April 24, 2012

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Announcements

@Ford Online Outage


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Financial Results
Ford Motor Company 2013 First-Quarter Financial Results

A Note from President and CEO Alan Mulally

Congratulations to the entire Ford team for continuing to deliver our One Ford plan, serving our customers around the world and delivering profitable growth. Thanks to our efforts, we today are announcing strong quarterly financial results, built on solid growth in volume and revenue.

Our earnings are driven by our highest North American profit since at least 2000 – when we began reporting results for the region as a separate business unit – and continued solid performance from Ford Credit.

Our results reflect more proof that our investments in Asia Pacific Africa are paying off, as we post record first quarter market share in the region and in China. They also reflect continued implementation of our transformation plan in Europe – which is on track to return to profitability by mid-decade – as well as expanding our global product portfolio and working on all areas of the business for further improvement in South America, as we address the challenging business environment in that region.

We will continue to take advantage of opportunities and address challenges around the world by staying 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
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.

We also will discuss our results, accomplishments, challenges and opportunities during today's Global Town Hall at 11 a.m. EDT U.S. (12 p.m. São Paulo, 5 p.m. Cologne, 11 p.m. Shanghai).

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

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 2013 first-quarter financial results. To read the full release with charts, click here.

Ford Posts First Quarter Pre-Tax Profit of $2.1 Billion, Driven by Highest North America Profit in More than a Decade; Net Income of $1.6 Billion

DEARBORN - Ford Motor Company today reported first quarter 2013 pre-tax profit of $2.1 billion, driven by record results from North America and continued solid performance from Ford Credit.

Total company first quarter pre-tax profit of $2.1 billion, or 41 cents per share, was $147 million lower than a year ago, more than explained by Europe and South America. Net income for the first quarter of $1.6 billion, or 40 cents per share, was $215 million higher than a year ago.

Ford generated positive Automotive operating-related cash flow of $700 million in the first quarter — the 12th consecutive quarter of positive performance — with strong liquidity of $34.5 billion unchanged from year-end 2012.

As part of Ford's previously announced strategy to de-risk its pension obligations, the company made $1.8 billion in cash contributions to its worldwide funded plans during the quarter. This included $1.2 billion of discretionary contributions, in line with Ford's long-term pension de-risking strategy.

Dividends paid in the quarter totaled about $400 million.

"Our strong first quarter results provide further proof that our One Ford plan continues to deliver," said Alan Mulally, Ford president and CEO. "Our plan remains centered on serving customers in all markets around the world with a full family of vehicles — small, medium and large; cars, utilities and trucks — each with the very best quality, fuel efficiency, safety, smart design and value."

AUTOMOTIVE SECTOR

For the first quarter of 2013, Ford's wholesale volume and revenue were each about 10 percent higher than a year ago, driven primarily by strong performance in North America and Asia Pacific Africa.

The decrease in total Automotive pre-tax profit and operating margin for the first quarter is explained by Europe and South America.

Ford North America

Ford North America experienced strong growth in the first quarter, with wholesale volume up 17 percent from the same period a year ago, and revenue improving 20 percent.

Ford North America's pre-tax profit, which was a record for any quarter since at least 2000 when the company began reflecting the region as a separate business unit, increased from the same period a year ago due to favorable market factors, offset partially by higher costs that reflect the company's investment in new products and growth, as well as higher pension and OPEB expense. These same factors drove Ford North America's operating margin of 11 percent — the fourth quarter out of the last five that the region produced double-digit operating margins.

For full year 2013, Ford's guidance for North America remains unchanged — the company expects strong performance to continue, with pre-tax profit expected to be higher than 2012 and operating margin of about 10 percent.

Ford South America

The decrease in Ford South America's pre-tax results and operating margin in the first quarter was more than explained by unfavorable exchange, most of which related to Venezuela, including the impact of the devaluation of the bolivar. Currency weakening in Argentina was also a factor.

For full year 2013, the company's guidance remains unchanged, with Ford South America expected to be about breakeven. The external environment is uncertain, however, particularly in Venezuela and Argentina. There is a risk that this could adversely affect the company's ability to deliver full year breakeven results for the region.

"We continue to implement our One Ford plan in South America to address the challenging business environment in the region," said Bob Shanks, Ford executive vice president and chief financial officer. "We are confident in the strength of our new global products and we are expanding our product portfolio while looking at all areas of our business to improve operating results."

Ford Europe

The decline in Ford Europe's first quarter pre-tax results primarily reflected higher structural costs, including restructuring effects (principally accelerated depreciation), and higher pension expense due to lower discount rates. Market factors and exchange also were unfavorable.

The company's European transformation plan announced in October 2012 is proceeding on track, with solid progress made during the first quarter of 2013. Ford’s unprecedented product acceleration is on pace, with five new passenger vehicles and two new commercial vehicles introduced since the plan was announced. These new vehicles are off to a strong sales start. The company increased retail market share for the five major markets in Western Europe, which is critical to margins, residuals and brand health, and made strides on quality and customer satisfaction.

