Ford Mtr Co del · NYSE:F
Ford Mtr Co del — Ford Motor Company — Q2 2010 Earnings Presentation
51 slides from Ford Mtr Co del's earnings presentation, Jul 23, 2010
Slide 1: 2010 Second Quarter Earnings Review
2010 SECOND QUARTER EARNINGS REVIEW JULY 23, 2010 (PRELIMINARY RESULTS)
Slide 2: Business Overview
BUSINESS OVERVIEW Alan Mulally President and Chief Executive Officer SLIDE 1
Slide 3: Agenda
TOTAL COMPANY AGENDA • Business Overview of Financial Results and Highlights • Details of Financial Results • Our Plan -- and Outlook SLIDE 2
Slide 4: 2010 Second Quarter Financial Results
TOTAL COMPANY 2010 SECOND QUARTER FINANCIAL RESULTS* Second Quarter First Half B / (W) B / (W) 2010 2009** 2010 2009** Wholesales (000)*** 1,418 224 2,671 491 - Memo: Excl. Volvo in 2009 (000) 303 639 Revenue (Bils.)**** $ 31.3 $ 4.5 $ 59.4 $ 8.2 - Memo: Excl. Volvo in 2009 (Bils.) 7.4 13.7 Operatin
Slide 5: Achieving Our Plan -- Key Business Highlights
TOTAL COMPANY ACHIEVING OUR PLAN -- KEY 2010 SECOND QUARTER BUSINESS HIGHLIGHTS • Repaid $7 billion of Automotive debt, including $3.8 billion to the UAW Retiree Medical Benefits Trust and $3 billion of the revolving credit facility • Ranked No. 1 in a UBS Investment Research quarterly survey of OEM
Slide 6: Achieving Our Plan -- Key Product Highlights
TOTAL COMPANY ACHIEVING OUR PLAN -- KEY 2010 SECOND QUARTER PRODUCT HIGHLIGHTS • Ford brand ranked highest among all non-luxury brands in the 2010 J.D. Power & Associates Initial Quality Study • Received seven Top Safety Picks in the Insurance Institute for Highway Safety's awards for the 2010 model
Slide 7: Achieving Our Plan -- Key Sales Highlights
TOTAL COMPANY ACHIEVING OUR PLAN -- KEY 2010 SECOND QUARTER SALES HIGHLIGHTS • Reported a 21% sales increase and gained a half-point of market share in the U.S. on strong retail market performance of our products, including the F-Series, Taurus, and Transit Connect • Posted a 27% sales increase in A
Slide 8: Financial Results
FINANCIAL RESULTS Lewis Booth Chief Financial Officer SLIDE 7
Slide 9: 2010 Second Quarter Financial Results
TOTAL COMPANY 2010 SECOND QUARTER FINANCIAL RESULTS Second Quarter First Half B / (W) B / (W) 2010 2009* 2010 2009* (Mils.) (Mils.) (Mils.) (Mils.) Income / (Loss) Pre-Tax Results (Excl. Special Items) $ 2,942 $ 3,496 $ 4,952 $ 7,531 Special Items** (95) (2,890) 30 (3,128) Pre-Tax Results (Incl. Spe
Slide 10: 2010 Second Quarter Special Items
TOTAL COMPANY 2010 SECOND QUARTER SPECIAL ITEMS Second First Quarter Half (Mils.) (Mils.) Personnel and Dealer-Related Items Personnel-reduction programs $ (31) $ (117) Mercury discontinuation / U.S. dealer reductions (232) (247) Job security benefits / other 34 72 Total Personnel and Dealer-Related
Slide 11: Pre-Tax Results by Sector
TOTAL COMPANY 2010 SECOND QUARTER PRE-TAX RESULTS BY SECTOR* Pre-Tax Results (Mils.) $2,942 $2,067 $875 Total Automotive Financial Memo: Services B / (W) 2Q 2009** $3,496 $3,216 $280 B / (W) 1Q 2010 932 872 60 * Excludes special items, see Slide 9 and Appendix for reconciliation to GAAP ** Adjusted
Slide 12: Pre-Tax Results by Segment
AUTOMOTIVE SECTOR 2010 SECOND QUARTER PRE-TAX RESULTS BY SEGMENT* Pre-Tax Results (Mils.) $2,067 $1,898 Net Interest $(459) Fair Market Value Adj. (92) $285 $322 $113 - $(551) Total North South Europe Asia Other Volvo America America Pacific Automotive Africa Memo: B / (W) 2Q 2009** $3,216 $2,797 $1
Slide 13: Pre-Tax Results Compared with 2009
