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Ford Motor Company reports first quarter 2019 results

Auto News - Published on Tue, 30 Apr 2019

Image Source: wikipedia.org
Ford Motor Company has released its first quarter 2019 financial results as it accelerates its global redesign efforts. Revenue was down on lower volume, driven by global industry decline and the discontinuation of the North America Focus, as well as the production ramp up for the all-new Explorer. Net income was down, primarily driven by special items charges of about USD 600 million, the vast majority associated with the exit of heavy truck operations in South America, announced in February, and the redesign of European operations including the restructuring of the company’s Russia joint venture, announced in March. Company adjusted EBIT was USD 2.4 billion, up USD 262 million year over year, driven by strong performance in North America and at Ford Credit.

In North America, share and revenue both improved year over year, driven by the performance of franchise strengths in trucks and utilities. EBIT was USD 2.2 billion, up year over year, due to stronger net pricing and product mix. EBIT margin was 8.7%, improved by nearly a percentage point from the same quarter last year.

Meanwhile, F-Series continued to perform well, with sales and segment share both up year over year and retail average transaction price flat at about USD 47,000 per vehicle, despite all-new products from competitors. The region also will benefit this year from a significant wave of product launches focused on trucks and utilities, including Ranger, Super Duty, Explorer and Escape, as well as the all-new Aviator and all-new Corsair from Lincoln. By the end of 2020, Ford will have replaced 75% of its current U.S. product lineup.

Outside North America, the company had an EBIT loss of USD 196 million, which was an improvement of USD 632 million from the prior quarter, with Europe, Asia Pacific Operations and Middle East and Africa all profitable. In South America, Ford is moving toward a more lean and agile business model, and announced in the quarter that it would close its São Bernardo manufacturing facility, ceasing production of heavy trucks and the Fiesta small car.

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Posted By : Rabi Wangkhem on Tue, 30 Apr 2019
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