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Ford Delivers Best Quarter Ever with 2016 First Quarter Pre-Tax Profit of $3.8B; Net Income of $2.5B


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Ford Delivers Best Quarter Ever with First Quarter Pre-Tax Profit of $3.8B;
Net Income of $2.5B


Apr 28, 2016 | DEARBORN, Mich.



DEARBORN, Mich., April 28, 2016 – Ford Motor Company [NYSE: F] today reported its 2016 first quarter financial results. Visit media.ford.com to view the news release and visit http://www.shareholder.ford.com to view the slide presentation and access the webcast to Ford’s earnings call, which begins at 9 a.m. EDT with Mark Fields, president and chief executive officer, and Bob Shanks, executive vice president and chief financial officer.

Highlights include:

  • Record quarterly pre-tax profit of $3.8B, up $2.1B; net income of $2.5B, up $1.3B; after-tax earnings per share of $0.68, excluding special items, up $0.39 from a year ago
  • Strong Automotive operating-related cash flow of $2.7B, a first quarter record
  • Record Automotive pre-tax profit of $3.3B, up $2.0B; Automotive operations outside North America profitable in total
  • Record Automotive operating margin of 9.8 percent

 

 

 

 

NORTH AMERICA

  • North America had best quarter ever pre-tax profit of $ 3.1B, up $1.5B, with
    a record operating margin of 12.9%
  • Market share improved in North America and the U.S. driven by strong fleet
    sales of the SUV line-up, Transit and F-150
  • Pre-tax profit improvement was driven by favorable volume and mix,
    reflecting the full availability of the product portfolio after the successful
    launch of F-150 in 2015 and the strength of our SUV product line up
  • For 2016, expect pre-tax results to be about equal to 2015 with an
    operating margin of 9.5 percent or higher

Looks like those extra fleet sales added to the great result...

Edited by jpd80
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Ford Delivers Best Quarter Ever with First Quarter Pre-Tax Profit of $3.8B;

Net Income of $2.5B

 

Apr 28, 2016 | DEARBORN, Mich.

 

DEARBORN, Mich., April 28, 2016 – Ford Motor Company [NYSE: F] today reported its 2016 first quarter financial results. Visit media.ford.com to view the news release and visit http://www.shareholder.ford.com to view the slide presentation and access the webcast to Ford’s earnings call, which begins at 9 a.m. EDT with Mark Fields, president and chief executive officer, and Bob Shanks, executive vice president and chief financial officer.

 

Highlights include:

  • Record quarterly pre-tax profit of $3.8B, up $2.1B; net income of $2.5B, up $1.3B; after-tax earnings per share of $0.68, excluding special items, up $0.39 from a year ago
  • Strong Automotive operating-related cash flow of $2.7B, a first quarter record
  • Record Automotive pre-tax profit of $3.3B, up $2.0B; Automotive operations outside North America profitable in total
  • Record Automotive operating margin of 9.8 percent

 

 

 

 

NORTH AMERICA

  • North America had best quarter ever pre-tax profit of $ 3.1B, up $1.5B, with

    a record operating margin of 12.9%

  • Market share improved in North America and the U.S. driven by strong fleet

    sales of the SUV line-up, Transit and F-150

  • Pre-tax profit improvement was driven by favorable volume and mix,

    reflecting the full availability of the product portfolio after the successful

    launch of F-150 in 2015 and the strength of our SUV product line up

  • For 2016, expect pre-tax results to be about equal to 2015 with an

    operating margin of 9.5 percent or higher

Looks like those extra fleet sales added to the great result...

 

Great Quarter!

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Unless they do a massive stock buy back (Which they should) the stock won't move much. The Ford family would rather see the dividend go up 5 cents then make the stock worth more money. The issue becomes when there is another downturn and you need to issue more stock you already have. There are 3.97 BILLION outstanding shares of Ford stock. That is almost 100% more shares than was on the market 10 years ago. (about 2 billion at that time)

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Ford Europe Pre-tax result was $434 Million for the quarter, not bad at all.

