3Q 2016 EARNINGS REVIEW October 27, 2016 1
Business Review Appendix Financial Headlines 3 Business Unit Guidance A1 Creating Value 4 Reconciliations to GAAP Other Highlights 5 Non-GAAP Financial Measures A2 Business Environment 6 Adjusted Pre-Tax Profit A3 Adjusted Effective Tax Rate A4 Financial Review Special Items A5 Key Financial Summary 8 Adjusted Earnings Per Share A6 Total Company 9 Managed Receivables A7 Automotive 10 - 11 Managed Leverage A8 North America 12 - 13 Supplemental Data South America 14 - 15 Automotive Debt A9 Europe 16 - 17 China Unconsolidated Affiliates A10 Middle East & Africa 18 Volume Related Asia Pacific 19 - 20 Industry SAAR A11 Financial Services – Ford Credit 21 - 23 Market Share A12 Cash Flow and Balance Sheet Summary 24 - 25 Production Volumes A13 Planning Assumptions and Guidance 26 - 27 Dealer Stocks A14 Key Takeaways 28 Other Definitions and Calculations A15
FINANCIAL HEADLINES EPS Total Company Automotive Automotive Total Company Adjusted Pre-Tax Adjusted Total Company Global Segment Segment Net Income Results* EPS* Revenue Market Share Operating Margin Operating Cash Flow 3Q $1.0B $1.4B $0.26 $35.9B 7.5% 3.3% $(2.0)B 2016 B/W $1.2B $1.7B $0.26 $2.2B 0.1 ppts 4.4 ppts $4.8B 3Q 2015 * Excludes special items; see Appendix for detail, reconciliation to GAAP, and definitions Adjusted Pre-Tax Profit Of $1.4 Billion; Key Metrics Lower Year-Over-Year As Expected 3
CREATING VALUE – PROGRESS THIS QUARTER ! GROWTH RETURNS RISK REWARDS Launched all-new Super Europe profitable for the Contributed over Distributed $600 million Duty and all-new Lincoln 6th quarter in a row -- $200 million to our of dividends to Continental in NA best 3Q since 2007 funded pension plans shareholders, bringing YTD shareholder actions Launched Transit Kombi Record 3Q profit in AP to $2.9 billion Van and Kuga in AP with market share growth YoY Global Lincoln sales up 17% from a year ago Best quarterly profit for with best-ever 3Q retail Ford Credit since 2011 sales in China Announced fully autonomous vehicle for ride sharing in 2021 Acquired Chariot, a shuttle service with 4 plans to grow globally
OTHER HIGHLIGHTS Lincoln nearly y tripled d China sales s in All-new 2017 Super r Duty earned All-new Ka Ka+ imported d from India to Third Quarter 13th ‘Truck of Texas’ award at TAWA Euro rope Truck Rodeo Acquire Ac red Chario riot, a San Francisco Ford entered d In Indian car-sh sharin ring Announced four inves estm tmen ents and based shuttle service with plans to market rket with investment in Zoomcar colla laboration borations in key autonomou mous s grow globally vehicle le technologie ologies 5
BUSINESS ENVIRONMENT Global growth outlook for 2016 remains modest at just under 3% Full year GDP outlook reduced for U.S. on weak first half data; consumer spending remains solid with vehicle sales at high plateau Europe growth steady; U.K. data improving after initial Brexit shock but tone heading into formal exit negotiations driving a weaker sterling China growth still supported by consumer and services sector strength, with vehicle purchase tax reduction in place through year end Russia and Brazil economies show signs of bottoming out 6
FINANCIAL REVIEW
KEY FINANCIAL SUMMARY 3Q YTD B / (W) B / (W) 2016 2015 2016 2015 Wholesales (000) 1,530 (66) 4,944 84 Revenue (Bils) $ 35.9 $ (2.2) 113.1 3.8 3Q profitable, lower YoY Results (Mils) Automotive Segment $ 1,084 $(1,678) $ 7,380 $ 134 Wholesale volume down Financial Services Segment 552 26 1,436 (50) All Other (223) (60) (573) (31) 4%; revenue down 6% Total Company adjusted pre-tax results $ 1,413 $(1,712) $ 8,243 $ 53 Special items pre-tax (26) (192) (330) (496) Operating cash flow Income before income taxes $ 1,387 $(1,904) $ 7,913 $ (443) (Provision for) / Benefit from income taxes (426) 673 (2,525) 324 negative; liquidity strong Net Income $ 961 $(1,231) $ 5,388 $ (119) Less: Income / (Loss) attributable to non-controlling interests 4 4 9 7 First Nine Months – key Net income / (loss) attributable to Ford $ 957 $(1,235) $ 5,379 $ (126) metrics strong and about Earnings per share (Diluted) $ 0.24 $ (0.31) $ 1.35 $ (0.03) Adjusted earnings per share (Diluted) 0.26 (0.26) 1.46 0.11 the same as a year ago Automotive Segment (Bils) Operating cash flow $ (2.0) $ (4.8) $ 4.9 $ (0.3) Cash $ 24.3 $ 2.1 $ 24.3 $ 2.1 Debt (13.1) (0.3) (13.1) (0.3) Net cash $ 11.2 $ 1.8 $ 11.2 $ 1.8 8
