Detroit Style
07-24-2009, 05:26 PM
DEARBORN, Mich., July 23 /PRNewswire-FirstCall/ --
* Reported a pre-tax operating loss of $424 million, excluding special items, for the second quarter of 2009(+) and net income of $2.3 billion, or $0.69 per share. Special items totaled a net gain of $2.8 billion, including a $3.4 billion gain related to debt-reduction actions
* Reduced Automotive structural costs by $1.8 billion, including $1.2 billion in North America(+)
* Strong new products drove market share gains in all regions - North America, South America, Europe and Asia Pacific Africa - while achieving further improvements in transaction prices and margins
* Ford's customer satisfaction with vehicle quality reached its highest level in North America and now equals Toyota; Ford, Lincoln and Mercury brand vehicles had the fewest "things gone wrong" among all automakers; Ford leads the U.S. industry in Insurance Institute for Highway Safety "Top Safety Pick" awards
* Ended the second quarter with Automotive gross cash of $21 billion; operating-related cash outflow was $1 billion, an improvement of $2.7 billion from the first quarter of 2009(+++)
* Raised $1.6 billion by issuing 345 million new shares of common stock; completed actions to reduce Automotive debt by $10.1 billion
* Ford Credit reported a pre-tax profit of $646 million, compared with a pre-tax loss of $294 million a year ago(+)
* Ford remains on track, based on current planning assumptions, to achieve its key 2011 financial targets
Ford Motor Company (NYSE: F) today reported a pre-tax operating loss of $424 million in the second quarter of 2009, excluding special items - a $609 million improvement compared with the second quarter of last year - as cost reductions, net pricing, Ford Credit results and market share helped offset the continued impact of the severe global economic downturn. (+)(+++++)
On an after-tax basis, excluding special items, Ford posted an operating loss of $638 million in the second quarter, or $0.21 per share, compared with a loss of $1.4 billion, or $0.63 per share, a year ago. (+)(+++++)
Ford posted net income of $2.3 billion, or $0.69 per share. These results compare with a net loss of $8.7 billion, or $3.89 per share, in the second quarter of 2008. (+++++) The results for the second quarter 2009 include a special items net gain totaling $2.8 billion, or $0.90 per share, which includes a $3.4 billion gain related to Ford and Ford Credit's recent debt-reduction actions.
Ford's second quarter revenue was $27.2 billion, down $11 billion from the same period a year ago.(+)
"While the business environment remained extremely challenging around the world, we made significant progress on our transformation plan," said Ford President and CEO Alan Mulally. "Our underlying business is growing progressively stronger as we introduce great new products that customers want and value, while continuing to aggressively restructure our business and strengthen our balance sheet."
In the second quarter, Ford completed several actions to strengthen its overall business, including:
* Completing a series of transactions that reduced Automotive debt obligations by $10.1 billion, which will save the company more than $500 million a year in interest expense
* Raising $1.6 billion through the issuance of 345 million shares of Ford common stock
* Reducing Automotive structural costs by $1.8 billion, including $1.2 billion in North America
* Reducing the U.S. hourly work force by approximately 1,000 through a buyout program
Ford reached agreement with the UAW, subject to court and other approvals, to allow Ford the option to fund up to half of its VEBA obligations with Ford common stock at market prices instead of fixed prices in 2009, 2010 and 2011. Ford finished the second quarter with $21 billion in Automotive gross cash, compared with $21.3 billion at the end of the first quarter of 2009. Automotive operating-related cash flow was $1 billion negative during the second quarter of 2009, an improvement of $2.7 billion from the first quarter of 2009. Automotive operating-related cash flow was $4.7 billion negative during the first half; on track with Ford's plan. (+++)
"Ford delivered a very solid quarter, and our transformation plan remains well on track," said Lewis Booth, Ford executive vice president and chief financial officer. "We strengthened our balance sheet, reduced cash outflows and improved our year-over-year financial results despite sharply lower industry volumes."
The following discussion of second quarter highlights and results are on a pre-tax basis and exclude special items. See tables following "Safe Harbor/Risk Factors" for the nature and amount of these special items and any necessary reconciliation to U.S. GAAP. Discussion of Automotive operating cost changes is at constant volume, mix, and exchange, and excludes special items.
