fbpx

Ford Prepares for Global Redesign

Autosphere » Fleet » Ford Prepares for Global Redesign

Ford will reshape overseas operations and strengthen North America by reinventing the future of transportation and mobility.

This change will ensue using a company strategy centering on allocating capital to high-growth and high-margin product segments and smart vehicles and services; with a closer focus on electrified propulsion, autonomous vehicles, mobility services, operational fitness, and high-performance culture.

“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 of Global Markets, says Ford’s global product wave, will primarily focus on trucks, commercial vehicles, and SUVs.

“We are now beginning to see the results of our capital shift away from tradition sedans to trucks and SUVs with new utility nameplates globally, including Territory in China, Bronco, and a slightly smaller, yet-to-be names off-roader in North America,” said Farley. “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 great potential.”

Reshaping Global Regional Businesses

Bob Shanks, Chief Financial Officer says the company operating results have been positive despite a number of external factors, including commodity costs, a business decline 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 a 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.”

An additional external factor affecting the company’s progress is the adjusted effective tax rate for 2019 which will be in the low 20s–is a full 10 percentage points higher than in 2018.

Below are Ford’s primary goals within all global markets:

North America:

  • 75% of its lineup will be refreshed, expanding the range and mix of SUVs and strengthening the company’s truck franchise.
  • Increase Expedition and Navigation posting share.

Europe:

  • More vehicle lineup for commercial and passenger vehicles and imports.
  • Improve profitability and returns by fortifying the competitive position.

China:

  • Introduce more than 10 new Ford and Lincoln products this year and more than 30 by 2021.
  • Improve cost structure and relationships with partners and dealer network.

South America:

  • Maintain optimized footprint.
  • Reduce structural costs and improve efficiency.

2018 Preliminary Results & 2019 First Quarter Dividend

For announced that the preliminary 2018 earnings-per-share (EPS) were $0.92 and adjusted EPS of $1.30. The company ended the year with cash of $23.1 billion and liquidity of $34.2 billion; these numbers include the loss related exclusively to lower asset returns due to declining financial markets at the end of the year.

Ford’s Board of Directors declared a first quarter regular dividend of $0.15 per share and is payable on March 1 to shareholders of record at the close of business on January 31.

Preliminary Company Earnings Per Share Reconciliation to Adjusted Earnings per Share:
Preliminary Company Earnings Per Share Reconciliation to Adjusted Earnings per Share

Ford’s Annual Report on Form 10-K, which include the company’s audited financial results will be filed in February.

To view the presentation materials and listen-only audio webcast, click here.

Ford also makes it abundantly clear to expect differences between projected and actual results, as there are many factors that can affect the hopeful outcome.

Categories : Fleet

Popular Posts

Calendar

march

10janAll Day31marASE Winter Testing Registration Now Available

april

12aprAll Day10mayMastering The Art of Diagnosis Level Two

22apr(apr 22)8:30 am24(apr 24)5:30 pmNAFA Institute and Expo 2024

23aprAll Day24AIA Canada National Conference 2024