Ford Posts Highest Fourth Quarter Pre-Tax Profit in More Than a Decade; Full Year Pre-Tax Profit of $8 Billion and Net Income of
Ford Posts Highest Fourth Quarter Pre-Tax Profit in More Than a Decade; Full
Year Pre-Tax Profit of $8 Billion and Net Income of $5.7 Billion+
PR Newswire
DEARBORN, Mich., Jan. 29, 2013
DEARBORN, Mich., Jan. 29, 2013 /PRNewswire/ --
o Strong full year pre-tax profit was $8 billion, or $1.41 per share, a
decrease of $797 million from a year ago
o Full year net income was $5.7 billion, or $1.42 per share; excluding
impact of 2011 changes in valuation allowance against deferred tax assets,
full year 2012 net income was $307 million lower than 2011
o Positive Automotive operating-related cash flow was $3.4 billion for the
full year and $1 billion for the fourth quarter — the 11^th consecutive
quarter of positive performance. Ford ended 2012 with Automotive gross
cash of $24.3 billion, exceeding debt by $10 billion, and a strong
liquidity position of $34.5 billion, an increase of $2.1 billion over 2011
o Ford had its highest fourth quarter pre-tax profit in more than a decade —
when trucks and SUVs were a more significant portion of the U.S. product
mix — at $1.7 billion, or $0.31 per share, an increase of $577 million
from fourth quarter 2011. Ford has now posted a pre-tax operating profit
for 14 consecutive quarters
o Total company fourth quarter net income was $1.6 billion, or $0.40 per
share; excluding impact of 2011 changes in valuation allowance against
deferred tax assets, fourth quarter net income was $565 million higher
than 2011
o Total Automotive full-year pre-tax profit of $6.3 billion was driven by
Ford North America results, which set fourth quarter and full year records
for pre-tax profit and operating margin since Ford began reflecting the
region as a separate business unit in 2000. For the full year, Ford North
America's pre-tax profit was $8.3 billion with an operating margin of
10.4 percent
o Ford Credit reported continued solid performance with a full year pre-tax
profit of $1.7 billion
o For 2013 outlook, Ford expects another strong year, with Total Company
operating profit to be about equal to 2012, Automotive operating margin to
be about equal to or lower than 2012, and Automotive operating-related
cash flow to be higher than 2012
Financial Results Fourth Quarter Full Year
Summary +
2011 2012 B/(W) 2011 2011 2012 B/(W) 2011
Wholesales (000) 1,427 1,534 107 5,695 5,668 (27)
Revenue (Bils.) $ 34.6 $ 36.5 $ 1.9 $ 136.3 $ 134.3 $ (2.0)
Operating Results
Pre-tax results $ 1,104 $ 1,681 $ 577 $ 8,763 $ 7,966 $ (797)
(Mils.)++
After-tax results 797 1,241 444 6,119 5,596 (523)
(Mils.)+++
Earnings per 0.20 0.31 0.11 1.51 1.41 (0.10)
share+++
Special items $ 349 $ 160 $ (189) $ (82) $ (246) $ (164)
pre-tax (Mils.)
Net income
attributable to
Ford -- excl.
2011
changes in val.
allow. against
deferred tax
assets
After-tax results $ 1,033 $ 1,598 $ 565 $ 5,972 $ 5,665 $ (307)
(Mils.)
Net income
attributable to
Ford
After-tax results $ 13,615 $ 1,598 $ (12,017) $ 20,213 $ 5,665 $ (14,548)
(Mils.)
Earnings per 3.40 0.40 (3.00) 4.94 1.42 (3.52)
share
Automotive
Operating-related $ 0.7 $ 1.0 $ 0.3 $ 5.6 $ 3.4 $ (2.2)
cash flow (Bils.)
Gross cash $ 22.9 $ 24.3 $ 1.4 $ 22.9 $ 24.3 $ 1.4
(Bils.)
Debt (Bils.) (13.1) (14.3) (1.2) (13.1) (14.3) (1.2)
Net cash $ 9.8 $ 10.0 $ 0.2 $ 9.8 $ 10.0 $ 0.2
(Bils.)
