Ford’s Q4, FY Results in Europe, China Sharply Improve;  Strategic Actions in 2019 Position Company for Long-Term Success

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  • Full-year operating cash flow up, adjusted free cash flow flat
  • Automotive EBIT for 2019 declined; benefits of Global Redesign and Fitness initiatives evident in lower Automotive structural costs and other underlying operating improvements
  • Product mix and net pricing strong in most regions, led by North America, with a sharper focus on franchise strengths, especially trucks, SUVs and commercial vehicles
  • Extensive new-product introductions, featuring electric commercial and passenger vehicles, and investments in smart-vehicle capabilities continuing through and beyond 2020
  • For full-year 2020, Ford expects adjusted free cash flow of $2.4 billion to $3.4 billion, and adjusted EBIT of $5.6 billion to $6.6 billion

DEARBORN, Mich., Feb. 4, 2020 – Ford Motor Company today announced its fourth-quarter  and full-year 2019 financial results, closing a year of strategic milestones in the company’s  ongoing, large-scale transformation.

Company Key Metrics Summary

Ford’s Q4, FY Results in Europe, China Sharply Improve;  Strategic Actions in 2019 Position Company for Long-Term Success - Brand Spur

Fourth-quarter adjusted free cash flow was $498 million, down 67 percent. The company  reported a Q4 net loss of $1.7 billion, or negative 42 cents per share, which includes a  previously disclosed $2.2 billion pension and OPEB remeasurement loss . Adjusted earnings  before interest and taxes (EBIT) were $485 million, down 67 percent, with improved results in  China and Europe more than offset by a decline in North America. Revenue was $39.7 billion,  down 5 percent.

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Ford’s Automotive EBIT for the quarter was $215 million, 81 percent lower. Gains in net pricing  and product mix, particularly in North America, were more than offset by lower launch-related  volumes; higher costs for new products; unfavorable currency exchange; and UAW contract-  related costs.

For full-year 2019, Ford’s adjusted free cash flow was $2.8 billion, flat compared to 2018.  Revenue was $155.9 billion, down 3 percent. Adjusted EBIT was $6.4 billion and adjusted EPS  was $1.19.

Ford Credit had an exceptional year, posting its best results in nine years, with $3 billion in  earnings before taxes.

“We made great strategic progress this past year with a fundamental redesign of Ford that is  setting us up to compete and win in this emerging era of Smart Vehicles for a Smart World –  with great products, services and long-term value,” said Jim Hackett, Ford president and chief  executive officer.

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”Financially, the company’s 2019 performance was short of our original expectations, mostly  because our operational execution – which we usually do very well – wasn’t nearly good  enough. We recognize, take accountability for and have made changes because of this.”

Among 2019 strategic highlights were the November reveal of the Mustang Ma ch-E, an exciting,  zero-emissions battery-electric vehicle that will be digitally connected, enabling constant  improvement through real-time over-the-air updates. Additionally, Ford entered strategic  agreements and partnerships around the world – with VW, Rivian and Mahindra — to  complement and accelerate its own capabilities in autonomous and electric vehicles and in  emerging and emerged markets.

Operationally, Global Redesign actions during 2019 included decisive moves to both reinforce  strengths and address under-performing parts of the businesses. As examples:

  • Europe generated $21 million in EBIT in Q4 – versus a loss of $199 million a year ago – and improved to nearly break-even for the full year. The business refocused its resources on three product segments: commercial vehicles, selected passenger  vehicles and iconic nameplates, such as Mustang. At the same time, the business  became more efficient, announcing plans to close or sell six manufacturing plants and  eliminate 12,000 positions across the region.
  • Ford’s fourth-quarter operating loss in China was 61 percent smaller than in the same year-ago period, thanks to lower structural costs. This was the fourth straight quarter of year-over-year improvement in China.
  • In South America, Ford exited production of heavy trucks and discontinued unprofitable sedan models, closing a plant in São Bernardo. The company’s regional workforce today is more than 40 percent smaller than three years ago.
  • At the same time, Ford carried out key parts of perhaps the most ambitious vehicle renewal in  its history. By the end of 2019, 40 percent of Ford’s global product portfolio was new since the  end of 2017, a rate expected to reach 90 percent by 2022.

