│ NEWS
Ford Delivers First Quarter Revenue of $39.1B; $1.6B Net Income; $2.2B Adjusted Pre-Tax Profitwww.facebook.com/ford www.twitter.com/ford
Revenue | Net Income | Adjusted Pre-Tax Profit | EPS | Adjusted EPS | Auto Segment Auto Segment Operating |
(GAAP) | (GAAP) | (Non-GAAP) | (GAAP) | (Non-GAAP) | Operating Margin (GAAP) Cash Flow (GAAP) |
2 0 1 7 F I R S T Q U A R T E R F I N A N C I A L R E S U L T S
1Q 2017 $39.1B $1.6B $2.2B $0.40 $0.39 5.4% $2.0B |
B/(W) 1Q 2016 $1.4B $(0.9)B $(1.6)B $(0.21) $(0.29) (4.4) ppts $(0.7)B |
HIGHLIGHTS 1Q 2017*
First quarter total company revenue was $39.1B, up 4 percent year over year, driven by favorable mix
EPS was $0.40 and adjusted EPS was $0.39
Lower profit year over year driven by higher cost, lower volume and unfavorable exchange; higher cost due to warranty, investments in new products and emerging opportunities for future growth, and rising commodity costs
Average transaction prices in the U.S. were up $1,971 year over year, nearly four times more than the industry average of
$506, driven by F-150, Super Duty and Lincoln
Automotive results were driven by North America; Europe and Asia Pacific were also profitable. Ford Credit pre-tax profit was
$481M
For 2017: Continue to expect total company adjusted pre-tax profit to be about $9B, also a platform from which to build stronger results for 2018, led by gains in the core business
Expect full-year cost efficiencies of nearly $3B to mostly offset costs outside of investments in emerging opportunities
"This quarter was an investment in Ford's future. From announcing exciting vehicles like the all-new Expedition and Lincoln Navigator, to initiatives such as our investment in Argo AI, we are fortifying our core business, while also investing in emerging opportunities that will deliver profitable growth."
Mark Fields, President & CEO
"Ford's balance sheet remains strong - ready and able to support our plans for growth and to protect against adverse changes in the business cycle. We're also pleased to have rewarded shareholders with distributions in the quarter of $800 million, including a supplemental dividend."
Bob Shanks Executive Vice President & CFO
EXECUTING STRATEGIC PRIORITIES
Trucks: New F-150 going on sale this fall; Ranger to North America in 2019
Utilities: All-new Expedition going on sale this fall; Bronco returning globally in 2020
Performance: Mustang
best-selling sports car on the planet
Introduced all-new Lincoln Navigator; on sale this fall
Announced plans to manufacture all-new Lincoln SUV in China
Russia financial results improved year over year; ASEAN profitable and improved
Announced 13 new electric vehicles globally in the next five years
Unveiled the industry's first pursuit-rated hybrid police car
Announced investment in Argo AI to develop virtual driver system
*See endnote on page 4.
For news releases, related materials and high-resolution photos and video, visit www.media.ford.com. Follow at www.facebook.com/ford, www.twitter.com/fordir or www.youtube.com/fordvideo1
Ford Motor Company 1Q April 27, 2017
A U T O M O T I V E S E G M E N T R E S U L T S
Wholesales Revenue Market Share Operating Margin Pre-Tax Profit (GAAP) (GAAP) (GAAP)
1Q 2017 1,703K $36.5B 7.1% 5.4% $2.0B
B/(W) 1Q 2016 (17)K $1.3B (0.3) ppts (4.4) ppts $(1.5)B
Wholesales
Revenue
Market Share
Operating Margin
Pre-Tax Results
North America
Higher revenue driven by mix; wholesales lower year over year due to market share and lower dealer stock build
1Q 2017
771K
$24.0B
14.1%
8.3%
$2.0B
B/(W) 1Q 2016
(43)K
$0.1B
(0.5) ppts
(4.6) ppts
$(1.1)B
Market share decrease driven by lower fleet sales, as expected. U.S. retail share was up, reflecting higher share in trucks, utilities and Lincoln
For 2017: Continue to expect North America operating margin and profit to be strong, but lower than 2016, due to headwinds on commodities and increased investment in emerging opportunities, offset partially by net efficiencies across all other remaining cost categories
South America
All key metrics improved for the second consecutive quarter
1Q 2017
70K
$1.1B
9.0%
(22.5)%
$(244)M
B/(W) 1Q 2016
7K
$0.3B
0.6 ppts
7.9 ppts
$12M
Wholesales were up 11 percent; revenue up 29 percent
Market share also improved due to performance of Ka and Ranger
For 2017: Continue to expect South America's loss to improve as a result of improving market factors as the economy begins to recover.