See end notes on page 7.
Ford Motor Company [NYSE: F] today reported 2012 full year pre-tax profit of
$8 billion on the strength of record results from North America and continued
solid performance from Ford Credit.
Full year pre-tax profit of $8 billion, or $1.41 per share, and net income of
$5.7 billion, or $1.42 per share, were each lower than a year ago. Excluding
the impact of 2011 changes in the valuation allowance against deferred tax
assets, Ford fourth quarter net income was $565 million higher than 2011,
while full year was $307 million lower than a year ago.
Fourth quarter pre-tax profit was $1.7 billion, or $0.31 per share, an
increase of $577 million from 2011. Ford now has posted a pre-tax profit for
14 consecutive quarters. Fourth quarter net income was $1.6 billion, or $0.40
per share.
Ford generated positive Automotive operating-related cash flow of $1 billion
in the fourth quarter - the 11^th consecutive quarter of positive performance
- and positive Automotive operating-related cash flow of $3.4 billion for the
full year. Ford ended 2012 with Automotive gross cash of $24.3 billion,
exceeding debt by $10 billion, and a strong liquidity position of $34.5
billion, an increase of $2.1 billion over 2011.
"The Ford team delivered strong results once again, underscoring that our One
Ford plan is working," said Alan Mulally, Ford president and CEO. "We are well
positioned for another strong year in 2013, as we continue our plan to serve
customers in all markets around the world with a full family of vehicles —
small, medium and large; cars, utilities and trucks — with the very best
quality, fuel efficiency, safety, smart design and value."
As a result of Ford's 2012 financial performance, the company will make profit
sharing payments to approximately 45,800 eligible U.S. hourly employees on
March 14, 2013. As part of the UAW-Ford collective bargaining agreement, Ford
North America pre-tax profits of $8.3 billion will generate approximately
$8,300 per eligible employee on a full year basis. Individual profit sharing
payments may be higher or lower based on employee compensated hours.
As part of Ford's previously announced strategy to de-risk its pension
obligations, the company made $3.4 billion in cash contributions in 2012 to
its worldwide funded plans, $2.3 billion higher than 2011. This included $2
billion of discretionary contributions. In 2012, Ford settled $1.2 billion of
its pension obligations as part of the voluntary lump sum payout program for
salaried retirees, which began in the second half of 2012 and will continue
through 2013. For 2013, cash contributions to funded plans are expected to be
about $5 billion globally, including discretionary contributions of about $3.4
billion.
AUTOMOTIVE SECTOR
Fourth Quarter Full Year
2011 2012 B/(W) 2011 2012 B/(W) 2011
2011
Wholesales 1,427 1,534 107 5,695 5,668 (27)
(000)
Revenue $ 32.6 $ 34.5 $ 1.9 $ 128.2 $ 126.6 $ (1.6)
(Bils.)
Pre-tax
results $ 586 $ 1,262 $ 676 $ 6,332 $ 6,256 $ (76)
(Mils.)
Operating 2.2 % 3.8 % 1.6 pts. 5.4 % 5.3 % (0.1) pts.
Margin (Pct.)
The increase in total Automotive pre-tax profit and operating margin in the
fourth quarter is more than explained by the record quarter in North America.
South America and Asia Pacific Africa were also improved.
For the full year, Total Automotive pre-tax profit was about equal to a year
ago, reflecting primarily higher net pricing and the non-repeat of 2011 UAW
ratification bonuses, offset by higher costs, mainly structural, and
unfavorable volume.
Ford North America
Fourth Quarter Full Year
2011 2012 B/(W) 2011 2012 B/(W) 2011
2011
Wholesales 693 755 62 2,686 2,784 98
(000)
Revenue $ 19.6 $ 22.1 $ 2.5 $ 75.0 $ 79.9 $ 4.9
(Bils.)
Pre-tax
results $ 889 $ 1,872 $ 983 $ 6,191 $ 8,343 $ 2,152
(Mils.)
Operating 4.5 % 8.4 % 3.9 pts. 8.3 % 10.4 % 2.1 pts.
Margin (Pct.)
