Ford Motor Co. (NYSE: F): Q2 Earnings Preview 2011

Ford Motor Co. (NTSE: F) is scheduled to release its second-quarter earnings before the opening bell on Tuesday, July 26, 2011. Analysts, on average, expect the company to report earnings of 60 cents per share on revenue of $31.59 billion. In the year ago period, the company reported earnings of 68 cents per share on revenue of $28.80 billion.

Ford Motor Company designs, develops, manufactures, and services cars and trucks worldwide. Ford and its subsidiaries also engage in other businesses, including financing vehicles. The company has posted $9.28 billion in profits in the past 2 years after incurring losses of $30.1 billion from 2006 to 2008. 

In the preceding first quarter, the Dearborn, Michigan-based company's net income was $2.6 billion, or 61 cents a share, compared to $2.1 billion, or 50 cents a share, in the year-earlier quarter. On an adjusted basis, the company earned 62 cents a share in the latest quarter. Total company revenues rose to $33.1 billion from prior-year quarter's $28.1 billion. Analysts, on average, expected the company to report earnings of 50 cents per share on revenue of $30.64 billion.

At its last earnings call in April, Ford said that quarterly results later in 2011 may not be as strong as its first quarter. The company cited lower expected profit at its Ford Credit unit, increasing commodity costs and investments in long-term growth plans. Ford forecast a smaller year-over-year production increase in the second quarter than the 14 percent gain through March. North American output in the second quarter may rise 8.7 percent to 710,000 units, and production may fall in all other regions from the year-earlier period, Ford said.

Industrywide U.S. vehicle sales slowed in the quarter because of costlier cars and shortages after the March 11 tsunami in Japan. Chief Executive Officer Alan Mulally is raising prices for Fiesta subcompacts and Explorer sport-utility vehicles to offset some of the $4 billion in higher costs for commodities, advertising and new-product development.

On the bright side, the company has benefited from the strength of its new products, consistently better performance at Ford Credit as well as a recovery in the North American automotive market. Unlike GM and Chrysler, Ford did not go through bankruptcy and receive billions of dollars of government loans to enable it to survive and restructure. The company went for a total overhaul of the company's product lines and technology during difficult times.

Recently, Ford said that it expects global sales to expand by 50% to 8 million vehicles by 2015 given the potential growth in Asia, mainly China and India; and rising demand for small cars. The automaker anticipates small cars to account for 55% of the total sales by 2020 compared with 48% presently. One third of the small car sales is expected to come from Asia. Ford has embarked upon an aggressive expansion plan in China that includes plans to triple its lineup in China by introducing 15 models, including the Kuga small sport utility vehicle by 2015. In order to develop these new models, Ford will build new plants raising its capital spending to about $6 billion annually by mid-decade from $3.9 billion in 2010 and the projected $5.5 billion in 2011. In order to support the increasing sales, Ford also aims to triple its dealership to 340 in India and double in China (adding 100 dealerships this year) to 680 by 2016. The company plans to expand its production capacity in China to 1.1 million vehicles by 2012. It will spend $1.6 billion to build 4 plants in the country by 2012. Ford has been gearing to catch up with its rivals in the world largest auto market. Currently, the automaker holds 2.4% of the passenger-vehicle market in the country. Ford’s sales in China grew 40% in 2010 driven by higher sales of Focus compact and Fiesta subcompacts. 

Ford is also rigorously working to reduce debt. By 2015, Ford also plans to cut its debt level to $10 billion from $16.6 billion at the end of the first quarter. The company expects the move to help regain investment-grade credit rating. The company is likely get back the investment grade rating in 2012, or by the end of 2011. An investment grade rating would allow Ford to sell bonds to a large number of institutional investors forbidden to invest in junk bonds, which would likely lower Ford's cost of borrowing.

Full Disclosure: None.

Ford Motor Co. (NYSE: F): Q1 Earnings Preview 2011

Ford Motor Co. (NTSE: F) is scheduled to release its first-quarter earnings before the opening bell on Tuesday, January 26, 2011. Analysts, on average, expect the company to report earnings of 50 cents per share on revenue of $30.64 billion. In the year ago period, the company reported earnings of 46 cents per share on revenue of $28.10 billion.

