Blue Oval Connect Newswire: July 24, 2013
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Ford Motor Company 2013 Second-Quarter Financial Results
A Note from President and CEO Alan
Congratulations to the entire Ford team! The strong quarterly financial results we are announcing today – with improved results in every region – are more evidence that our One Ford plan continues to deliver and build momentum.
Thanks to our efforts to serve our customers around the world and deliver profitable growth, we are announcing solid volume, revenue and market share increases in all regions. Importantly, we also are improving our expectations and guidance for full-year profit, Automotive operating margin and operating cash flow.
Our second-quarter earnings are driven by our highest second-quarter and first-half North American profits since at least 2000, our best-ever quarterly profits in Asia Pacific Africa, continued solid performance from Ford Credit and a return to profitability in South America.
Our results also reflect more proof that our transformation plan in Europe is on track to return to profitability by mid-decade, as Europe improved its losses compared with a year ago and the first quarter.
We will continue our laser focus on serving customers with vehicles delivering the 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 below news release and 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.
One Team. One Plan. One Goal. One Ford.
Congratulations and thank you!
President and CEO
Ford Motor Company
Below is an excerpt of the company's press
release regarding Ford Motor Company's 2013
second-quarter financial results. To read the full
Record North America and Asia Pacific Africa Results Drive Ford Pre-Tax
Profit of $2.6 Billion, Net Income of $1.2 Billion; All Regions Improve
DEARBORN, Mich., July 24, 2013 – Ford Motor Company [NYSE: F] reported second quarter 2013 pre-tax profits of $2.6 billion, reflecting improvement by all business units compared with a year ago. North America, the company's largest region, set records for second quarter and first half pre-tax profits. Asia Pacific Africa, the company's fastest-growing region, achieved its best-ever quarterly pre-tax profit. Ford Credit once again delivered solid performance, with pre-tax operating profit of $454 million, and South America returned to profitability.
Total company second quarter pre-tax profit of $2.6 billion, or 45 cents per share, was $726 million, or 15 cents per share, higher compared with a year ago. The second-quarter profit reflected continued outstanding performance in North America, recovery in South America from the exchange-driven loss in the first quarter, very good progress in Europe in continuing to deliver the company's transformation plan and the best-ever profit in Asia Pacific Africa. Net income for the second quarter of $1.2 billion, or 30 cents per share, was $193 million, or 4 cents per share, higher than a year ago.
Automotive operating-related cash flow was $3.3 billion, an increase of $2.5 billion compared with last year, marking the 13th consecutive quarter of positive performance. The company ended the second quarter with strong liquidity of $37.1 billion, an increase of $2.6 billion compared with the end of the first quarter of 2013.
"Our strong second quarter with improved results in every region around the world is another proof point that our One Ford plan is continuing to deliver and is building momentum," said Alan Mulally, Ford president and CEO. "We remain absolutely committed to our plan of serving customers in all markets with a full family of vehicles offering the very best quality, fuel efficiency, safety, smart design and value. As we do, we are providing profitable growth for everyone associated with Ford."
In the second quarter, the company settled $1.5 billion of pension obligations related to the U.S. salaried retiree voluntary lump-sum program, with $2.7 billion settled since the inception of the program in August 2012. As a result of the second quarter settlement, the company recognized a special item charge of $294 million, reflecting the acceleration of unrecognized losses in the plan. The lump-sum program is about 60 percent complete and concludes at the end of the year.
As a result of the strategic actions the company has been taking, along with recent increases in discount rates, the funded status of Ford's global funded pension plans significantly improved as of June 30 compared with the end of last year.
Dividends paid in the second quarter totaled about $400 million.
Celebrate Henry Ford's 150th
Come to the Henry Ford Estate in Dearborn, Mich., to celebrate the life and legacy of an American icon. On Saturday, July 27, 2013 from 10 a.m. to 4 p.m., the estate will host an event that includes live music, a farmer's market, European-style biergarten, historic vehicles and much more. Admission is free.
For more information, go to www.henryford150.com or call 313.884.4222.
@Ford Online Team:
Publisher: Sara Tatchio
Associate Publisher: Jenn Corney
Managing Editor: Megan Whalen
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