The increase of $1 billion in pre-tax profit for the fourth quarter compared
with a year ago and the substantial increase in operating margin primarily
reflected favorable market factors and the non-repeat of ratification
bonuses.
For the full year, North America pre-tax profit and operating margin were both
records. Volume and revenue were also higher.
For 2013, Ford expects the strong North America performance to continue with
pre-tax profits expected to be higher than 2012, with an operating margin of
about 10 percent. This reflects a growing industry, a strong Ford brand, an
outstanding product line-up driven by industry-leading refresh rates,
continued discipline in matching production with demand, and a lean cost
structure.
Ford South America
Fourth Quarter Full Year
2011 2012 B/(W) 2011 2011 2012 B/(W) 2011
Wholesales (000) 124 144 20 506 498 (8)
Revenue (Bils.) $ 2.8 $ 3.1 $ 0.3 $ 11.0 $ 10.1 $ (0.9)
Pre-tax results $ 108 $ 145 $ 37 $ 861 $ 213 $ (648)
(Mils.)
Operating Margin 3.9 % 4.8 % 0.9 pts. 7.8 % 2.1 % (5.7) pts.
(Pct.)
Pre-tax profit and operating margin in the fourth quarter were both higher
than a year ago, more than explained by favorable market factors driven by
several new products recently launched; higher costs and unfavorable exchange
in Brazil were partial offsets.
For the full year, South America pre-tax profit was $213 million,
substantially lower than a year ago.
For 2013, Ford expects its South America results to be about breakeven.
Although results will benefit from new products recently launched or to be
launched during the year, the competitive environment and currency risks
across the region, especially in Venezuela, are expected to impact company
profits adversely. In addition, government actions to incentivize local
production and balance trade are driving trade frictions between South
American countries and also with Mexico, resulting in business environment
instability and new trade barriers.
Ford Europe
Fourth Quarter Full Year
2011 2012 B/(W) 2011 2012 B/(W) 2011
2011
Wholesales 391 327 (64) 1,602 1,353 (249)
(000)
Revenue $ 8.3 $ 6.5 $ (1.8) $ 33.8 $ 26.6 $ (7.2)
(Bils.)
Pre-tax
results $ (190) $ (732) $ (542) $ (27) $ (1,753) $ (1,726)
(Mils.)
Operating (9.1)
Margin (2.3) % (11.4) % pts. (0.1) % (6.6) % (6.5) pts.
(Pct.)
The decline in Ford Europe's fourth quarter pre-tax results was more than
explained by unfavorable volume and mix. The industry for the 19 markets Ford
tracks in Europe was 13.5 million units, the lowest quarterly SAAR since
1995.
For the full year, Ford Europe continued to be negatively impacted by the
challenging economic conditions in the region.
Ford's European results are consistent with prior guidance. The company's
announced European transformation is proceeding according to plan. In the
fourth quarter, the company started recognizing accelerated depreciation for
the plants it intends to close, subject to employee consultation. Ford also
recognized the cost of salaried separations, which are included in special
items.
Ford is on track to deliver its European transformation plan, focused on
product, brand, and cost. In 2013, compared with last year, Ford will benefit
from the non-repeat to the same degree of dealer stock reductions. However,
consistent with its guidance, Ford will incur higher costs associated with its
restructuring actions, mainly investment in new products — as outlined at its
Amsterdam product event, accelerated depreciation, and costs to implement its
revised manufacturing footprint. As Ford did in North America, these are
investments the company is making now to transform its European business for
profitable growth in the future.
Since providing guidance in October, Ford's outlook for industry volume has
deteriorated. Ford now expects industry volume to be in the lower end of the
range of 13 million to 14 million units. In addition, Ford is being adversely
impacted by higher pension costs due to lower discount rates, and a stronger
euro. As a result, Ford now expects full year 2013 results for Ford Europe to
be a loss of about $2 billion, compared to prior guidance of a loss about
equal to 2012. The business environment remains uncertain, and Ford will
continue to monitor the situation in Europe and take further action as
necessary.
