Ford Motor Company F reported its third quarter earnings on Friday. Shares of the company are down a whopping 4 percent.
Below are some key highlights and takeaways from its conference call.
Performance and Progress:
• Our results this quarter are underpinned once again by our One Ford plan, which remains unchanged.
• We're continuing to focus on all four elements of our plan. They served us well and will continue to be our focus going forward.
• In many ways, we're just starting to see the full benefits and strength of One Ford, and we intend to maximize these opportunities going forward.
• The quarter was our 21st consecutive profitable quarter, and we ended the period with strong liquidity.
• Automotive operating related cash flow, however, was negative due to unfavorable changes in working capital, including product launch effects.
• Third quarter wholesale volume and revenue declined year-over-year by 3% and 2% respectively.
• Market share, however, was higher in Europe and a third quarter of record in Asia-Pacific, where we once again delivered a record share in China.
• North America and Asia-Pacific were profitable, but pre-tax results were lower than a year ago for all of our automotive business units, except Middle East and Africa.
• Ford Credit delivered strong results that were better than a year ago.
• Company pre-tax profit was in line with our expectation and consistent with the guidance we provided at the September Investor Day.
• Looking ahead 12 of our 23 global product launches are now complete.
• And the balance are continuing to progress including the all new F-150.
• And these launches along with the 16 planned for 2015, are expected to result next year in higher revenue, improved operating margin and the company pre-tax profit of $8.5 billion to $9.5 billion.
• Other third quarter highlights include the startup production of several products including the all new 2015 Mustang and the Lincoln MKZ and MKC for China.
• We also announced the new C-Max, Grand C-Max and S-Max in Europe.
• We also announced that we're bringing 25 new vehicles to Middle East and Africa by 2016.
• Seven Ford vehicles finished in the top three of their segment in the J.D. Power APEAL Study.
• We were active in job creation including new jobs in Kansas City, Louisville and Asia-Pacific to support our growth initiatives.
Guidance:
• Full year guidance is unchanged for all business units and consistent with our Investor Day outlook.
• Our company guidance for 2014 is detailed on slide 23.
• We now expect full year industry volume of about 16.8 million units in the U.S., about 14.5 million units in the Europe 20 markets and about 23.8 million units in China.
• In terms of our financial performance, we continue to expect automotive revenue to be about equal to 2013.
• Automotive operating margin to be lower than 2013.
• Automotive operating-related cash flow to be lower than 2013 including capital spending of about $7.5 billion.
• Ford Credit pre-tax profit of $1.8 billion to $1.9 billion and company pre-tax profit of about $6 billion.
• 2014 is a critical next step in implementing our One Ford plan to deliver profitable growth for all, including strong growth and much improved financial results in 2015 and beyond.
• As we communicated at our Investor Day event, we expect 2015 company pre-tax profit to be in the $8.5 billion to $9.5 billion range.
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