    Among products introduced in 2019 were new versions of the Ford Explorer, Escape and  Super Duty, and Lincoln Aviator and Corsair, in North America; Ford Puma and two-tonne  Transit in Europe; and first-ever battery-electric vehicle in China, a version of the Ford Territory.  Production of all of these vehicles will fully ramp up during 2020.

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    In addition to Mustang Mach-E, refreshed or all-new vehicle launches planned for 2020 – in  North America, representing 40 percent of Ford’s current volumes – include:

    • F-150, featuring a first-ever hybrid-electric version
    • A small off-road utility vehicle
    • The first of 30 market-specific Ford and Lincoln vehicles in China – 10 of which will be electric – over the next three years, and
    • Electrified versions of the Lincoln Corsair and Ford Escape/Kuga.

    “Enhancing customer experience and improving operating rigor are persistent priorities for us,”  said Tim Stone, Ford’s chief financial officer. “We have abundant opportunities in both areas.”

    Regional Highlights  Q4

    Ford’s Q4, FY Results in Europe, China Sharply Improve;  Strategic Actions in 2019 Position Company for Long-Term Success - Brand Spur

Outlook

According to Ford, it is too early to estimate implications of the coronavirus outbreak on its  business. Excluding any possible effects from the issue, for full-year 2020, the company  anticipates:

  • Adjusted free cash flow of $2.4 billion to $3.4 billion
  • Adjusted EBIT of $5.6 billion to $6.6 billion, which assumes at least nominal growth in the Automotive business, offset by lower EBT from Ford Credit and modestly higher investment in Mobility
  • An adjusted effective tax rate in the mid-to-high teens, producing an adjusted EPS of 94 cents to $1.20 per share
  • Capital expenditures of $6.8 billion to $7.3 billion – as much as $800 million below the level of 2019, reflecting benefits from the company’s fitness initiatives
  • Funded pension contributions of $600 million to $800 million, and
  • Regular quarterly dividends of 15 cents per share, subject to board approval each quarter.

In the first quarter, Ford expects adjusted EBIT to be down more than $1.1 billion from Q1 2019  as a result of the continuation of higher warranty costs seen during the second half of 2019,  lower vehicle volumes, lower results from Ford Credit, and higher investment in Mobility. The  company expects its Q1 adjusted effective tax rate to be at the high end of its full-year guidance  range.

Ford’s guidance assumes no material change in the current economic environment, including  commodities, foreign exchange and tariffs. Actual results could differ materially from guidance  due to risks, uncertainties and other factors, including those detailed in the company’s  Cautionary Note on Forward Looking Statements.

The company will report first-quarter 2020 financial results on April 28. Ford said it will  announce the date of each subsequent earnings release in conjunction with results for current  quarter.

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Ford’s Q4, FY Results in Europe, China Sharply Improve;  Strategic Actions in 2019 Position Company for Long-Term Success - Brand SpurFord’s Q4, FY Results in Europe, China Sharply Improve;  Strategic Actions in 2019 Position Company for Long-Term Success - Brand Spur

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Ford’s Q4, FY Results in Europe, China Sharply Improve;  Strategic Actions in 2019 Position Company for Long-Term Success - Brand SpurFord’s Q4, FY Results in Europe, China Sharply Improve;  Strategic Actions in 2019 Position Company for Long-Term Success - Brand Spur

Latest News

Strongest first quarter ever: Preliminary results of Deutsche Post DHL Group above market expectations

  • All divisions significantly increased EBIT in first quarter 2021; Group EBIT tripled to around EUR 1.9 billion
  • Free cash flow development continued positive trajectory and improved by more than EUR 1.4 billion to around EUR 1.0 billion
  • CEO Frank Appel: "The start into the new financial year was more dynamic than ever"


SINGAPORE - Media OutReach - 12 April 2021 - Deutsche Post DHL Group has today released preliminary results for the first quarter of 2021 and has raised the outlook for the current financial year. Preliminary operating profit (EBIT) for the first three months improved to around EUR 1.9 billion (Q1 2020: EUR 592 million). The positive development of the group's businesses seen in the fourth quarter 2020 has continued well through the first quarter 2021. In the first three months of the year the B2C shipment volumes remained high in all networks while the recovery in the B2B business continued.

