1-3950 | 38-0549190 |
(Commission File Number) | (IRS Employer Identification No.) |
One American Road, Dearborn, Michigan | 48126 |
(Address of principal executive offices) | (Zip Code) |
Designation | Description | Method of Filing |
Exhibit 99 | News release dated April 24, 2013 | Filed with this Report |
FORD MOTOR COMPANY | ||
(Registrant) | ||
Date: April 24, 2013 | By: | /s/ Louis J. Ghilardi |
Louis J. Ghilardi | ||
Assistant Secretary |
* | Any reference in the attached exhibit(s) to our corporate website(s) and/or other social media sites or platforms, and the contents thereof, is provided for convenience only; such websites or platforms and the contents thereof are not incorporated by reference into this Report nor deemed filed with the Securities and Exchange Commission. |
Designation | Description |
Exhibit 99 | News release dated April 24, 2013 |
| | NEWS | ||||
www.facebook.com/ford | www.twitter.com/ford |
• | Strong total company pre-tax profit was $2.1 billion, or 41 cents per share, a decrease of $147 million from a year ago; 15th consecutive quarter of profitability |
• | Net income was $1.6 billion, or 40 cents per share, an increase of $215 million compared with a year ago |
• | Positive Automotive operating-related cash flow was $700 million for the quarter — the 12th consecutive quarter of positive cash flow — with strong liquidity of $34.5 billion, unchanged from year-end 2012 |
• | Wholesale volume and total company revenue each grew about 10 percent compared with a year ago, including market share gains in North America and Asia Pacific Africa |
• | North America pre-tax profit was a record $2.4 billion — the highest quarterly profit since at least 2000, when the company began reflecting the region as a separate business unit — with an operating margin of 11 percent. Ford also reported a small pre-tax profit for Asia Pacific Africa, and losses in Europe and South America |
• | Ford Credit continued its solid performance with a first quarter pre-tax profit of $507 million |
• | For full year 2013, the company’s guidance remains unchanged — Ford expects another strong year, with total company pre-tax profit about equal to 2012, operating margin about equal to or lower than 2012, and Automotive operating-related cash flow higher than 2012 |
Financial Results Summary + | First Quarter | |||||||||||
2012 | 2013 | B/(W) 2012 | ||||||||||
Wholesales (000) | 1,358 | 1,497 | 139 | |||||||||
Revenue (Bils.) | $ | 32.4 | $ | 35.8 | $ | 3.4 | ||||||
Operating Results | ||||||||||||
Pre-tax results (Mils.)++ | $ | 2,293 | $ | 2,146 | $ | (147 | ) | |||||
After-tax results (Mils.)+++ | 1,578 | 1,642 | 64 | |||||||||
Earnings per share+++ | 0.39 | 0.41 | 0.02 | |||||||||
Special items pre-tax (Mils.) | $ | (255 | ) | $ | (23 | ) | $ | 232 | ||||
Net income attributable to Ford | ||||||||||||
After-tax results (Mils.) | $ | 1,396 | $ | 1,611 | $ | 215 | ||||||
Earnings per share | 0.35 | 0.40 | 0.05 | |||||||||
Automotive | ||||||||||||
Operating-related cash flow (Bils.) | $ | 0.9 | $ | 0.7 | $ | (0.2 | ) | |||||
Gross cash (Bils.) | $ | 23.0 | $ | 24.2 | $ | 1.2 | ||||||
Debt (Bils.) | (13.7 | ) | (16.0 | ) | (2.3 | ) | ||||||
Net cash (Bils.) | $ | 9.3 | $ | 8.2 | $ | (1.1 | ) |
First Quarter | ||||||||||||
2012 | 2013 | B/(W) 2012 | ||||||||||
Wholesales (000) | 1,358 | 1,497 | 139 | |||||||||
Revenue (Bils.) | $ | 30.5 | $ | 33.9 | $ | 3.4 | ||||||
Pre-tax results (Mils.) | $ | 1,837 | $ | 1,643 | $ | (194 | ) | |||||
Operating Margin (Pct.) | 6.4 | % | 5.2 | % | (1.2) pts. |
First Quarter | ||||||||||||
2012 | 2013 | B/(W) 2012 | ||||||||||
Wholesales (000) | 651 | 761 | 110 | |||||||||
Revenue (Bils.) | $ | 18.6 | $ | 22.3 | $ | 3.7 | ||||||
Pre-tax results (Mils.) | $ | 2,133 | $ | 2,442 | $ | 309 | ||||||
