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Last Update: 30-Oct-12 08:53 ET
Ford beats on EPS but misses on revenues
Ford (F) reported third quarter earnings of $0.40 per share, excluding non-recurring items, $0.10 better than the Capital IQ consensus of $0.30, while Automotive sector revenues fell 2.9% year/year to $30.2 billion versus the $31.22 billion consensus. Operations, Cash Flow and Regional commentary: Automotive operating-related cash flow was $700 million. The company finished the third quarter with Automotive gross cash of $24.1 billion, exceeding debt by $9.9 billion. The company also made payments of $600 mln to its worldwide funded pension plans. This included $500 mln in discretionary payments to U.S. funded plans in line with the company's previously disclosed long-term strategy to de-risk its funded pension plans. The company continues to expect Ford South America to be profitable for the full year, but at a level substantially lower than 2011, consistent with prior guidance. Co reiterates its Oct. 25 guidance that, as a result of the deteriorating environment in Europe, as well as elements of its transformation plan, the company now expects Ford Europe's pre-tax loss for full year 2012 to exceed $1.5 billion. Ford Credit: The decrease in Ford Credit's pre-tax results was in line with expectations and was more than explained by fewer lease terminations, which resulted in fewer vehicles sold at a gain, lower financing margin and the non-recurrence of credit loss reserve reductions. Ford Credit now expects full year pre-tax profit of about $1.6 bln, and total distributions to its parent of about $600 million. Ford Credit continues to project managed receivables at year end to be in the range of $85 billion to $90 billion.
Production results and Q4 outlook: In the third quarter, total company production was about 1.4 mln units, 24,000 units higher than a year ago. This is 45,000 units below the company's prior guidance, reflecting primarily parts supply issues on several products. the company expects total company fourth quarter production to be about 1.5 million units, up 112,000 from a year ago, reflecting higher volume in all regions except Europe. Lower production volumes in Europe reflect lower industry as well as Ford's strategic decision to reduce dealer stocks to generate ongoing benefits for Ford, its customers and dealers. Planned fourth quarter production is more than 100,000 units higher than third quarter, reflecting Ford's seasonal operating pattern, as well as added capacity in North America and Asia Pacific Africa.
Production results and Q4 outlook: In the third quarter, total company production was about 1.4 mln units, 24,000 units higher than a year ago. This is 45,000 units below the company's prior guidance, reflecting primarily parts supply issues on several products. the company expects total company fourth quarter production to be about 1.5 million units, up 112,000 from a year ago, reflecting higher volume in all regions except Europe. Lower production volumes in Europe reflect lower industry as well as Ford's strategic decision to reduce dealer stocks to generate ongoing benefits for Ford, its customers and dealers. Planned fourth quarter production is more than 100,000 units higher than third quarter, reflecting Ford's seasonal operating pattern, as well as added capacity in North America and Asia Pacific Africa.