Ford Asia Pacific's $220 million almost covered South America's losses but not quite..

 

North America had an absolute cracker of a quarter, that sets up the pace into Q2 which should be even bigger with more buyers about.

 

Is that 12.9% due to a freakish set of events or can Ford continue at that level?

Edited by jpd80
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These are the best of times, Ford and GM should be earning lots of profit in the USA,

 

I take my hat off to Ford for finding a cunning way around production limits by building inventory through winter

and going after fleet sales in Q1 and then using larger inventory levels to press hard in Q2, that's the difference this year.

and it looks to be paying off big time.

 

Europe's $434 million pre-tax result is also worth mention as it shows hard work in Europe is paying off.

Edited by jpd80
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Unless they do a massive stock buy back (Which they should) the stock won't move much. The Ford family would rather see the dividend go up 5 cents then make the stock worth more money. The issue becomes when there is another downturn and you need to issue more stock you already have. There are 3.97 BILLION outstanding shares of Ford stock. That is almost 100% more shares than was on the market 10 years ago. (about 2 billion at that time)

 

Uggh. Buybacks are an atrocious use of capital.

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Disagree emphatically. What is accomplished by giving a bunch of money to people who didn't give a dime to Ford Motor Company when they bought stock?

Stock repurchase is a long term investment, it shows the company believes in itself and while it isn't the best for a short term investor, for long term divided investors it is a good option (though I can see a very valid argument you could make that the market really isn't about investing long term now) when there is a downturn in the market and you need to raise money you sell shares on the market, like what Ford did to get it though the restructuring. If the stock price is more depressed you have to issue more stock further depressing the price which leads to a vicious cycle. You can see this today as the stock is down because of a downgrade because they don't see upside on the stock. A long term investor should be worried that if a downturn happens that there will be a reverse stock split, and new stock issues at the now higher price. Leaving them with 1/2, 1/3 or 1/4 of the shares they once had.

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Ford didn't sell shares to get through the restructuring. They debt financed their restructuring.

 

And I really don't see why Ford should draw down their cash holdings in order to benefit a class of people who have collectively done nothing to ensure the success of Ford Motor.

They sold off hundreds of Millions of shares, they basically financed the VEBA with it.

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They sold off hundreds of Millions of shares, they basically financed the VEBA with it.

 

Neither the VEBA deal nor the convertible note offerings represent a funding mechanism where Ford sold shares to investors.

 

Therefore, neither individual nor institutional investors supported Ford's restructuring endeavors by purchasing shares from the company.

 

If you want to call the VEBA deal part of the restructuring, I guess that's open for discussion, but I would tend to treat it separately.

Edited by RichardJensen
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I can only imagine how much better that bottom line profit would be if we didn't have a stop sell on Transit Wagons along with ridiculous amounts of configurations ( 172 ) and mindbogglingly annoying discussion sessions explaining why we don't have THAt particular F-150 in stock along with $2000 rebates on that enging, 2300 on that one....5500 if you buy it this way, NOTHING if you use the 0 %......blah blah blah...they STILL need to streamline their order configurations....I keep on kicking this dead horse, but you cant make some of these stories up...total cluster F-------k.....and not aided by several dealers just putting "Up to $10000 off" all over their windows....

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I can only imagine how much better that bottom line profit would be if we didn't have a stop sell on Transit Wagons along with ridiculous amounts of configurations ( 172 ) and mindbogglingly annoying discussion sessions explaining why we don't have THAt particular F-150 in stock along with $2000 rebates on that enging, 2300 on that one....5500 if you buy it this way, NOTHING if you use the 0 %......blah blah blah...they STILL need to streamline their order configurations....I keep on kicking this dead horse, but you cant make some of these stories up...total cluster F-------k.....and not aided by several dealers just putting "Up to $10000 off" all over their windows....

I have to wonder if those numbers could be cut down by just building most popular configurations while making anything else special order..

Is there a way of grouping things to reduce that 172 down to below 100 or even 80?

 

Has it got to the point where Ford is not willing to give up any variation for fear of it hurting sales?

Edited by jpd80
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