Ford Motor Company (NYSE: F) today highlighted its commitment to
reinvent the future of mobility by transforming the company through
operational fitness and allocating capital to high-growth and
high-margin product segments and smart vehicles and services.
Presenting at the Deutsche Bank Global Auto Industry Conference in
Detroit, the company also provided preliminary results for full-year
2018, provided high-level guidance for 2019 and highlighted areas of
strategic momentum throughout the company.
“Over the last 19 months, we have worked to reshape and transform our
company – sharpening our competitiveness, taking actions to improve our
profitability and returns, and investing in our future. These actions
support our drive to satisfy today’s customers – and those of tomorrow,”
said Jim Hackett, president and CEO.
Jim Farley, president, Global Markets, shared details of the company’s
major global product wave, which focuses on trucks, commercial vehicles
“We are now beginning to see the results of our capital shift away from
traditional sedans to trucks and SUVs with new utility nameplates
globally, including Territory in China, Bronco, and a slightly smaller,
yet-to-be named off-roader in North America,” Farley said. “2018 was a
growth year for F-Series, especially Super Duty in North America.
Transit and Ranger are now in all global markets in high volume with
Farley also outlined actions the company is taking to reshape its
regional businesses, including:
“We are bolstering our portfolio to capture a healthy share of higher
growth and higher profit segments and partnering where appropriate to
improve profitability and returns,” Farley said. “I’m very confident in
our plan and our ability to execute.”
Bob Shanks, chief financial officer, reported positive company operating
results despite external challenges, including commodity costs,
unfavorable exchange effects and policy changes. He also cited other
factors, including a decline of business in China and higher warranty
costs in North America.
“For 2019, we see the potential for year-over-year improvement in
company revenue, EBIT and adjusted operating cash flow,” Shanks said.
“Our imperative to sustain an investment grade rating and a strong
balance sheet remains the foundation of our business. For 2019, we
expect to be able to fully fund our business needs, while maintaining
cash and liquidity levels at or above our target levels.”
For 2019, Shanks gave other high-level guidance, emphasizing the dynamic
and challenging nature of the global external environment:
2018 Preliminary Results*
For full-year 2018, the company is announcing preliminary EPS results of
$0.92, and adjusted EPS of $1.30 – in line with the company’s most
recent guidance. The company ended the year with a strong balance sheet,
with cash of $23.1 billion and liquidity of $34.2 billion.
2018 results also will include the impact of a non-cash pre-tax
remeasurement loss of $877 million related to the year-end revaluation
of global pension and other postretirement employee benefits (OPEB)
plans, also known as pension mark-to-market adjustment. The loss was
almost exclusively related to lower asset returns as a result of the
deterioration in the financial markets at the end of the year. While the
remeasurement generated a mark-to-market loss for accounting purposes,
the company’s funded pension plans remain fully funded as a result of
the company’s de-risking strategy.
2019 First Quarter Dividend
Ford’s Board of Directors declared a first quarter regular dividend of
$0.15 per share on the company’s outstanding Class B and common stock.
The first quarter regular dividend maintains the same level as the
regular dividends paid in 2018. The first quarter regular dividend is
payable on March 1 to shareholders of record at the close of business on
Jan. 31. In 2018, we distributed $3.1 billion to shareholders and by
year-end 2018, cumulative distributions to shareholders totaled $18.4
billion since the company’s regular dividend was restored in 2012.
To access the presentation materials and a listen-only audio webcast,
*This release includes Ford’s preliminary view of 2018 results. Ford’s
actual results could differ materially from the preliminary results
included in this release. Ford will provide additional detail on 2018
results in its earnings presentation on January 23, 2019. Ford’s Annual
Report on Form 10-K, which will be filed in February, will include
Ford’s audited financial results.
Note: See table later in this release for reconciliation of the non-GAAP
financial measure designated as “adjusted earnings per share” to
“earnings per share,” the most comparable financial measure calculated
in accordance with U.S. generally accepted accounting principles
(“GAAP”). Adjusted earnings per share is a non-GAAP financial measure
because it excludes special items. The measure provides investors with
useful information to evaluate the performance of Ford’s business
excluding items not indicative of the underlying run rate.
About Ford Motor Company
Ford Motor Company is a global company based in Dearborn, Michigan.
The company designs, manufactures, markets and services a full line of
Ford cars, trucks, SUVs, electrified vehicles and Lincoln luxury
vehicles, provides financial services through Ford Motor Credit Company
and is pursuing leadership positions in electrification, autonomous
vehicles and mobility solutions. Ford employs approximately 200,000
people worldwide. For more information regarding Ford, its products and
Ford Motor Credit Company, please visit www.corporate.ford.com.
Cautionary Note on Forward-Looking Statements
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,
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, 2017, as updated by our subsequent Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K.
Preliminary Company Earnings Per Share Reconciliation to Adjusted
Earnings Per Share
Diluted After-Tax Results
Basic and Diluted Shares
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