Ford also made progress on cost efficiencies during the first quarter, including plans to restructure its manufacturing footprint within the region. The company’s discussions are progressing with unions at Southampton assembly and Dagenham stamping and tooling operations in the U.K. toward closure mid-year. Discussions also are progressing at Ford's assembly plant in Genk, Belgium, where hourly employees recently ratified a package of proposed separation benefits, and salaried employees now have reached agreement on a tentative proposal subject to ratification. As the information and consultation process moves forward, normal vehicle production levels at the plant have resumed.

Full year 2013 guidance for Europe remains unchanged, with the company expecting a loss of about $2 billion. The outlook for the business environment in Europe remains uncertain. While it is possible that economic and industry conditions will begin to stabilize later this year, recent economic indicators are mixed. Despite the challenging environment, the company is progressing toward its goal of a profitable, growing Ford Europe by mid-decade.

Ford Asia Pacific Africa

Ford Asia Pacific Africa showed strong growth in wholesale volume and revenue, gaining market share in this growing industry. Ford’s first quarter market share for Asia Pacific Africa was 3 percent, a 30 percent improvement from a year ago; in China, the company's market share improved more than a percentage point compared with a year ago, setting a first quarter record of 3.6 percent.

The improvement in Ford Asia Pacific Africa's pre-tax results and operating margin mainly reflected favorable market factors, as well as higher royalties and subsidiary profits. These positive factors were largely offset by the company’s investments for future growth in the region.

For full year 2013, the company's guidance for Ford Asia Pacific Africa remains unchanged at about breakeven. While Ford expects to deliver strong growth in volume, share and revenue during 2013, costs will continue to largely offset these positive effects as the company continues to invest in an expanded product lineup, new plants in China and India, and people to implement the company's growth plan.
 


Top Stories

Blue Oval
Ford Credit Reports First Quarter Pre-Tax Profit of $507 Million; Net Income of $364 Million

Ford Motor Credit Company reported a pre-tax profit of $507 million in the first quarter of 2013, compared with $452 million a year earlier. The increase in pre-tax earnings is primarily explained by higher receivables and favorable residual performance, offset partially by lower credit loss reserve reductions. Ford Credit’s net income was $364 million in the first quarter, compared with $295 million in the previous year.

To read the full article, click here.

 



Ford News
California
Ford COO Mark Fields Named 2013-2014 Campaign Chair for United Way for Southeastern Michigan

Ford Motor Company Chief Operating Officer Mark Fields has been named 2013-2014 Campaign Chair for United Way for Southeastern Michigan.

To read the full article, click here.

 

Food Tripping App
Ford and SHFT.com Celebrate Earth Day with the Launch of New 'Food Tripping' App

Ford Motor Company and SHFT.com, the sustainable media platform that curates the best in design, art, food, film and music, celebrate Earth Day 2013 with the launch of "Food Tripping," a free app allowing users to find a broad range of fresh, local, seasonal, healthy food options on the go.

To read the full article, click here.

 

Go Further
Ranger to the Rescue
Go Further: Ranger to the Rescue

When Hardy de Kock, Ford South Africa's 4x4 training manager, and his team were taking the Ranger Odyssey on its first recce with some torque testing in the dunes of Xai Xai, they never expected to be show Ford’s true go gurther spirit.

To read the full article, click here

Global Notes
Fiesta ST
Fiesta ST Orders Flood In

The new Ford Fiesta ST is just now reaching dealer showrooms, but since prices were announced at the end of January, over 1,000 UK customers have already placed an order.

To read the full article, click here.

Ford Fusion Hybrid
Ford's Cologne-Niehl Plant Produces Seven-Millionth Fiesta

Ford's Cologne-Niehl plant is celebrating an historic milestone after producing seven million Ford Fiestas.

To read the full article, click here.

 

FERA
Ford Employees Recreation Association (FERA)

Location:
East Concourse (between the cafeteria and auditorium) Ford World Headquarters Tuesday, Thursday and Friday
Ford Conference Event Center Wednesday (on Village Road across from The Henry Ford)

Desk hours:
10:30 a.m. to 1:30 p.m.

Club Information:
Find a club that's right for you we have 45 Clubs!
If you don't find what you are looking for we can help you organize one!

Fun and Travel FERA Discounts:
Cedar Point Tickets
Kings Island Tickets
Golf Michigan Play Books
Travel Cruises and Resorts

For more FERA information, click to http://www.fera.org/.

 

Directory
Directory Information
Phone numbers and email addresses for important Ford Motor Company contacts can be found on @Ford Online at: http://www.at.ford.com/B2B/Pages/Directory2.aspx.

For benefit questions, please contact the NESC at 1-800-248-4444 or email NESC@ford.com.


Retiree Club Info
Retiree Club Information Now Online

A complete list of retiree club information and group meetings has been relocated to an @Ford Online web page.

Click here to check out the listing of retiree clubs and groups, as well as upcoming meeting dates shared with the Blue Oval Connect team.

If you have any questions or concerns, please send an email to blueoval@ford.com.


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