SECOND QUARTER HIGHLIGHTS
* Ford gained market share in all regions compared with the second quarter 2008:
o U.S. market share rose for Ford, Lincoln and Mercury by two points to 16.4 percent. Canada and Mexico were both up, with increases of 2.8 and 1.1 points, respectively, helping Ford become Canada's top-selling brand in June for the first time in 50 years
o Ford's share of the South American market improved one point to 10.4 percent
o In Europe, Ford market share rose a half point to 9.0 percent, its highest second quarter level in the past 10 years
o In the Asia Pacific Africa region, Ford market share was up one-tenth of a point
* For the first time in the 28-year history of the Global Quality Research System (GQRS) study, U.S. Ford, Lincoln and Mercury brand vehicles had the fewest number of "things gone wrong" among all automakers. Customer satisfaction with vehicle quality also continued to improve, reaching its highest level in North America and equaling Toyota
* The company posted an eighth straight year of improvement in the J.D. Power Initial Quality Study. Ford and Mercury brands placed among the Top 10 in initial quality
* All Ford brands improved significantly in the J.D. Power APEAL study of customer satisfaction. The Ford F-150 and Ford Flex led their respective segments and were noted for their fuel efficiency and styling
* Ford average vehicle transaction prices in the U.S. increased at a rate above the industry average, reflecting that customers are equipping these new products with high levels of content and features
* Ford announced a $550 million investment to transform its Michigan Assembly Plant to build Ford's next-generation Focus global small car and new battery-electric Focus
* A new passenger car plant was launched in Thailand in partnership with Mazda to build Mazda2 and Ford Fiesta models, which will be exported throughout the Southeast Asian market beginning this fall
* Ford qualified for $5.9 billion in loans from the U.S. Department of Energy for advanced fuel efficient vehicles. Ford plans to invest nearly $14 billion in the U.S. over the next seven years on advanced technology vehicles
* Ford's total sales in China were up 39 percent in the second quarter of 2009 aided by the strong launch of the new Ford Fiesta and continued strong sales of the Ford Focus
* The new Ford Fiesta is now Europe's No. 2-selling car, with more than 300,000 units sold since its introduction there last fall
* The company successfully completed the European launches of the new Ford Transit Connect, Ford Ranger and Ford Transit ECOnetic
* Began production of the 2010 Ford Taurus and the high-performance 2010 Ford Taurus SHO in North America. Ford's flagship sedan arrives soon in dealer showrooms
* Production has begun for the 2010 Ford Transit Connect for North America, a purpose-built van for small businesses, which will debut this summer
* Production is under way for the 3.5-liter V6 EcoBoost engine, which will be available this year on the Lincoln MKS, Ford Flex, Ford Taurus SHO and Lincoln MKT. EcoBoost delivers the horsepower of a V8 with the fuel efficiency of a V6
* The Lincoln MKZ, Ford Focus and Volvo C30 earned the "Top Safety Pick" award from the Insurance Institute for Highway Safety. Ford has more IIHS "Top Safety Pick" awards than any other automaker:D
* Reported a pre-tax operating loss of $424 million, excluding special items, for the second quarter of 2009(+) and net income of $2.3 billion, or $0.69 per share. Special items totaled a net gain of $2.8 billion, including a $3.4 billion gain related to debt-reduction actions
* Reduced Automotive structural costs by $1.8 billion, including $1.2 billion in North America(+)
* Strong new products drove market share gains in all regions - North America, South America, Europe and Asia Pacific Africa - while achieving further improvements in transaction prices and margins
* Ford's customer satisfaction with vehicle quality reached its highest level in North America and now equals Toyota; Ford, Lincoln and Mercury brand vehicles had the fewest "things gone wrong" among all automakers; Ford leads the U.S. industry in Insurance Institute for Highway Safety "Top Safety Pick" awards
* Ended the second quarter with Automotive gross cash of $21 billion; operating-related cash outflow was $1 billion, an improvement of $2.7 billion from the first quarter of 2009(+++)
* Raised $1.6 billion by issuing 345 million new shares of common stock; completed actions to reduce Automotive debt by $10.1 billion
* Ford Credit reported a pre-tax profit of $646 million, compared with a pre-tax loss of $294 million a year ago(+)
* Ford remains on track, based on current planning assumptions, to achieve its key 2011 financial targets
Ford Motor Company (NYSE: F) today reported a pre-tax operating loss of $424 million in the second quarter of 2009, excluding special items - a $609 million improvement compared with the second quarter of last year - as cost reductions, net pricing, Ford Credit results and market share helped offset the continued impact of the severe global economic downturn. (+)(+++++)
On an after-tax basis, excluding special items, Ford posted an operating loss of $638 million in the second quarter, or $0.21 per share, compared with a loss of $1.4 billion, or $0.63 per share, a year ago. (+)(+++++)
Ford posted net income of $2.3 billion, or $0.69 per share. These results compare with a net loss of $8.7 billion, or $3.89 per share, in the second quarter of 2008. (+++++) The results for the second quarter 2009 include a special items net gain totaling $2.8 billion, or $0.90 per share, which includes a $3.4 billion gain related to Ford and Ford Credit's recent debt-reduction actions.