Europe
1Q 2017
449K
$7.6B
8.1%
2.3%
$176M
B/(W) 1Q 2016
50K
$0.7B
0.2 ppts
(4.0) ppts
$(258)M
Region saw double-digit growth and continued profitability in the quarter
Market share higher due to performance of Kuga and commercial vehicles
For 2017: Continue to expect Europe to remain profitable, although below 2016 levels, due to weaker sterling, higher cost associated with launch of Fiesta and EcoSport, and continued investment for future growth
1Q 2017
30K
$0.6B
3.8%
(12.4)%
$(80)M
B/(W) 1Q 2016
(16)K
$(0.3)B
(0.8) ppts
(10.9) ppts
$(66)M
Middle East & Africa
Key metrics driven by unfavorable dealer stock changes, lower market share and lower industry volume in the Middle East
SAAR down 12 percent in markets where we participate
For 2017: Continue to expect results in the region to improve compared to 2016 due to lower cost and favorable exchange, with lower volume a partial offset
Asia Pacific
1Q 2017
383K
$3.2B
3.4%
3.9%
$124M
B/(W) 1Q 2016
(15)K
$0.5B
(0.4) ppts
(4.3) ppts
$(96)M
Results in China drove the year over year changes in key metrics, except for revenue; lower volume due to sales being pulled ahead to fourth quarter of last year as tax incentive was set to expire
Results in all major markets outside of China improved
For 2017: Continue to expect profits to improve from 2016 due to higher volume. Net pricing will be lower due to negative industry pricing in China, while exchange expected to be unfavorable due to weaker RMB
F O R D C R E D I T R E S U L T S
Pre-Tax Results
1Q 2017
$481M
B/(W) 1Q 2016
$(33)M
Ford Credit
Receivables grew year over year, while pre-tax profit was lower, as expected
All key metrics in line with expectations
For 2017: On track to deliver full-year pre-tax profit of about $1.5B
Statements included or incorporated by reference 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:
Decline in industry sales volume, particularly in the United States, Europe, or China, due to financial crisis, recession, geopolitical events, or other factors;
Lower-than-anticipated market acceptance of Ford's new or existing products or services, or failure to achieve expected growth;
Market shift away from sales of larger, more profitable vehicles beyond Ford's current planning assumption, particularly in the United States;
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, protectionist trade policies, or other events;
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 other postretirement liabilities impairing liquidity or financial condition;
Worse-than-assumed economic and demographic experience for pension and other 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;
Adverse effects on results from a decrease in or cessation or claw back of government incentives related to investments;
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, financial institutions, or other third parties seeking to increase their share of financing Ford vehicles; and
New or increased credit regulations, consumer or data protection regulations, or other regulations resulting in higher costs and/or additional financing restrictions.
We 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. Our forward-looking statements speak only as of the date of their initial issuance, and we do 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, see "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2016, as updated by subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Ford Motor Company [NYSE:F] releases its 2017 first quarter financial results at 7:00 a.m. EDT today.
Following the release, Mark Fields, Ford president and chief executive officer, and Bob Shanks, Ford executive vice president and chief financial officer, will host a conference call at 9 a.m. EDT to discuss the results.
The presentation (listen-only) and supporting materials will be available at www.shareholder.ford.com. Representatives of the investment community and the news media will have the opportunity to ask questions on the call.
Access Information - Thursday, April 27, 2017
Ford Earnings Call: 9 a.m. EDT Toll-Free: 1.877.870.8664
International: 1.970.297.2423 Passcode: Ford Earnings
REPLAY
(Available after 1:00 p.m. EDT the day of the event through Thursday, May 4, 2017) www.shareholder.ford.com
Toll-Free: 1.855.859.2056
International: 1.404.537.3406
Passcode: 95413407
About Ford Motor Company
Ford Motor Company is a global automotive and mobility company based in Dearborn, Michigan. With about 202,000 employees and 62 plants worldwide, the company's core business includes designing, manufacturing, marketing and servicing a full line of Ford cars, trucks and SUVs, as well as Lincoln luxury vehicles. To expand its business model, Ford is aggressively pursuing emerging opportunities with investments in electrification, autonomy and mobility. Ford provides financial services through Ford Motor Credit Company. For more information regarding Ford and its products and services, please visit www.corporate.ford.com.