Ford Motor Company designs, develops, manufactures, and services cars and trucks worldwide. Ford and its subsidiaries also engage in other businesses, including financing vehicles.

In the preceding fourth quarter, the Dearborn, Michigan-based company's net income was $190 million, or 5 cents a share, from $886 million, or 25 cents a share, in the prior-year quarter. On an adjusted basis, the company earned 30 cents a share in the latest quarter. Revenue declined to $32.5 billion from $34.8 billion. Analysts, on average, expected the company to report earnings of 48 cents per share on revenue of $30.57 billion.

For the first quarter, Ford expects total production volumes to reach 1.447 million units, comprising 650 thousand units in North America, 116 thousand units in South America, 442 thousand units in Europe, ans 239 thousand units in Asia Pacific Africa. At its last earnings call in January, Ford said that it plans to build on its performance in 2010 with continued improvement in 2011 total company pre-tax operating profit and Automotive operating-related cash flow. Ford expects each of its Automotive operations to be profitable in 2011. In addition, the Automotive operating margin is expected to be equal to or improved from 2010. The company expects its full year U.S. total market share and its share of the U.S. retail market as well as European market share to be equal to or improved from 2010. For full-year 2011, Ford Credit expects to be solidly profitable but at a lower level than in 2010. The company expects to pay distributions to its parent of about $2 billion in 2011.

The company has benefited from the strength of its new products, consistently better performance at Ford Credit as well as a recovery in the North American automotive market. Unlike GM and Chrysler, Ford did not go through bankruptcy and receive billions of dollars of government loans to enable it to survive and restructure. The company went for a total overhaul of the company's product lines and technology during difficult times.

In February, Ford Motor Co. said that it will boost its production for deliveries to its U.S. deals by 13% in the first quarter of 2011.

The company surpassed General Motors Co. (NYSE: GM) in sales in March for the second time in 13 years. Early in April, Ford said that total U.S. sales in March jumped 19.2% to 212,777 vehicles from 178,546 in the year-ago period. Sales during the first quarter rose 15.9% to 496,720 units.

Recently, Ford said that its vehicle sales in China increased 19% in the first quarter from a year earlier to 140,566 units, and its sales in March rose 20% from a year earlier to 53,440 units amid sustained demand for passenger and commercial vehicles. The company plans to introduce 15 new vehicles in China by 2015, stepping up its efforts to expand in the world's biggest auto market. The 15 new vehicles are also part of Ford's plan to introduce 50 new products to Asia Pacific and Africa in the next four years.

Ford is also rigorously working to reduce debt. Ford reduced its outstanding automotive debt by more than $1.9 billion during the fourth quarter, and by a total of $14.5 billion in 2010. The company reduced its debt load by another $3 billion by redeeming all of its outstanding 6.5% cumulative convertible trust preferred securities on March 15. The conversion, which will result in a first-quarter charge of up to $60 million, will cut annualized debt costs by about $190 million

The company is likely get back the investment grade rating in 2012, or by the end of 2011. Moody’s Investors Service rates Ford Ba2, the second level below investment grade, and Standard & Poor’s rates it BB-, three steps below. Ford lost its investment-grade ratings in 2005 as rising gasoline prices and falling truck sales led to $30 billion in losses from 2006 through 2008. An investment grade rating would allow Ford to sell bonds to a large number of institutional investors forbidden to invest in junk bonds, which would likely lower Ford's cost of borrowing.

Among other developments, the car maker recently warned that its financial results could be hurt by supply chain disruptions caused by last month's quake in Japan. "Should the supply of a key material or component from Japan be disrupted and an alternate supply not be available, we could have to reduce or temporarily cease production of vehicles, which could adversely affect our and Ford Motor Credit Company's financial condition and results of operations," the company said

The company's stock currently trades at a forward P/E (fye Dec 31, 2012) of 7.83 and PEG ratio (5 yr expected) of 0.48. In terms of stock performance, Ford shares have gained nearly 6 percent over the past year.

Full Disclosure: None.