Ford Asia Pacific Africa
Fourth Quarter Full Year
2011 2012 B/(W) 2011 2011 2012 B/(W) 2011
Wholesales 219 308 89 901 1,033 132
(000)
Revenue (Bils.) $ 1.9 $ 2.8 $ 0.9 $ 8.4 $ 10.0 $ 1.6
Pre-tax results $ (83) $ 39 $ 122 $ (92) $ (77) $ 15
(Mils.)
Operating (4.4) % 1.4 % 5.8 pts. (1.1) % (0.8) % 0.3 pts.
Margin (Pct.)
The improvement in both fourth quarter pre-tax profits and operating margin
was more than explained by favorable market factors, offset partially by
higher costs associated with new products and investments to support higher
volumes and future growth. Ford China recorded a 41 percent increase in sales
in the fourth quarter and increased its market share from 2.8 percent to 3.4
percent, both quarterly records for the company in the region.
While Ford Asia Pacific Africa posted a full year loss, it sold more than 1
million vehicles for the first time, and recorded $10 billion in revenue, also
a record.
For 2013, Ford expects Asia Pacific Africa to be about breakeven. The company
also expects its volume and revenue growth in the region to accelerate,
supported by the launch of the all-new Kuga, Mondeo, EcoSport, and refreshed
Fiesta across the region, as well as the launch of Mondeo and Explorer in
China. This will be offset in large part by continued strong investment across
the region to support Ford's longer-range growth plans.
Other Automotive
The fourth quarter loss of $62 million in Other Automotive mainly reflected
net interest expense of $147 million, offset partially by a favorable fair
market value adjustment on the company's investment in Mazda.
For the full year, the loss in Other Automotive of $470 million was more than
explained by $489 million of net interest expense.
For 2013, Ford expects net interest expense to be higher than the fourth
quarter 2012 run rate, reflecting the increase in Automotive debt associated
with the company's recent issuance and lower interest income.
FINANCIAL SERVICES SECTOR
Fourth Quarter Full Year
2011 2012 B/(W) 2011 2011 2012 B/(W) 2011
Revenue (Bils.) $ 2.0 $ 2.0 $ — $ 8.1 $ 7.7 $ (0.4)
Ford Credit
pre-tax results $ 506 $ 414 $ (92) $ 2,404 $ 1,697 $ (707)
(Mils.)
Other Financial
Services pre-tax 12 5 (7) 27 13 (14)
results (Mils.)
Financial
Services pre-tax $ 518 $ 419 $ (99) $ 2,431 $ 1,710 $ (721)
results (Mils.)
Ford Motor Credit Company
In line with expectations, lower fourth quarter pre-tax results compared with
a year ago reflected mainly lower credit loss reserve reductions and lower
financing margin as higher-yielding assets originated in prior years run off.
The decline in full year pre-tax profit is more than explained by fewer lease
terminations, resulting in fewer vehicles sold at a gain, and lower financing
margin.
For 2013, Ford Credit projects full year pre-tax profit about equal to 2012;
managed receivables at year end in the range of $95 billion to $105 billion;
managed leverage to continue in the range of 8:1 to 9:1; and planned
distributions of about $200 million.
PRODUCTION VOLUMES*
2012 Actual 2013
Fourth Quarter Full Year First Quarter
Forecast
Units O/(U) 2011 Units O/(U) 2011 Units O/(U) 2012
(000) (000) (000) (000) (000) (000)
North America 735 60 2,822 124 770 93
South America 116 16 417 (44) 115 18
Europe 340 (62) 1,446 (188) 405 (13)
Asia Pacific 302 111 1,023 162 275 62
Africa
Total 1,493 125 5,708 54 1,565 160
*Includes production of Ford brand and JMC brand vehicles to be sold by
unconsolidated affiliates.
Fourth Quarter, Full Year 2012 and First Quarter 2013 Production Volumes
In the fourth quarter, total company production was about 1.5 million units,
125,000 units higher than a year ago. This is 13,000 units higher than Ford's
most recent guidance.
For the full year, Ford produced 5.7 million units, up 54,000 from a year ago.
The company expects first quarter production to be about 1.6 million units, up
160,000 units from a year ago, reflecting higher volume in all regions except
Europe. Compared with the fourth quarter, first quarter production is up
72,000 units.