Contact(s): | Media Inquiries: | Equity Investment | Fixed Income | Shareholder |
Brad Carroll | Community: Dawn Dombroski | Investment Community: Karen Rocoff | Inquiries: 1.800.555.5259 or | |
1.313.390.5565 | 1.313.845.2868 | 1.313.621.0965 | 1.313.845.8540 | |
bcarro37@ford.com | fordir@ford.com | fixedinc@ford.com | stockinf@ford.com |
The following applies to the information throughout this release:
See tables at the end of this release for the nature and amount of special items, and reconciliations of the non-GAAP financial measures designated as "adjusted" to the most comparable financial measures calculated in accordance with U.S. generally accepted accounting principles ("GAAP").
Wholesale unit sales and production volumes include Ford brand and Jiangling Motors Corporation ("JMC") brand vehicles produced and sold in China by our unconsolidated affiliates; revenue does not includes these sales. See materials supporting the April 27, 2017 conference call at www.shareholder.ford.com for further discussion of wholesale unit volumes.
Automotive segment operating margin is defined as Automotive segment pre-tax profit divided by Automotive segment revenue.
References to records related to Automotive segment pre-tax profit, Automotive segment operating cash flow, Automotive segment operating margin and Automotive business unit results are since at least 2000.
C O N S O L I D AT E D I N C O M E S T AT E M E N T
FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT (in millions, except per share amounts)Revenues
For the periods ended March 31,
2016 2017
First Quarter (unaudited)
Automotive $ 35,257 $ 36,475
Financial Services 2,461 2,669
Other - 2
Total revenues 37,718 39,146
Costs and expenses
Cost of sales 30,517 32,708
Selling, administrative, and other expenses 2,690 2,764
Financial Services interest, operating, and other expenses 2,060 2,232
Total costs and expenses 35,267 37,704
Interest expense on Automotive debt 200 279
Non-Financial Services other income/(loss), net 768 712
Financial Services other income/(loss), net 91 22
Equity in net income of affiliated companies 541 346
Income before income taxes 3,651 2,243
Provision for/(Benefit from) income taxes 1,196 649
Net income 2,455 1,594
Less: Income/(Loss) attributable to noncontrolling interests 3 7
Net income attributable to Ford Motor Company $ 2,452 $ 1,587
EARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK
Basic income $ 0.62 $ 0.40
Diluted income 0.61 0.40
Cash dividends declared 0.40 0.20
C O N S O L I D AT E D B A L A N C E S H E E T
FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (in millions)December 31,
March 31,
2016 2017
(unaudited)
ASSETS | ||
Cash and cash equivalents | $ 15,905 | $ 17,823 |
Marketable securities | 22,922 | 22,166 |
Financial Services finance receivables, net | 46,266 | 48,605 |
Trade and other receivables, less allowances of $392 and $401 | 11,102 | 10,685 |
Inventories | 8,898 | 10,535 |
Other assets | 3,368 | 3,414 |
Total current assets | 108,461 | 113,228 |
Financial Services finance receivables, net | 49,924 | 50,694 |
Net investment in operating leases | 28,829 | 27,914 |
Net property | 32,072 | 32,668 |
Equity in net assets of affiliated companies | 3,304 | 3,642 |
Deferred income taxes | 9,705 | 10,055 |
Other assets | 5,656 | 5,893 |
Total assets | $ 237,951 $ | 244,094 |
