents per share. They also account for a year-over-year decline in company pre-tax profit of $700 million. While similar factors could occur in the future, it is unusual for items like these to occur in this magnitude in the same quarter.

Among the business units, Asia Pacific reported a record quarterly profit, and North America and Middle East & Africa were profitable. Europe reduced its loss by more than half and South America incurred larger losses compared with a year ago. Ford Credit once again delivered solid results.

First quarter wholesale volume was up 6 percent and revenue improved about 1 percent from a year ago. The company had continued market share gains in Asia Pacific, including record market share in China.

Ford's Automotive operating-related cash flow was $1.2 billion in the first quarter. The company ended the first quarter with Automotive gross cash of $25.2 billion, exceeding debt by $9.5 billion, and a strong liquidity position of $36.6 billion, an increase of $400 million from year-end 2013.

Although not yet included in the company's total liquidity, Ford is in the process of amending and extending its revolving credit facility. The facility is expected to grow to about $12 billion from $10.7 billion after its anticipated completion at the end of this month. This will improve further the company's strong liquidity position as it expands globally. Consistent with its capital and funding strategy, Ford plans to allocate $2 billion of the facility to Ford Credit to support its liquidity.

"We had a solid quarter, and we are on track with our most aggressive product launch schedule in our history," said Alan Mulally, president and CEO. "Our One Ford plan continues to deliver as we serve customers in more markets around the world with a full family of vehicles committed to best-in-class quality, fuel efficiency, safety, smart design and value."

In the first quarter, Ford increased its quarterly dividend by 25 percent and paid about $500 million in dividends.

Top Stories
Ford Credit
Ford Credit Earns First Quarter 2014 Pre-Tax Profit of $499 Million; Net Income of $312 Million

Ford Motor Credit Company reported a pre-tax profit of $499 million in the first quarter of 2014, compared with $507 million a year earlier.

To read the full article, click here.

Ford News

Mustang's 50th
Thousands Flock to World Headquarters to Celebrate Mustang's 50th

More than 3,000 employees and retirees flocked to Ford World Headquarters Thursday, April 17, to celebrate the 50th anniversary of the iconic Ford Mustang.

Click here to view the event photos on Flickr.

To read the full article, click here.

Ford F-150 Earns KBB Brand Image Award

Ford was honored as Kelley Blue Book's Best Overall Truck Brand at the New York International Auto Show on April 16.

To read the full article, click here.

Ford F-150
All-New 2015 F-150 Durability Forum Reveals Little-Known Facts about New Truck Testing

Ford recently held an F-150 "We Test" forum at the Research and Innovation Center in Dearborn where members of the truck team educated media about the durability, quality and reliability testing Ford conducted to ensure that the all-new 2015 Ford F-150 earned its "Built Ford Tough" badge.

To read the full article, click here.

Lincoln Interior
New 2015 Lincoln Navigator Introduces Higher Level of Automotive Luxury with Ziricote Wood

You'll find it in luxury yachts. Fine furniture. Premium acoustic guitars, too. Now you'll see it in the new 2015 Lincoln Navigator.

To read the full article, click here.

Global Notes
Ford Escort
At Auto China 2014, Ford Highlights Growing China Lineup with All-New Ford Escort, All-New Ford Mustang; Ford Everest Concept Hints at Future SUV

Ford is moving forward with its plan to bring 15 new vehicles to the Chinese market by 2015, and building on its impressive momentum in the Asia Pacific region.

To read the full article, click here.

@Ford Online Team:
Publisher: Sara Tatchio
Associate Publisher: Jenn Corney
Managing Editor: Megan Whalen

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