AUTOMOTIVE SECTOR 2010 SECOND QUARTER PRE-TAX RESULTS COMPARED WITH 2009* Pre-Tax Results (Bils.) Pricing $0.9 $3.2 $2.1 Incentives 0.2 Structural $(0.4) $1.5 Commodities (0.2) $1.1 Other Material 0.6 Warranty / Other 0.2 $0.5 $0.2 $0.2 $0.1 Industry $ 0.6 $(0.4) Share (0.2) Stocks 0.9 $(1.1) Other
Slide 14: Second Quarter Key Metrics -- Ford North America
AUTOMOTIVE SECTOR -- FORD NORTH AMERICA SECOND QUARTER KEY METRICS -- 2010 vs. 2009 Wholesales (000) Revenue (Bils.) Pre-Tax Results (Mils.) 659 $1,898 $16.9 458 $10.7 $(899) 2009* 2010 2009* 2010 2009* 2010 Memo: U.S. Ind. SAAR (Mils.) 9.8 11.5 U.S. Market Share 16.4% 16.9% U.S. Dealer Inventories
Slide 15: Pre-Tax Results Compared with 2009 -- Ford North America
AUTOMOTIVE SECTOR -- FORD NORTH AMERICA 2010 SECOND QUARTER PRE-TAX RESULTS COMPARED WITH 2009 Pre-Tax Results (Bils.) U.S. Industry $0.6 U.S. Share 0.2 U.S. Stocks 0.5 $2.8 $1.9 Other 0.1 $1.4 Structural $(0.3) $1.0 Commodities (0.2) Other Material 0.4 $0.4 $0.1 $(0.1) Pricing $0.5 Incentives 0.5 $
Slide 16: U.S. Market Share
AUTOMOTIVE SECTOR -- FORD NORTH AMERICA U.S. MARKET SHARE* Total Share of Total Industry Retail Share of Retail Industry 16.9% 16.4% 16.5% 16.1% 14.6% 14.1% 14.1% 13.7% 13.1% 12.8% Second Third Fourth First Second Second Third Fourth First Second Quarter Quarter Quarter Quarter Quarter Quarter Quart
Slide 17: Second Quarter Key Metrics -- Ford South America
AUTOMOTIVE SECTOR -- FORD SOUTH AMERICA SECOND QUARTER KEY METRICS -- 2010 vs. 2009 Wholesales (000) Revenue (Bils.) Pre-Tax Results (Mils.) 130 $2.6 $285 111 $1.8 $86 2009 2010 2009 2010 2009 2010 Memo: Industry SAAR (Mils.)* 4.2 4.4 Market Share* 10.4% 9.5% Dealer Inventories (000) - Second Quarte
Slide 18: Second Quarter Key Metrics -- Ford Europe
AUTOMOTIVE SECTOR -- FORD EUROPE SECOND QUARTER KEY METRICS -- 2010 vs. 2009 Wholesales (000)* Revenue (Bils.)* Pre-Tax Results (Mils.) 420 $322 400 $7.5 $7.0 $57 2009 2010 2009** 2010 2009** 2010 Memo: Industry SAAR (Mils.)*** 16.1 14.9 Market Share*** 9.0% 7.9% Dealer Inventories (000) - Second Qu
Slide 19: Pre-Tax Results Compared with 2009 -- Ford Europe
AUTOMOTIVE SECTOR -- FORD EUROPE 2010 SECOND QUARTER PRE-TAX RESULTS COMPARED WITH 2009 Pre-Tax Results (Bils.) Material $0.2 Warranty / Other 0.1 $0.2 $0.3 $0.3 Industry $(0.1) Share (0.3) Pricing $ 0.2 Stocks 0.3 Incentives (0.3) $0.1 Other 0.1 $0 $(0.1) 2009* 2010 Volume / Net Cost Mix Pricing Ch
Slide 20: Second Quarter Key Metrics -- Ford Asia Pacific Africa
AUTOMOTIVE SECTOR -- FORD ASIA PACIFIC AFRICA SECOND QUARTER KEY METRICS -- 2010 vs. 2009 Wholesales (000)* Revenue (Bils.)* Pre-Tax Results (Mils.) $113 209 $1.8 146 $1.2 $(27) 2009 2010 2009** 2010 2009** 2010 Memo: Industry SAAR (Mils.)*** 22.9 28.1 Market Share*** 2.4% 2.4% Dealer Inventories (0
Slide 21: 2010 Second Quarter Cash
AUTOMOTIVE SECTOR 2010 SECOND QUARTER CASH* Second First Quarter Half (Bils.) (Bils.) Gross Cash June 30, 2010 $ 21.9 $ 21.9 March 31, 2010 / December 31, 2009** 25.3 24.9 Change in Gross Cash $ (3.4) $ (3.0) Operating-Related Cash Flow Automotive Pre-Tax Profits*** $ 2.1 $ 3.3 Capital Spending (1.0
Slide 22: Automotive Debt Reduction Summary
AUTOMOTIVE SECTOR 2010 SECOND QUARTER AUTOMOTIVE DEBT REDUCTION SUMMARY Debt Reduction Actions Balance Other Automotive Ford Credit Balance Mar. 31, Debt Cash Cash June 30, 2010 Changes Utilized Utilized 2010 (Bils.) (Bils.) (Bils.) (Bils.) (Bils.) Revolving Line of Credit $ 7.5 $ - $ (3.0) $ - $ 4.
