Ford to Close 2016 Strong; Declares Regular and Supplemental Dividends; Highlights Progress in Auto and Mobility Expansion
January 10 2017 - 4:15PM
Business Wire
- Company on track to deliver about $10.2
billion in total company adjusted pre-tax profit in 2016; adjusted
effective tax rate now expected to be in the low 30 percent
range
- Declares first quarter regular dividend
of $0.15 per share and a $200 million supplemental cash dividend –
or $0.05 per share – for a combined $0.20 per share
- Reconfirms total company adjusted
pre-tax profit to be solid in 2017, lower than 2016; core business
remains strong, while investments in emerging opportunities
increase
- Continues to forecast improved
profitability in 2018, led by gains in the core business
Ford Motor Company (NYSE: F) is on track for another strong year
in 2016 and continues to expect about $10.2 billion in total
company adjusted pre-tax profit. The company now expects its
adjusted effective tax rate to be in the low 30 percent range. Ford
will give further details this evening when it presents at the
Deutsche Bank Global Auto Industry Conference. The slide deck of
that presentation can be found here.
“As we close 2016, Ford continues to be a solid investment with
attractive upside on emerging opportunities,” said Mark Fields,
Ford president and CEO. “We are pleased to, once again, reward our
shareholders with a regular and supplemental dividend, as we
continue delivering profitable growth for all.”
As a result of the company’s performance in 2016, Ford’s Board
of Directors declared a first quarter dividend of $0.15 per share
and a $200 million supplemental cash dividend that is equal to
$0.05 per share. This provides a combined total of $0.20 per share
of dividends on the company’s outstanding Class B and common
stock.
The first quarter regular dividend maintains the same level as
the dividends paid in 2016. The first quarter regular and
supplemental dividends are payable on March 1, 2017 to shareholders
of record at the close of business on Jan. 20, 2017. Subject to the
approval of the Board of Directors, the company will make
distributions totaling about $2.8 billion in 2017. By year-end,
cumulative distributions to shareholders will total $15.4 billion
since the company’s regular dividend was restored in 2012.
Consistent with the guidance outlined at Ford’s Investor Day in
September, the company expects continued strong performance in
2017, with total company adjusted pre-tax profit somewhat lower
compared to 2016 due to increased investments in electrification,
autonomy and mobility. The company also anticipates cost
efficiencies of greater than $3 billion in 2017 alone and improved
profitability in 2018 – led by gains in the core business.
At tonight’s Deutsche Bank Global Auto Industry Conference,
Fields will provide an update on Ford’s strategic priorities to
fortify its profit pillars, transform underperforming parts of its
business and grow emerging opportunities as it expands to an auto
and mobility company.
Ford is focused on building on its clear global leadership in
trucks, vans, commercial vehicles and performance vehicles, while
growing global strength in utility vehicles. Ford also is
transforming underperforming parts of its core business, including
luxury, small vehicles and select emerging markets – and is already
seeing benefits.
In electrification, last week, Ford detailed seven of the 13 new
global electrified vehicles it plans to introduce in the next five
years. This announcement comes on the heels of the recently
unveiled next-generation Fusion Hybrid autonomous development
vehicle, which demonstrates the advancement of Ford’s in-house
hardware and software engineering efforts and brings the company
one step closer to delivering a high-volume, fully autonomous
vehicle for ride sharing in 2021.
Ford also continues to innovate in the area of connectivity,
which supports both the core business as well as growth in emerging
opportunities. Last week at CES, the company announced several new
initiatives, including partnering with Toyota to establish the
SmartDeviceLink Consortium and bringing Amazon’s Alexa into Ford
vehicles.
Ford’s presentation at the Deutsche Bank Global Auto Industry
Conference will begin at approximately 6:30 p.m. EST today. To
access the presentation materials and a listen-only audio webcast,
visit shareholder.ford.com.
Note: Total company adjusted pre-tax profit is a non-GAAP
financial measure because it excludes special items. Ford does not
provide guidance on net income, the comparable GAAP financial
measure. Full-year net income in 2016 will include potentially
significant special items, including pension and OPEB remeasurement
losses, which presently are difficult to quantify with reasonable
certainty.
About Ford Motor Company
Ford Motor Company is a global automotive and mobility company
based in Dearborn, Michigan. With about 203,000 employees and 62
plants worldwide, the company’s core business includes designing,
manufacturing, marketing and servicing a full line of Ford cars,
trucks and SUVs, as well as Lincoln luxury vehicles. To expand its
business model, Ford is aggressively pursuing emerging
opportunities with investments in electrification, autonomy and
mobility. Ford provides financial services through Ford Motor
Credit Company. For more information regarding Ford and its
products and services, please visit www.corporate.ford.com.