Operating Margin (Pct.) | 11.5 | % | 11.0 | % | (0.5) pts. |
First Quarter | ||||||||||||
2012 | 2013 | B/(W) 2012 | ||||||||||
Wholesales (000) | 118 | 113 | (5 | ) | ||||||||
Revenue (Bils.) | $ | 2.4 | $ | 2.3 | $ | (0.1 | ) | |||||
Pre-tax results (Mils.) | $ | 54 | $ | (218 | ) | $ | (272 | ) | ||||
Operating Margin (Pct.) | 2.3 | % | (9.4 | )% | (11.7) pts. |
First Quarter | ||||||||||||
2012 | 2013 | B/(W) 2012 | ||||||||||
Wholesales (000) | 372 | 341 | (31 | ) | ||||||||
Revenue (Bils.) | $ | 7.2 | $ | 6.7 | $ | (0.5 | ) | |||||
Pre-tax results (Mils.) | $ | (149 | ) | $ | (462 | ) | $ | (313 | ) | |||
Operating Margin (Pct.) | (2.0 | )% | (6.9 | )% | (4.9) pts. |
First Quarter | ||||||||||||
2012 | 2013 | B/(W) 2012 | ||||||||||
Wholesales (000) | 217 | 282 | 65 | |||||||||
Revenue (Bils.) | $ | 2.3 | $ | 2.6 | $ | 0.3 | ||||||
Pre-tax results (Mils.) | $ | (95 | ) | $ | 6 | $ | 101 | |||||
Operating Margin (Pct.) | (4.2 | )% | 0.2 | % | 4.4 pts. |
First Quarter | ||||||||||||
2012 | 2013 | B/(W) 2012 | ||||||||||
Revenue (Bils.) | $ | 1.9 | $ | 1.9 | $ | — | ||||||
Ford Credit pre-tax results (Mils.) | $ | 452 | $ | 507 | $ | 55 | ||||||
Other Financial Services pre-tax results (Mils.) | 4 | (4 | ) | (8 | ) | |||||||
Financial Services pre-tax results (Mils.) | $ | 456 | $ | 503 | $ | 47 |
Full Year | ||||||||
First Quarter | 2012 | 2013 | ||||||
2013 Results | Results | Plan | Outlook | |||||
Planning Assumptions | ||||||||
Industry Volume* -- U.S. (Mils.) | 15.6 | 14.8 | 15.0 - 16.0 | Unchanged | ||||
Industry Volume* -- Europe (Mils.)** | 13.3 | 14.0 | 13.0 - 14.0 | 13.0 - 13.5 | ||||
Industry Volume* -- China (Mils.) | 20.7 | 19.0 | 19.5 - 21.5 | Unchanged | ||||
Operational Metrics | ||||||||
Compared with Prior Year: | ||||||||
- U.S. Market Share | 15.9% | 15.2% | Higher | Unchanged | ||||
- Europe Market Share** | 7.7% | 7.9% | About Equal | Unchanged | ||||
- China Market Share*** | 3.6% | 3.2% | Higher | Unchanged | ||||
- Quality | Mixed | Mixed | Improve | Unchanged | ||||
Financial Metrics | ||||||||
Compared with Prior Year: | ||||||||
- Total Company Pre-Tax Operating Profit (Bils.)**** | $2.1 | $8.0 | About Equal | Unchanged | ||||
- Automotive Operating Margin**** | 5.2% | 5.3% | About Equal / Lower | Unchanged | ||||
- Automotive Operating-Related Cash Flow (Bils.) | $0.7 | $3.4 | Higher | Unchanged | ||||
* | Includes medium and heavy trucks | |||||||
** | The 19 markets we track | |||||||
*** | Includes Ford and JMC brand vehicles produced in China by unconsolidated affiliates | |||||||
**** | Excludes special items; Automotive operating margin is defined as Automotive pre-tax results, excluding special items and Other Automotive, divided by Automotive revenue | |||||||
• | Aggressively restructuring to operate profitably at the current demand and changing model mix |
• | Accelerating the development of new products that customers want and value |
• | Financing the plan and improving the balance sheet |
• | Working together effectively as one team, leveraging Ford’s global assets |
+ | The financial results discussed herein are presented on a preliminary basis; final data will be included in Ford’s Quarterly Report on Form 10-Q for the period ended Mar. 31, 2013. The following information applies to the information throughout this release: |
• | Pre-tax operating results exclude special items unless otherwise noted. |
• | See tables following the “Safe Harbor/Risk Factors” for the nature and amount of special items, and reconciliation of items designated as “excluding special items” to U.S. generally accepted accounting principles (“GAAP”). Also see the tables for reconciliation to GAAP of Automotive gross cash, operating-related cash flow and net interest. |