LIABILITIES | ||
Payables | $ 21,296 | $ 23,257 |
Other liabilities and deferred revenue | 19,316 | 18,790 |
Automotive debt payable within one year | 2,685 | 3,100 |
Financial Services debt payable within one year | 46,984 | 46,157 |
Total current liabilities | 90,281 | 91,304 |
Other liabilities and deferred revenue | 24,395 | 24,583 |
Automotive long-term debt | 13,222 | 13,110 |
Financial Services long-term debt | 80,079 | 83,610 |
Deferred income taxes | 691 | 749 |
Total liabilities | 208,668 | 213,356 |
Redeemable noncontrolling interest EQUITY | 96 | 97 |
Common Stock, par value $.01 per share (3,984 million shares issued of 6 billion authorized) | 40 | 40 |
Class B Stock, par value $.01 per share (71 million shares issued of 530 million authorized) | 1 | 1 |
Capital in excess of par value of stock | 21,630 | 21,637 |
Retained earnings | 15,634 | 16,992 |
Accumulated other comprehensive income/(loss) | (7,013) | (6,929) |
Treasury stock | (1,122) | (1,122) |
Total equity attributable to Ford Motor Company | 29,170 | 30,619 |
Equity attributable to noncontrolling interests | 17 | 22 |
Total equity | 29,187 | 30,641 |
Total liabilities and equity $ 237,951 $ 244,094
C O N S O L I D AT E D S T AT E M E N T O F C A S H F L O W S
FORD MOTOR COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (in millions)For the periods ended March 31, | ||||||
2016 | 2017 | |||||
First Quarter | ||||||
(unaudited) | ||||||
Cash flows from operating activities | ||||||
Net cash provided by/(used in) operating activities | 4,149 | $ | 4,336 | |||
Cash flows from investing activities | ||||||
Capital spending | (1,511 | ) | (1,706 | |||
Acquisitions of finance receivables and operating leases | (12,677 | ) | (13,467 | |||
Collections of finance receivables and operating leases | 9,674 | 10,695 | ||||
Purchases of equity and debt securities | (8,231 | ) | (8,878 | |||
Sales and maturities of equity and debt securities | 5,679 | 9,551 | ||||
Settlements of derivatives | 104 | 156 | ||||
Other | (13 | ) | 10 | |||
Net cash provided by/(used in) investing activities | (6,975 | ) | (3,639 | |||
Cash flows from financing activities | ||||||
Cash dividends | (1,588 | ) | (795 | |||
Purchases of Common Stock | (145 | ) | - | |||
Net changes in short-term debt | (121 | ) | 658 | |||
Proceeds from issuance of other debt | 15,623 | 13,253 | ||||
Principal payments on other debt | (9,431 | ) | (11,911 | |||
Other | (59 | ) | (85 | |||
Net cash provided by/(used in) financing activities | 4,279 | 1,120 | ||||
Effect of exchange rate changes on cash and cash equivalents | 192 | 101 | ||||
Net increase/(decrease) in cash and cash equivalents | 1,645 | $ | 1,918 | |||
Cash and cash equivalents at January 1 | 14,272 | $ | 15,905 | |||
Net increase/(decrease) in cash and cash equivalents | 1,645 | 1,918 | ||||
Cash and cash equivalents at March 31 | 15,917 | $ | 17,823 |
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The tables below provide supplemental consolidating financial information. The data is presented by our reportable segments, Automotive and Financial Services. All Other, Special Items, and Adjustments include our operating segments that did not meet the quantitative threshold to qualify as a reportable segment, special items, eliminations of intersegment transactions, and deferred tax netting.