Ford Motor Co. (NYSE: F): Q4 Earnings Preview 2010

Ford Motor Co. (NTSE: F) is scheduled to release its fourth-quarter earnings before the opening bell on Friday, January 28, 2011. Analysts, on average, expect the company to report earnings of 48 cents per share on revenue of $30.57 billion. In the year ago period, the company reported earnings of 43 cents cents per share on revenue of $35.40 billion.

Ford Motor Company designs, develops, manufactures, and services cars and trucks worldwide. Ford and its subsidiaries also engage in other businesses, including financing vehicles.

In the preceding third quarter, the Dearborn, Michigan-based company's net income was $1.7 billion, or 43 cents a share, compared to $997 million, or 29 cents a share, in the prior-year quarter. On an adjusted basis, the company earned 48 cents a share in the latest quarter. Revenue dropped slightly to $29 billion from $30.3 billion. Analysts, on average, expected net income of 36 cents a share and revenue of $27.9 billion. 

At its last earnings call in October, Ford said that it expects fourth quarter 2010 production to be up 27,000 units compared with year-ago levels. Fourth quarter production will be up 89,000 units compared to third quarter 2010 production, reflecting the normal seasonal increase following summer shutdowns, as well as new product launches and projected industry growth as economic conditions improve.

The company has benefited from the strength of its new products, consistently better performance at Ford Credit as well as a recovery in the North American automotive market. Unlike GM and Chrysler, Ford did not go through bankruptcy and receive billions of dollars of government loans to enable it to survive and restructure. The company went for a total overhaul of the company's product lines and technology during difficult times.

Light vehicle sales in the U.S. during December rose 12.7% to a seasonally adjusted annual rate of 12.55 million units, reflecting a continuous recovery in the industry. Ford reported a 6.7% increase in December U.S. sales and laid claim to the biggest full-year improvement for any full-line manufacturer in the industry with its 19.4% surge in 2010. Ford said it sold 190,976 cars and trucks last month, up from 179,017 a year earlier to bring its annual total to 1.94 million vehicles. Ford pointed out that it gained market share for the second year in a row, which is the first time it has had back-to-back gains since 1993.

Recently, Ford said that its vehicle sales in China climbed 40% in 2010 from a year earlier, as mainland China consumers were particular keen on its Focus model and its new Fiesta, according to reports. The auto maker reportedly said its China vehicle sales rose to a record 582,467 last year, helped by 56,880 sales in December, a 52% surge from the same month a year earlier.

Ford is also rigorously working to reduce debt. Ford reduced its automotive operations’ debt by $12.8 billion last year, lowering annual interest costs by almost $1 billion. Ford still has $22.8 billion in debt. The company has said that the auto operations would end 2010 with more cash than debt after a profitable year and a $1 billion dividend from the credit unit.

The company is likely get back the investment grade rating in 2012, or by the end of 2011. Moody’s Investors Service rates Ford Ba2, the second level below investment grade, and Standard & Poor’s rates it B+, four steps below. Ford lost its investment-grade ratings in 2005 as rising gasoline prices and falling truck sales led to $30 billion in losses from 2006 through 2008. Moody’s has said it won’t move Ford to investment grade before the results of this year contract talks with the United Auto Workers. The automaker’s labor agreement expires in September. An investment grade rating usually means a company can borrow money at lower interest rates.

In terms of stock performance, Ford shares have gained nearly 70 percent since the beginning of the year.

Full Disclosure: None.

Ford Motor Co. (NYSE: F): Q1 Earnings Preview 2010

Ford Motor Co. (NYSE: F) is scheduled to release its first-quarter financial results before the opening bell on Tuesday, April 27, 2010. Analysts, on average, currently expect the company to report earnings of 31 cents a share on revenue of $30.49 billion. In the year ago quarter, the company reported a loss of 75 cents per share on revenue of $21.37 billion.

Ford Motor Company designs, develops, manufactures, and services cars and trucks worldwide. It operates in two sectors, Automotive and Financial Services. The Automotive sector sells vehicles under Ford, Mercury, Lincoln, and Volvo brand names. It also holds a one-third stake in Mazda.