"The start to the new financial year was more dynamic than ever. It proves that we have successfully geared our business to the right growth drivers. One year into the pandemic we experienced in the first quarter 2021 a sustained momentum in e-commerce and a significant stabilization in global trade with increasing air- and sea-freight volumes. Consequently all divisions reported a significant jump in earnings above market expectations. Global trade continues to recover and vaccine distribution is in full swing which makes me very optimistic for the rest of 2021 and beyond," said Frank Appel, CEO of Deutsche Post DHL Group.

All divisions optimally positioned for continuing e-commerce boom and growth in global trade

Express: The division reached an EBIT of around EUR 955 million in the first quarter 2021 compared to EUR 393 million in Q1 2020.

Global Forwarding, Freight: EBIT in Global Forwarding, Freight stood at around EUR 215 million in Q1 2021, clearly above previous year's Q1 of EUR 73 million.

Supply Chain: EBIT at Supply Chain came in at around EUR 165 million in the first quarter 2021 compared to EUR 105 million in Q1 2020.

eCommerce Solutions: eCommerce Solutions recorded a first quarter 2021 EBIT of around EUR 115 million, clearly above last year's Q1 result of EUR 6 million.

Post & Parcel Germany: EBIT in Post & Parcel Germany in Q1 2021 was around EUR 555 million (Q1 2020: EUR 334 million).

Earnings momentum mirrored in positive cash flow development and improved outlook


The continued positive business development is underpinned by a strong cash flow development; free cash flow amounted to around EUR 1.0 billion in the first quarter 2021. In Q1 2020 this figure was still negative at EUR -409 million.

In light of the strong earnings momentum, guidance for 2021 is adjusted as follows:

Group EBIT for 2021 is now expected to be significantly above EUR 5.6 billion (previous forecast: more than EUR 5.6 billion). Equally, the result for the DHL divisions is now seen significantly above EUR 4.5 billion (previous forecast: more than EUR 4.5 billion). EBIT for the Post & Parcel Germany division is no longer expected at around EUR 1.6 billion but above EUR 1.6 billion. The expectation of a Group Functions EBIT of around EUR -0.4 billion remains unchanged. Full year 2021 Free Cash Flow is now expected to be significantly above EUR 2.3 billion (previous forecast: around EUR 2.3 billion).

The Group will introduce a revised detailed guidance with the comprehensive disclosure for Q1 2021 which will be published as planned on May 5, 2021.

Deutsche Post DHL Group

Deutsche Post DHL Group is the world's leading logistic company. The Group connects people and markets and is an enabler of global trade. It aspires to be the first choice for customers, employees and investors worldwide. To this end, Deutsche Post DHL Group is focusing on growth in its profitable core logistics businesses and accelerating the digital transformation in all business divisions. The Group contributes to the world through sustainable business practices, corporate citizenship and environmental activities. By the year 2050, Deutsche Post DHL Group aims to achieve zero emissions logistics.


Deutsche Post DHL Group is home to two strong brands: DHL offers a comprehensive range of parcel and international express service, freight transport, and supply chain management services, as well as e-commerce logistics solutions. Deutsche Post is Europe's leading postal and parcel service provider. Deutsche Post DHL Group employs approximately 570,000 people in over 220 countries and territories worldwide. The Group generated revenues of more than 66 billion Euros in 2020.


The logistics company for the world.

Ford’s Q4, FY Results in Europe, China Sharply Improve;  Strategic Actions in 2019 Position Company for Long-Term Success - Brand Spur
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- Advertisement -Ford’s Q4, FY Results in Europe, China Sharply Improve;  Strategic Actions in 2019 Position Company for Long-Term Success - Brand SpurFord’s Q4, FY Results in Europe, China Sharply Improve;  Strategic Actions in 2019 Position Company for Long-Term Success - Brand Spur