OUTLOOK
Ford's planning assumptions and key metrics include the following:
2011 Full 2012 Full Year 2012 Full
Year Year
Results Plan Results
Planning Assumptions
Industry Volume* -- U.S. 13.0 13.5 - 14.5 14.8
(Mils.)
Industry Volume* -- 15.3 14.0 - 15.0 14.0
Europe (Mils.)**
Operational Metrics
Compared with Prior Year:
- U.S. Market Share 16.5% About Equal 15.2%
- Europe Market Share** 8.3% About Equal 7.9%
- Quality Mixed Improve Mixed
Financial Metrics
Compared with Prior Year:
- Automotive Pre-Tax
Operating Profit $6.3 Higher $6.3
(Bils.)***
- Ford Motor Credit
Pre-Tax Operating Profit $2.4 Lower $1.7
(Bils.)
- Total Company Pre-Tax
Operating Profit $8.8 About Equal $8.0
(Bils.)***
- Automotive Structural
Costs Increase $1.4 Less than $2.0 $1.5
(Bils.)****
- Automotive Operating 5.4% Improve 5.3%
Margin***
Absolute Amount:
- Capital Spending $4.3 $5.5 - $6.0 $5.5
(Bils.)
* Includes medium and heavy
trucks
** The 19 markets we track
Excludes special items; Automotive operating margin is defined as
*** Automotive pre-tax results, excluding special items and Other Automotive,
divided by Automotive revenue
**** Structural cost changes are measured primarily at present-year exchange,
and exclude special items and discontinued operations
2012 2013 Full Year
Results Plan
Planning Assumptions
Industry Volume* -- U.S. (Mils.) 14.8 15.0 - 16.0
-- Europe 14.0 13.0 - 14.0
(Mils.)**
-- China 19.0 19.5 - 21.5
(Mils.)
Operational Metrics
Compared with Prior Year:
Market Share -- U.S. 15.2% Higher
-- Europe** 7.9 About Equal
-- China*** 3.2 Higher
Quality Mixed Improve
Financial Metrics
Compared with Prior Year:
- Total Company Pre-Tax Profit $8.0 About Equal
(Bils.)****
- Automotive Operating Margin**** 5.3% About Equal /
Lower
- Automotive Operating-Related Cash $3.4 Higher
Flow (Bils.)
* Includes medium and heavy trucks
** The 19 markets we track
*** Includes Ford and JMC brand vehicles sold 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
Ford remains focused on delivering the key aspects of the One Ford plan, which
are unchanged:
o Aggressively restructuring to operate profitably at the current demand and
changing model mix
o Accelerating the development of new products that customers want and value
o Financing the plan and improving the balance sheet
o Working together effectively as one team, leveraging Ford's global assets
"Our focus this year will be to continue our strong performance in North
America and at Ford Credit, while at the same time, addressing challenges and
opportunities in other parts of our business," said Bob Shanks, Ford chief
financial officer. "In Europe this means executing our transformation plan,
while in South America we will continue to refresh our entire product line-up,
and in Asia Pacific we will continue to invest for even stronger, profitable
growth in the future."
Overall, the company expects 2013 to be another strong year, as it continues
to work toward its mid-decade outlook.
The financial results discussed herein are presented on a preliminary
+ basis; final data will be included in Ford's Annual Report on Form 10-K
for the year ended Dec. 31, 2012. The following information applies to
the information throughout this release:
o Pre-tax operating results exclude special items unless otherwise
noted.
o 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.
o 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.
o 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 Jan. 29, 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.