Ford's second quarter revenue was $27.2 billion, down $11 billion from the same period a year ago.(+)
"While the business environment remained extremely challenging around the world, we made significant progress on our transformation plan," said Ford President and CEO Alan Mulally. "Our underlying business is growing progressively stronger as we introduce great new products that customers want and value, while continuing to aggressively restructure our business and strengthen our balance sheet."
In the second quarter, Ford completed several actions to strengthen its overall business, including:
* Completing a series of transactions that reduced Automotive debt obligations by $10.1 billion, which will save the company more than $500 million a year in interest expense
* Raising $1.6 billion through the issuance of 345 million shares of Ford common stock
* Reducing Automotive structural costs by $1.8 billion, including $1.2 billion in North America
* Reducing the U.S. hourly work force by approximately 1,000 through a buyout program
Ford reached agreement with the UAW, subject to court and other approvals, to allow Ford the option to fund up to half of its VEBA obligations with Ford common stock at market prices instead of fixed prices in 2009, 2010 and 2011. Ford finished the second quarter with $21 billion in Automotive gross cash, compared with $21.3 billion at the end of the first quarter of 2009. Automotive operating-related cash flow was $1 billion negative during the second quarter of 2009, an improvement of $2.7 billion from the first quarter of 2009. Automotive operating-related cash flow was $4.7 billion negative during the first half; on track with Ford's plan. (+++)
"Ford delivered a very solid quarter, and our transformation plan remains well on track," said Lewis Booth, Ford executive vice president and chief financial officer. "We strengthened our balance sheet, reduced cash outflows and improved our year-over-year financial results despite sharply lower industry volumes."
The following discussion of second quarter highlights and results are on a pre-tax basis and exclude special items. See tables following "Safe Harbor/Risk Factors" for the nature and amount of these special items and any necessary reconciliation to U.S. GAAP. Discussion of Automotive operating cost changes is at constant volume, mix, and exchange, and excludes special items.
SECOND QUARTER HIGHLIGHTS
* Ford gained market share in all regions compared with the second quarter 2008:
o U.S. market share rose for Ford, Lincoln and Mercury by two points to 16.4 percent. Canada and Mexico were both up, with increases of 2.8 and 1.1 points, respectively, helping Ford become Canada's top-selling brand in June for the first time in 50 years
o Ford's share of the South American market improved one point to 10.4 percent
o In Europe, Ford market share rose a half point to 9.0 percent, its highest second quarter level in the past 10 years
o In the Asia Pacific Africa region, Ford market share was up one-tenth of a point
* For the first time in the 28-year history of the Global Quality Research System (GQRS) study, U.S. Ford, Lincoln and Mercury brand vehicles had the fewest number of "things gone wrong" among all automakers. Customer satisfaction with vehicle quality also continued to improve, reaching its highest level in North America and equaling Toyota
* The company posted an eighth straight year of improvement in the J.D. Power Initial Quality Study. Ford and Mercury brands placed among the Top 10 in initial quality
* All Ford brands improved significantly in the J.D. Power APEAL study of customer satisfaction. The Ford F-150 and Ford Flex led their respective segments and were noted for their fuel efficiency and styling
* Ford average vehicle transaction prices in the U.S. increased at a rate above the industry average, reflecting that customers are equipping these new products with high levels of content and features
* Ford announced a $550 million investment to transform its Michigan Assembly Plant to build Ford's next-generation Focus global small car and new battery-electric Focus
* A new passenger car plant was launched in Thailand in partnership with Mazda to build Mazda2 and Ford Fiesta models, which will be exported throughout the Southeast Asian market beginning this fall
* Ford qualified for $5.9 billion in loans from the U.S. Department of Energy for advanced fuel efficient vehicles. Ford plans to invest nearly $14 billion in the U.S. over the next seven years on advanced technology vehicles
* Ford's total sales in China were up 39 percent in the second quarter of 2009 aided by the strong launch of the new Ford Fiesta and continued strong sales of the Ford Focus
* The new Ford Fiesta is now Europe's No. 2-selling car, with more than 300,000 units sold since its introduction there last fall
* The company successfully completed the European launches of the new Ford Transit Connect, Ford Ranger and Ford Transit ECOnetic
* Began production of the 2010 Ford Taurus and the high-performance 2010 Ford Taurus SHO in North America. Ford's flagship sedan arrives soon in dealer showrooms
* Production has begun for the 2010 Ford Transit Connect for North America, a purpose-built van for small businesses, which will debut this summer
* Production is under way for the 3.5-liter V6 EcoBoost engine, which will be available this year on the Lincoln MKS, Ford Flex, Ford Taurus SHO and Lincoln MKT. EcoBoost delivers the horsepower of a V8 with the fuel efficiency of a V6
* The Lincoln MKZ, Ford Focus and Volvo C30 earned the "Top Safety Pick" award from the Insurance Institute for Highway Safety. Ford has more IIHS "Top Safety Pick" awards than any other automaker:D