• | Discussion of overall Automotive cost changes is measured primarily at present-year exchange and excludes special items and discontinued operations; in addition, costs that vary directly with production volume, such as material, freight, and warranty costs, are measured at present-year volume and mix. |
• | Wholesale unit sales and production volumes include the sale or production of Ford-brand and JMC-brand vehicles by unconsolidated affiliates. JMC refers to our Chinese joint venture, Jiangling Motors Corporation. See materials supporting the Apr. 24, 2013 conference calls at www.shareholder.ford.com for further discussion of wholesale unit volumes. |
++ | Excludes special items. |
+++ | Excludes special items and “Income/(Loss) attributable to non-controlling interests.” See tables following “Safe Harbor/Risk Factors” for the nature and amount of these special items and reconciliation to GAAP. |
• | Decline in industry sales volume, particularly in the United States or Europe, due to financial crisis, recession, geopolitical events, or other factors; |
• | Decline in Ford's market share or failure to achieve growth; |
• | Lower-than-anticipated market acceptance of Ford's new or existing products; |
• | Market shift away from sales of larger, more profitable vehicles beyond Ford's current planning assumption, particularly in the United States; |
• | An increase in or continued volatility of fuel prices, or reduced availability of fuel; |
• | Continued or increased price competition resulting from industry excess capacity, currency fluctuations, or other factors; |
• | Fluctuations in foreign currency exchange rates, commodity prices, and interest rates; |
• | Adverse effects resulting from economic, geopolitical, or other events; |
• | Economic distress of suppliers that may require Ford to provide substantial financial support or take other measures to ensure supplies of components or materials and could increase costs, affect liquidity, or cause production constraints or disruptions; |
• | Work stoppages at Ford or supplier facilities or other limitations on production (whether as a result of labor disputes, natural or man-made disasters, tight credit markets or other financial distress, production constraints or difficulties, or other factors); |
• | Single-source supply of components or materials; |
• | Labor or other constraints on Ford's ability to maintain competitive cost structure; |
• | Substantial pension and postretirement health care and life insurance liabilities impairing our liquidity or financial condition; |
• | Worse-than-assumed economic and demographic experience for postretirement benefit plans (e.g., discount rates or investment returns); |
• | Restriction on use of tax attributes from tax law "ownership change;" |
• | The discovery of defects in vehicles resulting in delays in new model launches, recall campaigns, or increased warranty costs; |
• | Increased safety, emissions, fuel economy, or other regulations resulting in higher costs, cash expenditures, and/or sales restrictions; |
• | Unusual or significant litigation, governmental investigations, or adverse publicity arising out of alleged defects in products, perceived environmental impacts, or otherwise; |
• | A change in requirements under long-term supply arrangements committing Ford to purchase minimum or fixed quantities of certain parts, or to pay a minimum amount to the seller ("take-or-pay" contracts); |
• | Adverse effects on results from a decrease in or cessation or clawback of government incentives related to investments; |
• | Inherent limitations of internal controls impacting financial statements and safeguarding of assets; |