In the preceding fourth-quarter, the Dearborn, Michigan-based company reported that it swung to a profit of $868 million or $0.25 per share, compared to loss of $5.98 billion or $2.51 per share in the year-ago period. On an after-tax basis, excluding special items, Ford posted an operating profit for the quarter of $1.57 billion or $0.43 per share, compared with a loss of $3.33 billion or $1.40 per share in the previous-year quarter. Revenue jumped 22% to $35.4 billion from $29.0 billion in the prior-year quarter and $30.9 billion in the previous quarter. Analysts, on average, expected the carmaker to report earnings of $0.26 a share on revenue of $32.60 billion.

For fiscal year 2010, the company expects to be profitable on a pre-tax basis excluding special items, with positive Automotive operating-related cash flow. Based on its recent performance, Ford expects total company and North American Automotive operations to be "solidly profitable" for 2011 on a pre-tax basis excluding special items, with positive automotive operating-related cash flow.

Ford has benefited from a relatively fresh lineup along with goodwill garnered from avoiding bankruptcy and declining to take money in a federal bailout, unlike Chrysler and GM. The automaker plans to introduce a higher number of new products in 2010. The carmaker has agressively slashed cost, addressed underperforming assetsimproved liquidity position and strengthened its balance sheet. Ford Motor Co will focus strongly in 2010 on reducing heavy long-term debt and narrowing a cash-flow edge held by its bailed-out U.S. rivals. Ford has also got a boost from recall troubles at rival Japanese auto-giant Toyota Motor.

The automakers's turnaround plan has yielded fantastic results. It recorded sharp jump in US auto sales in the first three months of 2010. Ford Motor Co. reported that its March sales increased 39.8% to 183,783 units from 131,465 units in the year-ago month. Its February U.S. sales rose 43.1% while January U.S. sales rose 24.6% from a year ago. The company's market share rose 2.7 percentage points from January through March, Ford's sharpest increase in a three-month period since the fourth quarter of 1977. Through March, Ford's share of U.S. sales was 17.4%, putting it behind only General Motors' 18.7%.

Additionally, the automaker recently reported a record 84% rise in unit sales in China for the first quarter, including joint ventures, attributed to robust sales in its passenger car and commercial vehicles segment. Separately, the company said its March unit sales in India rose 203%, on strong demand for its newly launched Figo.

Ford is swiftly launching more fuel efficient and smaller engines--with direct injection and turbocharging--under the EcoBoost label, fitting them first to the 2010 Lincoln MKS sedan and MKT crossover and to the Ford Flex crossover and Taurus SHO performance sedan. Its revamped 2011 Edge crossover will offer a 2.0-liter EcoBoost four, and it has already shown its subcompact 2011 Fiesta and compact 2012 Focus--both offered as four-door sedans and five-door hatchbacks--to great acclaim.

Ford shares have gained 38 percent since the beginning of the year. Shares of the company closed at $14.21 on Friday.

Full Disclosure: None.

Ford Motor Co. (NYSE: F): Well Positioned For Next Boom

The rally in Ford (NYSE: F) shares shows no signs of slowing down. Shares of the company have climbed over 20% over the past one month and are up about 535% year-over-year.

The auto maker is now North America’s largest auto company, after mis-steps by rivals GM and Toyota helped put Ford on top. Unlike GM and Chrysler, Ford did not go through bankruptcy and receive billions of dollars of government loans to enable it to survive and restructure. The company went for a total overhaul of the company's product lines and technology during difficult times. It appears that the company's effort appears to be paying off- Ford's U.S. sales rose 43 percent against this month last year, while GM's rose just 12 percent and Toyota's fell 9 percent, due in part to several models having been pulled off sale until they could be fixed to resolve accelerator design problems that led to a massive recall. That was the first time since 1998 that Ford outsold General Motors. Its U.S. market share for February is estimated at 17 percent, up 3 percentage points from a year ago. Ford plans to build 595,000 vehicles in North America in the second quarter, up 32 percent from a year earlier. Moreover, the automaker reported its first annual profit in four years amid improving sales.