TOTAL COMPANY 3Q 2016 ADJUSTED PRE-TAX RESULTS* (MILS) $1,084 $1,413 $1,262 Automotive segment PBT driven by NA, Europe $552 and record 3Q in AP Strong Financial Services $138 $131 profit $(152) $(223) All Other primarily net $(295) Automotive Segment Financial interest expense Asia Services North South Middle East Total America America Europe & Africa Pacific Segment All Other B / (W) 3Q 2015 $(1,712) $(1,647) $(132) $129 $(137) $109 $26 $(60) 9 * Excludes special items; see Appendix for detail, reconciliation to GAAP, and definitions
AUTOMOTIVE SEGMENT 3Q 2016 KEY METRICS All key metrics lower than a year ago driven by NA Wholesales Revenue Market Share Operating Margin Pre-Tax Results Wholesales down 4%; (000) (Bils) (Pct) (Pct) (Mils) revenue down 7% 7.6% 7.5% $35.8 7.7% $2,762 1,596 $33.3 1,530 Global market share lower due to NA, SA and MEA 3.3% $1,084 Global SAAR up 3% Operating margin and Auto 4% 7% 0.1 ppts 4.4 ppts 61% PBT down sharply 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 YTD metrics strong and YTD: 4,860 4,944 $102.7 $105.5 7.4% 7.4% 7.1% 7.0% $7,246 $7,380 about the same as last 2% 3% -- ppts 0.1 ppts 2% year 10
AUTOMOTIVE SEGMENT 3Q 2016 PRE-TAX RESULTS (MILS) Lower PBT driven by lower Material Excl. Commodities $(285) Industry $ (57) Commodities 131 Share (229) Warranty (599) Stocks (759) volume and higher $2,762 Mix / Other (51) Other 145 warranty cost related to Pricing $1,056 Engineering $(241) Incentives / Other (440) Spending Related (152) recall $1,084 Other (152) $616 Unfavorable dealer stocks $60 $(105) due to stock reductions $(545) $(608) this year versus increases $(1,678) $(1,096) last year in NA and Europe Market Factors Total Cost Volume / Net Contribution Structural Net pricing higher, mainly 3Q 2015 3Q 2016 Mix Pricing Cost Cost Exchange Other NA 11
AUTOMOTIVE SEGMENT – NORTH AMERICA 3Q 2016 KEY METRICS All key metrics lower than last year Wholesales Revenue Market Share Operating Margin Pre-Tax Results Top line down due to lower (000) (Bils) (Pct) (Pct) (Mils) volume – unfavorable $2,909 stock changes and lower 14.1% $23.7 12.3% 13.6% 771 $21.8 687 market share and industry NA market share down due 5.8% $1,262 to U.S. retail (cars and SUVs) and fleet (rental) 11% 8% 0.5 ppt 6.5 ppt 57% NA SAAR lower – U.S. 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 down 0.5M units YTD: 2,265 2,316 $67.0 $69.5 14.1% 14.2% 10.9% 10.1% $7,316 $7,045 YTD metrics strong, though 2% 4% 0.1 ppts 0.8 ppts 4% mixed 12
AUTOMOTIVE SEGMENT – NORTH AMERICA 3Q 2016 PRE-TAX RESULTS (MILS) Lower PBT driven by Super Mat’l, Excl. Commodities $(296) Industry $(133) $2,909 Commodities 95 Share (283) Duty launch, dealer stock Warranty (591) Stocks (585) Mix / Other (71) Other 79 reduction this year versus Pricing $ 663 Engineering $(112) an increase last year for Incentives / Other (115) Spending Related (116) $1,262 Other (135) F-150, normalization of $548 series mix on F-150 and $ - previously announced door $(47) $(363) latch recall $(1,647) $(713) $(1,072) U.S. ATPs increased more Market Factors Total Cost than industry average, Volume / Net Contribution Structural 3Q 2015 3Q 2016 Mix Pricing Cost Cost Exchange Other driven by higher net pricing 13
AUTOMOTIVE SEGMENT – SOUTH AMERICA 3Q 2016 KEY METRICS 3Q and YTD metrics down from a year ago as Wholesales Revenue Market Share Operating Margin Pre-Tax Results economic conditions (000) (Bils) (Pct) (Pct) (Mils) remained challenging 10.2% 102 9.4% Top line lower due to lower $1.6 89 (10.3)% volume and unfavorable $1.3 $(163) exchange (22.1)% $(295) Market share lower due to 13% 15% 0.8 ppts 11.8 ppts 81% Fiesta in Brazil 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 SA and Brazil SAARs YTD: 301 235 $4.6 $3.4 10.0% 8.9% (11.7)% (23.9)% $(537) $(816) declined at lowest pace 22% 25% 1.1 ppts 12.2 ppts 52% this year 14
AUTOMOTIVE SEGMENT – SOUTH AMERICA 3Q 2016 PRE-TAX RESULTS (MILS) $7 $(3) $96 Higher loss driven by $(56) unfavorable effects of inflation and weaker local $(163) Industry $ (7) $(176) Share (22) currencies exceeding Stocks/Other (27) higher net pricing $(295) Cost performance $(132) continued to be favorable Economics / Volume / Exchange Cost Balance 3Q 2015 3Q 2016 Mix Net of Pricing Performance Sheet Other 15
Recommend
More recommend