Slide 23: Automotive Financial Resources
AUTOMOTIVE SECTOR 2010 SECOND QUARTER AUTOMOTIVE FINANCIAL RESOURCES March 31, June 30, 2010 2010 (Bils.) (Bils.) Automotive Gross Cash* $ 25.3 $ 21.9 Less: Long-Term Debt $ 29.3 $ 26.2 Debt Payable Within One Year 5.0 1.1 Total Debt $ 34.3 $ 27.3 Net Cash / (Debt) $ (9.0) $ (5.4) Memo: Liquidity**
Slide 24: Financial Services Pre-Tax Results by Segment
FINANCIAL SERVICES SECTOR 2010 SECOND QUARTER PRE-TAX RESULTS BY SEGMENT Pre-Tax Results (Mils.) $875 $888 $(13) Total Ford Credit Other Memo: B / (W) 2Q 2009 $280 $242 $38 B / (W) 1Q 2010 60 60 - SLIDE 23
Slide 25: Ford Credit Pre-Tax Results Compared with 2009
FINANCIAL SERVICES SECTOR 2010 SECOND QUARTER FORD CREDIT PRE-TAX RESULTS COMPARED WITH 2009 Pre-Tax Results (Bils.) Reserves $0.4 $0.3 $0.9 Charge-offs 0.2 $0.6 $0.6 $0.1 $0 $(0.1) $(0.3) 2009 2010 Volume Financing Credit Lease Other Margin Loss Residual Managed Receivables (Bils.)* $100 $87 * See
Slide 26: Ford Credit Liquidity and Funding
FINANCIAL SERVICES SECTOR 2010 SECOND QUARTER FORD CREDIT LIQUIDITY AND FUNDING June 30, 2010 (Bils.) • We are on track to complete our Full Year funding plan. Second Quarter highlights Committed $51.4 Capacity & include: Committed $5.2** Cash**** – $6 billion of funding in the securitization Capaci
Slide 27: 2010 Production Volumes
AUTOMOTIVE SECTOR 2010 PRODUCTION VOLUMES* Second Quarter Third Quarter Actual Forecast O / (U) O / (U) 2010 2009 2010 2009 (000) (000) (000) (000) North America 653 202 570 80 South America 131 21 130 15 Europe 451 53 356 (29) Asia Pacific Africa 208 68 213 60 Total 1,443 344 1,269 126 (174) Produc
Slide 28: Our Plan
OUR PLAN Alan Mulally President and Chief Executive Officer SLIDE 27
Slide 29: Business Environment
TOTAL COMPANY BUSINESS ENVIRONMENT • The global economy expanded through the Second Quarter, with modest growth expected to continue • Global industry volume for Full Year 2010 is projected to exceed the 2009 level of 65 million units by 5 - 10% • Asian market recoveries are moderating, but economic
Slide 30: 2010 Planning Assumptions and Operational Metrics
TOTAL COMPANY 2010 PLANNING ASSUMPTIONS AND OPERATIONAL METRICS Full Year First Full Year Plan Half Outlook Planning Assumptions Industry Volume (SAAR)* -- U.S. (Mils.) 11.5 to 12.5 11.4 11.5 to 12.0 Industry Volume (SAAR)* -- Europe (Mils.)** 13.5 to 14.5 15.4 14.5 to 15.0 Operational Metrics Compa
Slide 31: Our Plan
TOTAL COMPANY OUR PLAN -- • Continue implementation of our global • Aggressively restructure to operate profitably at the current demand and changing model mix • Accelerate development of new products our customers want and value • Finance our Plan and improve our balance sheet • Work together effec
Slide 32: Safe Harbor
SAFE HARBOR Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptions by our management and involve a number of risks, uncertainti
Slide 33: Appendix
APPENDIX
Slide 34: Calculation of Earnings Per Share
TOTAL COMPANY CALCULATION OF EARNINGS PER SHARE Second Quarter 2010 First Half 2010 After-Tax After-Tax Net Income Oper. Results Net Income Oper. Results Attributable Excl. Special Attributable Excl. Special to Ford* Items** to Ford* Items** (Mils.) (Mils.) (Mils.) (Mils.) Numerator After-Tax Result
