Ford Motor Company on Tuesday today reported net income of 57 cents per share, or $1.2 billion, for the second quarter of 2004, compared with net income of 22 cents per share, or $417 million, in the second quarter of 2003.
Go deeper with GlobalData
Second-quarter earnings from continuing operations, excluding special items, were 61 cents per share, or $1.3 billion, beating the First Call consensus estimate of 50 cents per share.
Total sales and revenue in the second quarter rose to $42.8 billion from $40.6 billion in the year-ago period.
“I am pleased that we continue to make solid progress in this extremely competitive environment,” said Ford chairman and CEO Bill Ford. “Although the remainder of the year includes many challenges, we’ll generate lots of excitement with the introduction of new products such as the Ford Five Hundred, Freestyle and Escape Hybrid, the Land Rover Discovery/LR3 and the new Ford Focus in Europe.”
Other product launches scheduled for the rest of the year include the F-Series Super Duty truck, the low-volume GT supercar and retro-look Mustang coupe, as well as the volume market Mercury Mariner and Montego, all aimed primarily at the US and Canadian markets.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataOn a pre-tax basis, Ford’s worldwide automotive sector reported a loss of $57 million during the second quarter of 2004. Excluding special items of $140 million, worldwide automotive profit in the second quarter was $83 million, an $80 million improvement over the same period a year ago.
The special items included a $120 million charge in North America related to the restructuring and revaluation of the car maker’s investment in Ballard Power Systems, a fuel cell manufacturer, and $20 million for the completion of restructuring at Ford Europe.
Worldwide automotive sales for the second quarter rose to $36.7 billion from $34.1 billion in the same period last year. Worldwide vehicle-unit sales in the quarter were 1,748,000, up from 1,718,000 a year ago.
Automotive cash, marketable securities, loaned securities and short-term Voluntary Employee Beneficiary Association (VEBA) assets on June 30, 2004 were $26.8 billion, up from $26.5 billion at the end of the first quarter.
For the second quarter, the Americas reported a pre-tax profit of $477 million, excluding special items, up $101 million from the same period a year ago.
Ford’s North America automotive pre-tax profit for the second quarter was $455 million, excluding special items, up $10 million from a year ago. Sales were $20.5 billion, down from $20.7 billion in the same period a year ago.
South America operations reported a second-quarter pre-tax profit of $22 million, a $91 million improvement from the 2003 second quarter. Sales improved to $665 million from $435 million in the same period a year ago.
The 2004 second-quarter combined pre-tax loss for Ford Europe and PAG was $151 million, excluding special items, compared with a loss of $359 million for the year-ago period, a year-over-year improvement of $208 million.
Ford Europe’s second-quarter pre-tax profit was $211 million, excluding special items, compared with a pre-tax loss of $525 million during the 2003 period. Sales in the second quarter were $6.7 billion, compared with $5.2 billion during the second quarter of 2003.
Premier Automotive Group reported a pre-tax loss of $362 million for the second quarter, compared with a pre-tax profit of $166 million for the second quarter of 2003. Second-quarter sales for PAG were $6.9 billion, compared with $6.4 billion a year ago.
The 2004 second-quarter combined pre-tax profit for Ford Asia-Pacific, Africa, Mazda and Associated Operations was $55 million, compared with $17 million for the year-ago period, a year-over-year improvement of $38 million.
For the second quarter of 2004, Ford Asia-Pacific and Africa reported a combined pre-tax loss of $5 million, an improvement of $23 million from the same period a year ago. Sales rose to $1.9 billion, compared with $1.4 billion during the second quarter of 2003.
During the second quarter of 2004, Ford’s share of Mazda and Associated Operations was a combined pre-tax profit of $60 million, compared with $45 million a year ago.
Ford Motor Credit Company reported record net income of $897 million in the second quarter of 2004, up $496 million from $401 million a year earlier. On a pre-tax basis from continuing operations, Ford Credit earned $1.4 billion in the second quarter, compared with $661 million in the previous year.
Hertz reported a pre-tax profit of $144 million in the second quarter compared with a $57 million profit during the same period a year ago.
Outlook
“When you look at our second-quarter results you see continued strong performance in financial services and significant progress at Ford Europe, where actions we took last year have begun to pay off,” said Ford’s chief financial officer Don Leclair. “Looking forward, we remain dedicated to achieving our financial milestones in this competitive marketplace and continuing to improve our balance sheet.”
For the third quarter of 2004, Ford expects to earn in a range of breakeven to 5 cents per share from continuing operations, excluding special items.
The company is increasing its full-year earnings guidance by 15 cents per share to a range of $1.80 to $1.90 per share from continuing operations, excluding special items. The increase primarily reflects the strong performance of the company’s financial services sector.
Special items, which are presently estimated to reduce full-year earnings by 8 cents per share, are expected to consist primarily of the restructuring and revaluation of the Ballard investment and completed European restructuring.