• | Cybersecurity risks to operational systems, security systems, or infrastructure owned by Ford, Ford Credit, or a third-party vendor or supplier; |
• | Failure of financial institutions to fulfill commitments under committed credit and liquidity facilities; |
• | Inability of Ford Credit to access debt, securitization, or derivative markets around the world at competitive rates or in sufficient amounts, due to credit rating downgrades, market volatility, market disruption, regulatory requirements, or other factors; |
• | Higher-than-expected credit losses, lower-than-anticipated residual values, or higher-than-expected return volumes for leased vehicles; |
• | Increased competition from banks or other financial institutions seeking to increase their share of financing Ford vehicles; and |
• | New or increased credit, consumer, or data protection or other regulations resulting in higher costs and/or additional financing restrictions. |
• | At 9 a.m. EDT, Alan Mulally, Ford president and CEO, and Bob Shanks, Ford executive vice president and chief financial officer, will host a conference call for the investment community and news media to discuss the 2013 first quarter financial results. |
• | At 11 a.m. EDT, Neil Schloss, Ford vice president and treasurer, Stuart Rowley, Ford vice president and controller, and Mike Seneski, chief financial officer, Ford Motor Credit Company, will host a conference call for fixed income analysts and investors. |
Contact(s): | Media: | Equity Investment | Fixed Income | Shareholder | ||
Community: | Investment Community: | Inquiries: | ||||
Jay Cooney | Larry Heck | Molly Tripp | 1.800.555.5259 | |||
1.313.319.5477 | 1.313.594.0613 | 1.313.621.0881 | 1.313.845.8540 | |||
jcoone17@ford.com | fordir@ford.com | fixedinc@ford.com | stockinf@ford.com | |||
TOTAL COMPANY | ||||||||
CALCULATION OF EARNINGS PER SHARE | ||||||||
First Quarter 2013 | ||||||||
Net Income Attributable to Ford | After-Tax Operating Results Excl. Special Items* | |||||||
After-Tax Results (Mils.) | ||||||||
After-tax results* | $ | 1,611 | $ | 1,642 | ||||
Effect of dilutive 2016 Convertible Notes** | 13 | 13 | ||||||
Effect of dilutive 2036 Convertible Notes** | — | — | ||||||
Diluted after-tax results | $ | 1,624 | $ | 1,655 | ||||
Basic and Diluted Shares (Mils.) | ||||||||
Basic shares (Average shares outstanding) | 3,923 | 3,923 | ||||||
Net dilutive options | 49 | 50 | ||||||
Dilutive 2016 Convertible Notes | 97 | 97 | ||||||
Dilutive 2036 Convertible Notes | 3 | 3 | ||||||
Diluted shares | 4,072 | 4,073 | ||||||
EPS (Diluted) | $ | 0.40 | $ | 0.41 | ||||
* | Excludes Income/(Loss) attributable to non-controlling interests; special items detailed on page 10 | |||||||
** | As applicable, includes interest expense, amortization of discount, amortization of fees, and other changes in income or loss that result from the application of the if-converted method for convertible securities |
TOTAL COMPANY | ||||||||
INCOME FROM CONTINUING OPERATIONS | ||||||||
First Quarter | ||||||||
2012 | 2013 | |||||||
(Mils.) | (Mils.) | |||||||
North America | $ | 2,133 | $ | 2,442 | ||||
South America | 54 | (218 | ) | |||||
Europe | (149 | ) | (462 | ) | ||||
Asia Pacific Africa | (95 | ) | 6 | |||||
Other Automotive | (106 | ) | (125 | ) | ||||
Total Automotive (excl. special items) | $ | 1,837 | $ | 1,643 | ||||
Special items -- Automotive | (255 | ) | (23 | ) | ||||
Total Automotive | $ | 1,582 | $ | 1,620 | ||||
Financial Services | 456 | 503 | ||||||
Pre-tax results | $ | 2,038 | $ | 2,123 | ||||
(Provision for)/Benefit from income taxes | (640 | ) | (511 | ) | ||||
Net income | $ | 1,398 | $ | 1,612 | ||||
Less: Income/(Loss) attributable to non-controlling interests | 2 | 1 | ||||||
Net income attributable to Ford | $ | 1,396 | $ | 1,611 | ||||