Slide 35: Income / (Loss) from Continuing Operations Reconciliation to GAAP
TOTAL COMPANY INCOME / (LOSS) FROM CONTINUING OPERATIONS RECONCILIATION TO GAAP Second Quarter First Half 2009* 2010 2009* 2010 (Mils.) (Mils.) (Mils.) (Mils.) North America $ (899) $ 1,898 $ (1,564) $ 3,151 South America 86 285 149 488 Europe 57 322 (528) 429 Asia Pacific Africa (27) 113 (124) 136
Slide 36: Revenue Reconciliation to GAAP
TOTAL COMPANY REVENUE RECONCILIATION TO GAAP Second Quarter First Half 2009* 2010 2009* 2010 (Mils.) (Mils.) (Mils.) (Mils.) North America $ 10,744 $ 16,908 $ 20,762 $ 31,040 South America 1,840 2,620 3,244 4,634 Europe 6,955 7,549 12,724 15,196 Asia Pacific Africa 1,208 1,802 2,373 3,380 Subtotal (
Slide 37: Wholesales
TOTAL COMPANY WHOLESALES* Second Quarter First Half 2009** 2010 2009** 2010 (000) (000) (000) (000) North America 458 659 808 1,206 South America 111 130 204 231 Europe*** 400 420 743 836 Asia Pacific Africa**** 146 209 277 398 Subtotal (Excl. Volvo) 1,115 1,418 2,032 2,671 Volvo 79 - 148 - Total Au
Slide 38: Employment Data by Business Unit
TOTAL COMPANY EMPLOYMENT DATA BY BUSINESS UNIT Dec. 31, Mar. 31, June 30, 2009* 2010 2010 (000) (000) (000) North America 71 70 72 South America 15 15 15 Europe 49 48 48 Asia Pacific Africa 15 16 17 Subtotal 150 149 152 Volvo 19 19 19 Total Automotive 169 168 171 Financial Services 8 8 7 Total Compa
Slide 39: Market Results
AUTOMOTIVE SECTOR MARKET RESULTS* Second Quarter First Half B / (W) B / (W) 2010 2009 2010 2009 U.S.** Industry SAAR (Mils.) 11.5 1.7 11.4 1.6 Market Share 16.9% 0.5 Pts. 16.7% 1.5 Pts. South America*** Industry SAAR (Mils.) 4.4 0.2 4.7 0.6 Market Share 9.5% (0.9) Pts. 10.1% (0.5) Pts. Europe**** In
Slide 40: Global Industry (SAAR)
AUTOMOTIVE SECTOR GLOBAL INDUSTRY (SAAR)* 2009 2010 First Second Third Fourth Full First Second Quarter Quarter Quarter Quarter Year Quarter Quarter (Mils.) (Mils.) (Mils.) (Mils.) (Mils.) (Mils.) (Mils.) United States 9.8 9.8 11.8 11.0 10.6 11.3 11.5 South America** 4.1 4.2 4.3 4.3 4.2 4.9 4.4 Euro
Slide 41: Costs and Expenses
AUTOMOTIVE SECTOR COSTS AND EXPENSES Second Quarter First Half B / (W) B / (W) 2010 2009* 2010 2009* (Mils.) (Mils.) (Mils.) (Mils.) Total Costs and Expenses $ 30,252 $ (4,850) $ 57,611 $ (8,787) Select Costs Items: Depreciation and Amortization - Depreciation $ 511 $ (67) $ 1,003 $ (61) - Amortizat
Slide 42: Net Interest Reconciliation to GAAP
AUTOMOTIVE SECTOR NET INTEREST RECONCILIATION TO GAAP Second Quarter First Half B / (W) B / (W) 2010 2009* 2010 2009* (Mils.) (Mils.) (Mils.) (Mils.) Interest Expense $ (518) $ (160) $ (1,060) $ (232) Interest Income 60 9 107 (6) Subtotal $ (458) $ (151) $ (953) $ (238) Adjusted for items included /
Slide 43: Gross Cash Reconciliation to GAAP
AUTOMOTIVE SECTOR GROSS CASH RECONCILIATION TO GAAP June 30, Dec. 31, Mar. 31, June 30, 2009* 2009* 2010 2010 (Bils.) (Bils.) (Bils.) (Bils.) Cash and Cash Equivalents $ 11.2 $ 9.7 $ 12.8 $ 8.7 Marketable Securities** 9.7 15.2 12.5 13.2 Total Cash and Marketable Securities $ 20.9 $ 24.9 $ 25.3 $ 21.