Safe Harbor/Risk Factors
Statements included herein may constitute "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on expectations, forecasts, and
assumptions by our management and involve a number of risks, uncertainties,
and other factors that could cause actual results to differ materially from
those stated, including, without limitation:
o Decline in industry sales volume, particularly in the United States or
Europe, due to financial crisis, recession, geo-political events, or other
factors;
o Decline in market share or failure to achieve growth;
o Lower-than-anticipated market acceptance of new or existing products;
o An increase in or acceleration of market shift beyond our current planning
assumptions from sales of trucks, medium- and large-sized utilities, or
other more profitable vehicles, particularly in the United States;
o An increase in fuel prices, continued volatility of fuel prices, or
reduced availability of fuel;
o Continued or increased price competition resulting from industry
overcapacity, currency fluctuations, or other factors;
o Adverse effects from the bankruptcy, insolvency, or government-funded
restructuring of, change in ownership or control of, or alliances entered
into by a major competitor;
o Fluctuations in foreign currency exchange rates, commodity prices, and
interest rates;
o Economic distress of suppliers that may require us to provide substantial
financial support or take other measures to ensure supplies of components
and could increase our costs, affect our liquidity, or cause production
constraints or disruptions;
o Single-source supply of components or materials;
o Labor or other constraints on our ability to maintain competitive cost
structure;
o Work stoppages at Ford or supplier facilities or other interruptions of
production;
o Substantial pension and postretirement health care and life insurance
liabilities impairing our liquidity or financial condition;
o Worse-than-assumed economic and demographic experience for our
postretirement benefit plans (e.g., discount rates or investment returns);
o Restriction on use of tax attributes from tax law "ownership change;"
o The discovery of defects in vehicles resulting in delays in new model
launches, recall campaigns, reputational damage, or increased warranty
costs;
o Increased safety, emissions, fuel economy, or other regulation resulting
in higher costs, cash expenditures, and/or sales restrictions;
o Unusual or significant litigation, governmental investigations or adverse
publicity arising out of alleged defects in our products, perceived
environmental impacts, or otherwise;
o A change in our requirements for parts where we have long-term supply
arrangements committing us to purchase minimum or fixed quantities of
certain parts, or to pay a minimum amount to the seller ("take-or-pay"
contracts);
o Adverse effects on our results from a decrease in or cessation or clawback
of government incentives related to investments;
o Adverse effects on our operations resulting from certain geo-political or
other events;
o Inherent limitations of internal controls impacting financial statements
and safeguarding of assets;
o Substantial levels of Automotive indebtedness adversely affecting our
financial condition or preventing us from fulfilling our debt obligations;
o Failure of financial institutions to fulfill commitments under committed
credit facilities;
o 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;
o Higher-than-expected credit losses;
o Increased competition from banks or other financial institutions seeking
to increase their share of financing Ford vehicles;
o Collection and servicing problems related to finance receivables and net
investment in operating leases;
o Lower-than-anticipated residual values or higher-than-expected return
volumes for leased vehicles;
o Imposition of additional costs or restrictions due to the Dodd-Frank Wall
Street Reform and Consumer Protection Act ("Act") and its implementing
rules and regulations;
o New or increased credit, consumer, or data protection or other regulations
resulting in higher costs and/or additional financing restrictions; and
o Inability of Ford Credit to obtain competitive funding.
Ford cannot be certain that any expectation, forecast, or assumption made in
preparing forward-looking statements will prove accurate, or that any
projection will be realized. It is to be expected that there may be
differences between projected and actual results. Ford's forward-looking
statements speak only as of the date of initial issuance, and Ford does not
undertake any obligation to update or revise publicly any forward-looking
statement, whether as a result of new information, future events or
otherwise. For additional discussion of these risks, see "Item 1A . Risk
Factors" of Ford's Annual Report on Form 10-K for the year ended
December 31, 2011.
CONFERENCE CALL DETAILS
Ford Motor Company [NYSE:F] releases its preliminary fourth quarter 2012
financial results at 7 a.m. EST today. The following briefings will be held
after the announcement:
o At 9 a.m. EST, 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
2012 fourth quarter and full-year results.
o At 11 a.m. EST, 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.
Listen-only presentations and supporting materials will be available on the
Internet at www.shareholder.ford.com. Representatives of the news media and
the investment community participating by teleconference will have the
opportunity to ask questions following the presentations.