Memo: Excluding special items | ||||||||
Pre-tax results | $ | 2,293 | $ | 2,146 | ||||
(Provision for)/Benefit from income taxes | (713 | ) | (503 | ) | ||||
Less: Income/(Loss) attributable to non-controlling interests | 2 | 1 | ||||||
After tax results | $ | 1,578 | $ | 1,642 |
TOTAL COMPANY | ||||||||
SPECIAL ITEMS | ||||||||
First Quarter | ||||||||
2012 | 2013 | |||||||
(Mils.) | (Mils.) | |||||||
Personnel and Dealer-Related Items | ||||||||
Separation-related actions* | $ | (233 | ) | $ | (8 | ) | ||
Mercury discontinuation / Other dealer actions | (16 | ) | — | |||||
Total Personnel and Dealer-Related Items | $ | (249 | ) | $ | (8 | ) | ||
Other Items | ||||||||
Ford Romania consolidation loss | $ | — | $ | (15 | ) | |||
Other | (6 | ) | — | |||||
Total Other Items | $ | (6 | ) | $ | (15 | ) | ||
Total Special Items | $ | (255 | ) | $ | (23 | ) | ||
Tax Special Items | $ | 73 | $ | (8 | ) | |||
Memo: | ||||||||
Special Items impact on earnings per share** | $ | (0.04 | ) | $ | (0.01 | ) | ||
* | Includes pension-related special items | |||||||
** | Includes related tax effect on special items and tax special items |
PRODUCTION VOLUMES* | ||||||||
2013 | ||||||||
First Quarter | Second Quarter | |||||||
Actual | Forecast | |||||||
Units | O/(U) 2012 | Units | O/(U) 2012 | |||||
(000) | (000) | (000) | (000) | |||||
North America | 784 | 107 | 800 | 63 | ||||
South America | 111 | 14 | 140 | 40 | ||||
Europe | 386 | (32) | 390 | 21 | ||||
Asia Pacific Africa | 286 | 73 | 315 | 71 | ||||
Total | 1,567 | 162 | 1,645 | 195 | ||||
* Includes Ford brand and JMC brand vehicles to be produced by unconsolidated affiliates |
NET INTEREST RECONCILIATION TO GAAP | |||||||
First Quarter | |||||||
2012 | 2013 | ||||||
(Mils.) | (Mils.) | ||||||
Interest expense | $ | (185 | ) | $ | (206 | ) | |
Interest income | 87 | 44 | |||||
Subtotal | $ | (98 | ) | $ | (162 | ) | |
Adjusted for items included / excluded from net interest: | |||||||
Include: Gains/(Losses) on cash equivalents & marketable securities* | 26 | 14 | |||||
Include: Gains/(Losses) on extinguishment of debt | — | (18 | ) | ||||
Other | (18 | ) | (23 | ) | |||
Net Interest | $ | (90 | ) | $ | (189 | ) | |
* Excludes mark-to-market adjustments of our investment in Mazda |
AUTOMOTIVE SECTOR | ||||||||||||
GROSS CASH RECONCILIATION TO GAAP | ||||||||||||
Mar. 31, | Dec. 31, | Mar. 31, | ||||||||||
2012 | 2012 | 2013 | ||||||||||
(Bils.) | (Bils.) | (Bils.) | ||||||||||
Cash and cash equivalents | $ | 7.3 | $ | 6.2 | $ | 6.0 | ||||||
Marketable securities | 15.8 | 18.2 | 18.2 | |||||||||
Total cash and marketable securities | $ | 23.1 | $ | 24.4 | $ | 24.2 | ||||||
Securities in transit* | (0.1 | ) | (0.1 | ) | — | |||||||
Gross cash | $ | 23.0 | $ | 24.3 | $ | 24.2 | ||||||
* | The purchase or sale of marketable securities for which the cash settlement was not made by period end and for which there was a payable or receivable recorded on the balance sheet at period end |
AUTOMOTIVE SECTOR | ||||||||
OPERATING-RELATED CASH FLOWS RECONCILIATION TO GAAP | ||||||||
First Quarter | ||||||||
2012 | 2013 | |||||||
(Bils.) | (Bils.) | |||||||
Cash flows from operating activities of continuing operations | $ | 0.9 | $ | 0.7 | ||||
Items included in operating-related cash flows | ||||||||
Capital expenditures | (1.1 | ) | (1.5 | ) | ||||
Net cash flows from non-designated derivatives | (0.1 | ) | (0.2 | ) | ||||
Items not included in operating-related cash flows | ||||||||
Cash impact of Job Security Benefits and personnel-reduction actions | 0.1 | 0.1 | ||||||
Pension contributions | 1.1 | 1.8 | ||||||
Tax refunds and tax payments from affiliates | (0.1 | ) | (0.3 | ) | ||||
Other | 0.1 | 0.1 | ||||||
Operating-related cash flows | $ | 0.9 | $ | 0.7 |