Slide 44: Operating-Related Cash Flows Reconciliation to GAAP
AUTOMOTIVE SECTOR OPERATING-RELATED CASH FLOWS RECONCILIATION TO GAAP Second Quarter First Half B / (W) B / (W) 2010 2009* 2010 2009* (Bils.) (Bils.) (Bils.) (Bils.) Cash Flows from Operating Activities of Continuing Operations** $ 2.9 $ 3.3 $ 2.9 $ 6.2 Items Included in Operating-Related Cash Flows
Slide 45: Automotive Debt
AUTOMOTIVE SECTOR AUTOMOTIVE DEBT Dec. 31 Mar. 31, June 30, 2009* 2010 2010 (Bils.) (Bils.) (Bils.) U.S. Debt Unsecured Notes $ 5.5 $ 5.5 $ 5.2 Unsecured Convertible Notes 2.6 2.6 2.6 Total Unsecured Notes $ 8.1 $ 8.1 $ 7.8 Unsecured Portion of VEBA Debt 4.0 4.1 0.5 Trust Preferred 3.1 3.2 3.0 Total
Slide 46: Ford Credit Results and Metrics -- 2010 Second Quarter
FINANCIAL SERVICES SECTOR FORD CREDIT RESULTS AND METRICS -- 2010 SECOND QUARTER Pre-Tax Profit (Mils.) Key Metrics Second Quarter $242 $888 2009 2010 On-Balance Sheet Receivables (Bils.) $ 99 $ 85 Charge-Offs (Mils.) $ 285 $ 86 $646 Loss-to-Receivables Ratio - Worldwide 1.09% 0.39% - U.S. Retail an
Slide 47: Ford Credit Key Metric Definitions
FINANCIAL SERVICES SECTOR FORD CREDIT KEY METRIC DEFINITIONS In evaluating Ford Credit’s financial performance, Ford Credit management uses financial measures based on GAAP, as well as financial measures that include adjustments from GAAP; these measures are defined below. Information about the impa
Slide 48: Ford Credit Ratio Definitions
FINANCIAL SERVICES SECTOR FORD CREDIT RATIO DEFINITIONS In addition to evaluating Ford Credit’s financial performance on a GAAP financial statement basis, Ford Credit management also uses other criteria, some of which were previously disclosed in this presentation and are defined below: Charge-offs
Slide 49: Ford Credit Net Finance Receivables and Operating Leases
FINANCIAL SERVICES SECTOR FORD CREDIT NET FINANCE RECEIVABLES AND OPERATING LEASES June 30, Dec. 31, June 30, 2009 2009 2010 (Bils.) (Bils.) (Bils.) Receivables -- On-Balance Sheet Retail installment $ 61.2 $ 56.3 $ 51.5 Wholesale 19.7 22.4 21.8 Other finance receivables 2.7 2.4 2.6 Unearned interes
Slide 50: Ford Credit Reconciliations of Managed Leverage to Financial Statement Leverage
FINANCIAL SERVICES SECTOR FORD CREDIT RECONCILIATIONS OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE June 30, June 30, 2009 2010 (Bils.) (Bils.) Leverage Calculation Total Debt* $ 104.9 $ 88.5 Securitized Off-Balance Sheet Receivables Outstanding 0.1 - Retained Interest in Securitized Off-Balan
Slide 51: Second Quarter Key Metrics -- Volvo
AUTOMOTIVE SECTOR -- VOLVO SECOND QUARTER KEY METRICS -- 2010 vs. 2009 Wholesales (000) Revenue (Bils.) Pre-Tax Results (Mils.)* 99 $3.7 79 $53 $2.9 $(237) 2009 2010 2009 2010 2009 2010 Memo: Second Quarter: Market Share - U.S. 0.6% 0.5% - Europe** 1.2 1.5 Dealer Inventories (000) -- U.S. & Europe -