Access Information — Tuesday, Jan. 29, 2013
Earnings Call: 9 a.m. (EST)
Toll Free: 1.866.318.8613
International: 1.617.399.5132
Earnings Passcode: Ford Earnings
Fixed Income: 11 a.m. (EST)
Toll Free: 1.866.515.2907
International: 1.617.399.5121
Fixed Income Passcode: Ford Fixed Income
Replays — Available after 2 p.m. the day of the event through Tuesday,
February 5, 2013.
www.shareholder.ford.com
Toll Free: 1.888.286.8010
International: 1.617.801.6888
Replay Passcodes:
Earnings: 37382865
Fixed Income: 87513123
About Ford Motor Company
Ford Motor Company, a global automotive industry leader based in Dearborn,
Mich., manufactures or distributes automobiles across six continents. With
about 171,000 employees and 65 plants worldwide, the company's automotive
brands include Ford and Lincoln. The company provides financial services
through Ford Motor Credit Company. For more information regarding Ford's
products, please visit www.ford.com.
CALCULATION OF EARNINGS PER SHARE
Fourth Quarter 2012 Full Year 2012
After-Tax After-Tax
Net Income Operating Net Income Operating
Attributable to Results Attributable to Results
Excl. Excl.
Ford Ford
Special Special
Items* Items*
After-Tax
Results
(Mils.)
After-tax $ 1,598 $ 1,241 $ 5,665 $ 5,596
results*
Effect of
dilutive 2016 13 11 46 44
Convertible
Notes**
Effect of
dilutive 2036 1 — 2 1
Convertible
Notes**
Diluted
after-tax $ 1,612 $ 1,252 $ 5,713 $ 5,641
results
Basic and
Diluted Shares
(Mils.)***
Basic shares
(Average 3,830 3,830 3,815 3,815
shares
outstanding)
Net dilutive
options and 78 76 101 100
warrants
Dilutive 2016
Convertible 97 97 96 96
Notes
Dilutive 2036
Convertible 3 3 3 3
Notes
Diluted shares 4,008 4,006 4,015 4,014
EPS (Diluted) $ 0.40 $ 0.31 $ 1.42 $ 1.41
* Excludes Income / (Loss) attributable to non-controlling interests and the
effect of discontinued operations; special items detailed on page 11.
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.
Includes (i) 36 million and 53 million in average net dilutive shares for
the Fourth Quarter and Full Year 2012, respectively, for warrants
outstanding prior to exercise and (ii) 35 million and 9 million in average
*** basic shares outstanding for the Fourth Quarter and Full Year 2012,
respectively, for shares issued for warrants exercised. In total, by the
deadline for exercise of December 31, 2012, 362 million warrants were
exercised on a net share settlement basis, resulting in the issuance of
106 million shares.
TOTAL COMPANY
INCOME FROM CONTINUING OPERATIONS
Fourth Quarter Full Year
2011 2012 2011 2012
(Mils.) (Mils.) (Mils.) (Mils.)
North America $ 889 $ 1,872 $ 6,191 $ 8,343
South America 108 145 861 213
Europe (190) (732) (27) (1,753)
Asia Pacific Africa (83) 39 (92) (77)
Other Automotive (138) (62) (601) (470)
Total Automotive (excl. special $ 586 $ 1,262 $ 6,332 $ 6,256
items)
Special items -- Automotive 349 160 (82) (246)
Total Automotive $ 935 $ 1,422 $ 6,250 $ 6,010
Financial Services 518 419 2,431 1,710
Pre-tax results $ 1,453 $ 1,841 $ 8,681 $ 7,720
(Provision for)/Benefit from income 12,161 (246) 11,541 (2,056)
taxes
Net income $ 13,614 $ 1,595 $ 20,222 $ 5,664
Less: Income/(Loss) attributable to (1) (3) 9 (1)
non-controlling interests
Net income attributable to $ 13,615 $ 1,598 $ 20,213 $ 5,665
Ford
Memo: Excluding special items
Pre-tax results $ 1,104 $ 1,681 $ 8,763 $ 7,966
(Provision for)/Benefit from income (308) (443) (2,635) (2,371)
taxes
Less: Income/(Loss) attributable to (1) (3) 9 (1)
non-controlling interests
After tax results $ 797 $ 1,241 $ 6,119 $ 5,596
TOTAL COMPANY
SPECIAL ITEMS
Fourth Quarter Full Year
2011 2012 2011 2012
(Mils.) (Mils.) (Mils.) (Mils.)
