Ford Motor Company (F)

[farooq]

Ford results
https://media.ford.com/content/dam/fordmedia/North%20America/US/2017/07/26/q2-2017.pdf


2 0 17 S E C O N D Q U A R T E R F I N A N C I A L R E S U LT S
“This quarter shows the underlying health
of our company with strong products like
F-Series and commercial vehicles around
the world, but we have opportunity to
deliver even more. The entire team is
focused on improving the fitness of the
business and smartly deploying our
capital to improve both the top and
bottom lines in the quarters ahead.”
Jim Hackett, President & CEO
Revenue Net Income Adjusted Pre-Tax Profit EPS Adjusted EPS Auto Segment Auto Segment Operating
(GAAP) (GAAP) (Non-GAAP) (GAAP) (Non-GAAP) Operating Margin (GAAP) Cash Flow (GAAP)
$39.9B $2.0B $2.5B $0.51 $0.56 5.9% $1.3B
$0.4B $0.1B $(0.5)B $0.02 $0.04 (1.8) ppts $(2.9)B
? Second quarter net income was $2.0B, total company revenue
was $39.9B; EPS was $0.51, all up year over year

Total Company adjusted pre-tax profit of $2.5B and lower
tax rate drove adjusted EPS of $0.56, up $0.04 year over year

Lower adjusted pre-tax profit due to higher commodity cost,
mainly steel, unfavorable exchange and non-repeat of last
year’s gain on the sale of majority stake in OEConnection LLC

In the U.S.: Year-over-year average transaction prices rose
nearly five times the industry average in the quarter and
incentives declined as a percent of vehicle price, while the
industry increased
Automotive profits driven by North America, with Europe and
Asia Pacific also profitable; outside North America, other
regions were about break even in total; Ford Credit pre-tax profit
was $619M, up 55 percent year over year

Automotive operating cash flow was positive; continue to expect
full-year shareholder distributions of about $2.7B

2017: Expect full year adjusted EPS of $1.65 to $1.85 with
adjusted effective tax rate now expected to be about 15 percent


F-Series
In the U.S. F-Series had its
best second quarter sales
performance since 2001,
with a 7 percent gain
compared to last year.
Average transaction prices
of $45,400 per truck were
up $3,100 from a year ago
and led the segment.


Lincoln
Lincoln had strong 2Q sales
in both the U.S. and China,
selling more than 29,000
vehicles in the U.S. for the
brand’s best performance
in a decade. In China, the
brand capped its best ever
quarter with record June
sales, up 84 percent.
Quality
Ford earned the No. 2
ranking of all non-premium
brands in this year’s U.S.
J.D. Power Initial Quality
Study – the brand’s best
ranking in the report’s 31-
year history. Seven Ford and
Lincoln models were in the
top three of their segments.
Over-the-Air Updates
Ford offered its first
software update via Wi-Fi
with a SYNC 3 update that
brings support for Android
Auto and Apple CarPlay to
more than 800,000
model-year 2016 vehicles.