Selected Income Statement Information. The following table provides supplemental income statement information, by segment (in millions):
For the period ended March 31, 2017
All Other,
Automotive
Financial
Services
Special Items,
& AdjustmentsConsolidated
Revenues $ 36,475 $ 2,669 $ 2 $ 39,146
Total costs and expenses 35,480 2,232 (8) 37,704
Interest expense on Automotive debt - | - | 279 | 279 |
Equity in net income of affiliated companies 340 | 7 | (1) | 346 |
Other income/(loss), net 630 22 82 734
Provision for/(Benefit from) income taxes 560 | 148 | (59) | 649 |
Income/(loss) before income taxes 1,965 466 (188) 2,243
Net income/(loss) $ 1,405 $ 318 $ (129) $ 1,594
Selected Balance Sheet Information. The following tables provide supplemental balance sheet information, by segment, (in millions):
March 31, 2017
All Other,
Financial
Special Items,
Assets Automotive Services & Adjustments Consolidated
Cash and cash equivalents | $ 9,549 | $ 8,268 | $ 6 | $ 17,823 |
Marketable securities | 18,479 | 3,687 | - | 22,166 |
Financial Services finance receivables, net - | 48,605 | - | 48,605 |
Trade and other receivables, less allowances 4,618 6,067 - 10,685
Inventories 10,535 | - | - | 10,535 |
Other assets 2,483 931 - 3,414
Receivable from other segments 13 | 1,855 | (1,868) | - |
Total current assets 45,677 69,413 (1,862) 113,228
Financial Services finance receivables, net - | 50,694 | - | 50,694 |
Net investment in operating leases 1,486 26,428 - 27,914
Net property 32,504 | 161 | 3 | 32,668 |
Equity in net assets of affiliated companies 3,463 165 14 3,642
Deferred income taxes 13,639 | 206 | (3,790) | 10,055 |
Other assets 4,323 1,517 53 5,893
Receivable from other segments - | 1,064 | (1,064) | - |
Total assets $ 101,092 $ 149,648 $ (6,646) $ 244,094
Financial
All Other, Special Items,
Liabilities Automotive Services & Adjustments Consolidated
Payables | $ 22,146 | $ 1,110 | $ 1 | $ 23,257 |
Other liabilities and deferred revenue | 17,802 | 976 | 12 | 18,790 |
Automotive debt payable within one year 3,100 | - | - | 3,100 |
Financial Services debt payable within one year - 46,157 - 46,157
Payable to other segments 1,852 | - | (1,852) | - |
Total current liabilities 44,900 48,243 (1,839) 91,304
Other liabilities and deferred revenue 23,493 | 1,087 | 3 | 24,583 |
Automotive long-term debt 13,110 - - 13,110
Financial Services long-term debt - | 83,610 | - | 83,610 |
Payable to other segments 1,064 | - | (1,064) | - |
Deferred income taxes 183 4,356 (3,790) 749
Total liabilities $ 82,750 $ 137,296 $ (6,690) $ 213,356
Selected Cash Flow Information. The following tables provide supplemental cash flow information, by segment, (in millions):
For the period ended March 31, 2017
All Other,
Financial
Special Items,
Cash flows from operating activities Automotive Services & Adjustments Consolidated
Net cash provided by/(used in) operating activities $ 3,262 $ 1,084 $ (10) $ 4,336
Reconciling Adjustments to Automotive Segment Operating Cash Flows*
Automotive capital spending (1,696) |
Funded pension contributions 236 |
Net cash flows from non-designated derivatives 134
Other 52 |
Separation payments 28
Automotive Segment Operating Cash Flows $ 2,016
* We measure and evaluate our Automotive segment operating cash flow on a different basis than Net cash provided by/(used in) operating activities in our consolidated statement of cash flows. Automotive segment operating cash flow includes additional elements management considers to be related to our Automotive operating activities, primarily capital spending and non-designated derivatives, and excludes outflows for funded pension contributions, separation payments, and other items that are considered operating cash flows under U.S. GAAP. The table above quantifies the reconciling adjustments to Net cash provided by/(used in) operating activities for the period ended March 31, 2017.
For the period ended March 31, 2017
All Other,
Financial
Special Items,
Cash flows from investing activities Automotive Services & Adjustments Consolidated
Capital spending $ (1,696) $ (10) $ - $ (1,706) Acquisitions of finance receivables and operating leases - (13,467) - (13,467)
Collections of finance receivables and operating leases - | 10,695 | - | 10,695 |
Purchases of equity and debt securities (6,994) (1,883) (1) (8,878)
Sales and maturities of equity and debt securities 8,072 | 1,479 | - | 9,551 |
Other (4) | 20 | (6) | 10 |
Settlements of derivatives 134 22 - 156
Net cash provided by/(used in) investing activities $ (512) | $ (3,147) | $ 20 | $ (3,639) |
Investing activity (to)/from other segments (24) (3) 27 -
Cash flows from financing activities Automotive
Financial Services
All Other, Special Items,
& AdjustmentsConsolidated
Cash dividends $ (795) | $ - | $ - | $ (795) |
Purchases of Common Stock - - - -
Net changes in short-term debt (51) | 709 | - | 658 |
Proceeds from issuance of other debt 10 13,243 - 13,253
Principal payments on other debt (180) | (11,731) | - | (11,911) |
Other (50) (35) - (85)
Financing activity to/(from) other segments - | 12 | (12) | - |
Net cash provided by/(used in) financing activities $ (1,066) $ 2,198 $ (12) $ 1,120
Effect of exchange rate changes on cash and cash equivalents $ 45 | $ 56 | $ - | $ 101 |
We use both GAAP and non-GAAP financial measures for operational and financial decision making, and to assess Company and segment business performance. The non-GAAP measures listed below are intended to be considered by users as supplemental information to their equivalent GAAP measures, to aid investors in better understanding our financial results. We believe that these non-GAAP measures provide useful perspective on underlying business results and trends, and a means to assess our period-over-period results. These non-GAAP measures should not be considered as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. These non- GAAP measures may not be the same as similarly titled measures used by other companies due to possible differences in method and in items or events being adjusted.