Risk Factors
Statements included or incorporated by reference 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, uncertainties, and
other factors that could cause actual results to differ materially
from those stated, including, without limitation:
- Decline in industry sales volume,
particularly in the United States, Europe, or China, due to
financial crisis, recession, geopolitical events, or other
factors;
- Decline in Ford’s market share or
failure to achieve growth;
- Lower-than-anticipated market
acceptance of Ford’s new or existing products or services;
- Market shift away from sales of larger,
more profitable vehicles beyond Ford’s current planning assumption,
particularly in the United States;
- An increase in or continued volatility
of fuel prices, or reduced availability of fuel;
- Continued or increased price
competition resulting from industry excess capacity, currency
fluctuations, or other factors;
- Fluctuations in foreign currency
exchange rates, commodity prices, and interest rates;
- Adverse effects resulting from
economic, geopolitical, or other events;
- Economic distress of suppliers that may
require Ford to provide substantial financial support or take other
measures to ensure supplies of components or materials and could
increase costs, affect liquidity, or cause production constraints
or disruptions;
- Work stoppages at Ford or supplier
facilities or other limitations on production (whether as a result
of labor disputes, natural or man-made disasters, tight credit
markets or other financial distress, production constraints or
difficulties, or other factors);
- Single-source supply of components or
materials;
- Labor or other constraints on Ford’s
ability to maintain competitive cost structure;
- Substantial pension and postretirement
health care and life insurance liabilities impairing liquidity or
financial condition;
- Worse-than-assumed economic and
demographic experience for postretirement benefit plans
(e.g., discount rates or investment returns);
- Restriction on use of tax attributes
from tax law “ownership change;”
- The discovery of defects in vehicles
resulting in delays in new model launches, recall campaigns, or
increased warranty costs;
- Increased safety, emissions, fuel
economy, or other regulations resulting in higher costs, cash
expenditures, and/or sales restrictions;
- Unusual or significant litigation,
governmental investigations, or adverse publicity arising out of
alleged defects in products, perceived environmental impacts, or
otherwise;
- A change in requirements under
long-term supply arrangements committing Ford to purchase minimum
or fixed quantities of certain parts, or to pay a minimum amount to
the seller (“take-or-pay” contracts);
- Adverse effects on results from a
decrease in or cessation or clawback of government incentives
related to investments;
- Inherent limitations of internal
controls impacting financial statements and safeguarding of
assets;
- Cybersecurity risks to operational
systems, security systems, or infrastructure owned by Ford, Ford
Credit, or a third-party vendor or supplier;
- Failure of financial institutions to
fulfill commitments under committed credit and liquidity
facilities;
- Inability of Ford Credit to access
debt, securitization, or derivative markets around the world at
competitive rates or in sufficient amounts, due to credit rating
downgrades, market volatility, market disruption, regulatory
requirements, or other factors;
- Higher-than-expected credit losses,
lower-than-anticipated residual values, or higher-than-expected
return volumes for leased vehicles;
- Increased competition from banks,
financial institutions, or other third parties seeking to increase
their share of financing Ford vehicles; and
- New or increased credit regulations,
consumer or data protection regulations, or other regulations
resulting in higher costs and/or additional financing
restrictions.
We cannot be certain that any expectation, forecast, or
assumption made in preparing forward-looking statements will prove
accurate, or that any projection will be realized. It is to be
expected that there may be differences between projected and actual
results. Our forward-looking statements speak only as of the date
of their initial issuance, and we do not undertake any obligation
to update or revise publicly any forward-looking statement, whether
as a result of new information, future events, or otherwise. For
additional discussion, see “Item 1A. Risk Factors” in our 2015 Form
10-K Report, as updated by our subsequent Quarterly Reports on Form
10-Q and Current Reports on Form 8-K.
For news releases, related materials and
high-resolution photos and video, visit www.media.ford.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170110006322/en/
Ford Motor CompanyMedia:Brad
Carroll313.390.5565bcarro37@ford.comEquity
Investment Community:Dawn
Dombroski313.845.2868fordir@ford.comFixed
Income Investment Community:Karen
Rocoff313.621.0965fixedinc@ford.comShareholder Inquiries:1.800.555.5259
or313.845.8540stockinf@ford.com
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