Personnel and
Dealer-Related Items
Personnel-reduction $ (56) $ (185) $ (269) $ (498)
actions*
Mercury discontinuation / (47) (24) (151) (71)
Other dealer actions
Job Security Benefits 60 (6) 93 17
(JSB) / Other
Total Personnel and $ (43) $ (215) $ (327) $ (552)
Dealer-Related Items
Other Items
CFMA restructuring $ — $ 625 $ — $ 625
AAI consolidation — — — 136
FordSollers gain 401 — 401 1
U.S. pension buyouts — (250) — (250)
Loss on sale of two — — — (174)
component businesses
Belgium pension (5) — (109) —
settlement
Other (4) — (47) (32)
Total Other Items $ 392 $ 375 $ 245 $ 306
Total Special Items $ 349 $ 160 $ (82) $ (246)
Tax Special Items** $ 12,469 $ 197 $ 14,176 $ 315
Memo:
Special Items impact on $ 3.20 $ 0.09 $ 3.43 $ 0.01
earnings per share***
* Includes
pension-related special
items
** For 2011, primarily represents valuation allowance reversal at year end
and valuation allowance consumed during the year
*** Includes related tax effect on special items and tax special items
NET INTEREST RECONCILIATION TO GAAP
Fourth Quarter Full Year
2011 2012 2011 2012
(Mils.) (Mils.) (Mils.) (Mils.)
Interest expense $ (183) $ (142) $ (817) $ (713)
Interest income 96 52 387 272
Subtotal $ (87) $ (90) $ (430) $ (441)
Adjusted for items included / excluded
from net interest:
Include: Gains/(Losses) on cash (24) 5 (8) 69
equiv. & mark. securities*
Exclude: Change in amortized value — (45) — (45)
of debt included in interest expense
Exclude: Special items — — (2) —
Other (15) (17) (60) (72)
Net Interest $ (126) $ (147) $ (500) $ (489)
* Excludes mark-to-market adjustments of our investment in Mazda
AUTOMOTIVE SECTOR
GROSS CASH RECONCILIATION TO GAAP
Dec. 31, Sep. 30, Dec. 31,
2011 2012 2012
(Bils.) (Bils.) (Bils.)
Cash and cash $ 7.9 $ 6.2 $ 6.2
equivalents
Marketable 15.0 17.9 18.2
securities
Total cash and
marketable $ 22.9 $ 24.1 $ 24.4
securities
Securities in — — (0.1)
transit*
Gross cash $ 22.9 $ 24.1 $ 24.3
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
Fourth Quarter Full Year
2011 2012 2011 2012
(Bils.) (Bils.) (Bils.) (Bils.)
Cash flows from operating activities of $ 2.6 $ 2.2 $ 9.4 $ 6.3
continuing operations
Items included in operating-related cash
flows
Capital expenditures (1.2) (1.9) (4.3) (5.5)
Proceeds from the exercise of stock — — 0.1 —
options
Net cash flows from non-designated — (0.2) 0.1 (0.8)
derivatives
Items not included in operating-related
cash flows
Cash impact of JSB and 0.1 0.1 0.3 0.4
personnel-reduction actions
Pension contributions 0.1 0.9 1.1 3.4
Tax refunds and tax payments from (1.0) — (1.4) (0.1)
affiliates
Settlement of outstanding obligation — — — (0.3)
with affiliates
Other 0.1 (0.1) 0.3 —
Operating-related cash flows $ 0.7 $ 1.0 $ 5.6 $ 3.4
SOURCE Ford Motor Company
Website: http://www.ford.com
Contact: Media: Jay Cooney, +1-313-319-5477, jcoone17@ford.com; Equity
Investment Community: Larry Heck, +1-313-594-0613, fordir@ford.com; Fixed
Income Investment Community: Molly Tripp, +1-313-621-0881, fixedinc@ford.com;
Shareholder Inquiries: 1-800-555-5259 or +1-313-845-8540, stockinf@ford.com
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