Total Company Adjusted Pre-tax Profit (Most Comparable GAAP Measure: Net income attributable to Ford) - The non- GAAP measure is useful to management and investors because it allows users to evaluate our pre-tax results excluding pre-tax special items. Pre-tax special items consist of (i) pension and OPEB remeasurement gains and losses that are not reflective of our underlying business results, (ii) significant restructuring actions related to our efforts to match production capacity and cost structure to market demand and changing model mix, and (iii) other items that we do not necessarily consider to be indicative of earnings from ongoing operating activities. When we provide guidance for adjusted pre-tax profit, we do not provide guidance on a net income basis because the GAAP measure will include potentially significant special items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end, specifically pension and OPEB remeasurement gains and losses.
Adjusted Earnings Per Share (Most Comparable GAAP Measure: Earnings Per Share) - Measure of Company's diluted net earnings per share adjusted for impact of pre-tax special items (described above), and tax special items. The measure provides investors with useful information to evaluate performance of our business excluding items not indicative of underlying run rate of our business. When we provide guidance for adjusted earnings per share, we do not provide guidance on an earnings per share basis because the GAAP measure will include potentially significant special items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end, specifically pension and OPEB remeasurement gains and losses.
The following tables provide reconciliations of non-GAAP measures to the most comparable GAAP measures.
3
7
11
$
$
$
2,455
(1,196)
3,651
(186)
3,837
$
$
$
1,594
(649)
2,243
24
2,219
$
$
$
4,607
(2,189)
6,796
(3,579)
10,375
N E T I N C O M E R E C O N C I L I A T I O N T O A D J U S T E D P R E - T A X P R O F I T
(Mils)
1Q
2016 2017
Memo:
FY 2016
Net income / (Loss) attributable to Ford (GAAP)
Income / (Loss) attributable to non-controlling interests Net income / (Loss)
Less: (Provision for) / Benefit from income taxes Income / (Loss) before income taxes
Less: Special items pre-tax
Adjusted pre-tax profit (Non-GAAP)
$ 2,452
$ 1,587
$ 4,596
(Mils) | 1Q | |
2016 | 2017 | |
Separation-related actions | $ (174) | $ (22) |
Other Items San Luis Potosi plant cancellation | $ - | $ 46 |
Japan, Indonesia market closure | (12) | - |
Total other items | $ (12) | $ 46 |
Total pre-tax special items | $ (186) | $ 24 |
Tax special items | $ (66) | $ (15) |
Memo: Special items impact on earnings per share* | $ (0.07) | $ 0.01 |
* Includes related tax effect on special items and tax special items
E A R N I N G S P E R S H A R E R E C O N C I L I A T I O N T O A D J U S T E D E A R N I N G S P E R S H A R E
Diluted After-Tax Results (Mils) Diluted after-tax results (GAAP)
1Q 2017
$ 1,587
Less: Impact of pre-tax and tax special items 9
Basic and Diluted Shares(Mils) | |
Basic shares (average shares outstanding) | 3,976 |
Net dilutive options and unvested restricted stock units | 23 |
Diluted shares | 3,999 |
Adjusted net income - diluted (Non-GAAP)
$ 1,578
Earnings per share - diluted (GAAP)
$ 0.40
Less: Net impact of adjustments 0.01
Adjusted earnings per share - diluted (Non-GAAP)
$ 0.39
Ford Motor Company published this content on 27 April 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 28 April 2017 09:49:14 UTC.
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