Ford has $34 billion of debt, and a credit rating that is less than stellar. Any improvement in that credit rating, or a reduction in debt, would likely mean millions added to the bottom line. With increased sales and a potential leadership position in the auto industry, Ford would find it easier to borrow money at lower rates and retire some of the worst debt the company has. Ford can use it’s increasing cash flow to cut down its debt load and increase net earnings. By grabbing more of the global market share of vehicles, Ford will have healthy cash flows which could be used to mightily improve the company’s finance and increase the net earnings per share. Executives at Ford have been working on shoring up the company’s finances for years now. They have been restructuring debt aggressively and will continue to do so. Having great sales figures just makes their job that much easier. Net earnings per share is going to be the most important metric to rate Ford by going forward, but increased sales should be a reliable precursor of what will happen to the net.

Ford is swiftly launching more fuel efficient and smaller engines--with direct injection and turbocharging--under the EcoBoost label, fitting them first to the 2010 Lincoln MKS sedan and MKT crossover and to the Ford Flex crossover and Taurus SHO performance sedan. Its revamped 2011 Edge crossover will offer a 2.0-liter EcoBoost four, and it has already shown its subcompact 2011 Fiesta and compact 2012 Focus--both offered as four-door sedans and five-door hatchbacks--to great acclaim.

Many analysts expect Ford to reinstate its dividend again, which once again would make ‘F’ an institutional grade investment.

The company's stock currently trades at a forward P/E (fye 31-Dec-11) of 9.61 and PEG Ratio (5 yr expected) of 0.92.

Full Disclosure: None.

Ford Motor Co. (NYSE: F): Q4 Earnings Preview 2009

Ford Motor Co. (NYSE: F) is scheduled to release its fourth-quarter financial results before the opening bell on Thursday, January 28, 2009. Analysts, on average, currently expect the company to report earnings of 26 cents a share on revenue of $32.60 billion. In the year ago quarter, the company reported a loss of $1.37 per share on revenue of $29.20 billion.

Ford Motor Company designs, develops, manufactures, and services cars and trucks worldwide. It operates in two sectors, Automotive and Financial Services. The Automotive sector sells vehicles under Ford, Mercury, Lincoln, and Volvo brand names. It also holds a one-third stake in Mazda.

Early in November, the Dearborn, Michigan-based company said it swung to a profit of $997 million, or 29 cents a share, from a loss of $161 million, or 7 cents a share, in the year-ago quarter. Revenue fell to $30.9 billion from $31.7 billion. Analysts, on average, expected the carmaker to report a loss of 13 cents a share on revenue of $29.1 billion. Ford ended the quarter with $23.8 billion of gross cash, up $2.8 billion from the end of the second quarter.

Based on its recent performance, Ford expects total company and North American Automotive operations to be "solidly profitable" for 2011 on a pre-tax basis excluding special items, with positive automotive operating-related cash flow.

The automakers's turnaround plan has yielded fantastic outcome. The automaker’s U.S. deliveries jumped 33 percent in December, more than twice the industrywide, to cap a year in which its market share rose to 16.1 percent from 15 percent in 2008. The gain marked the first year-on-year increase in the company's market share since 1995. While November U.S. sales were virtually flat, sales increased 2.6% in October.

Ford has benefited from a relatively fresh lineup along with goodwill garnered from avoiding bankruptcy and declining to take money in a federal bailout, unlike Chrysler and GM. The automaker plans to introduce a higher number of new products in 2010. The carmaker has agressively slashed cost, addressed underperforming assetsimproved liquidity position and strengthened its balance sheet. Ford Motor Co will focus strongly in 2010 on reducing heavy long-term debt and narrowing a cash-flow edge held by its bailed-out U.S. rivals. In November, it completed its previously announced plan to extend the maturity of $7.2 billion in loans to November 30, 2013 from December 15, 2011. Last month, Ford Motor Co. said that it expects to close the deal to send its money-losing its iconic Swedish unit Volvo Cars to Chinese automaker Zhejiang Geely Holding in the second quarter of 2010.

In the recently concluded Detroit auto show, Ford Motor Co. bagged both the North American Car and Truck of the Year honors, marking only the third time a single car maker swept both awards since the accolade was first handed out 17 years ago. The Fusion Hybrid beat out the Buick LaCrosse and the Volkswagen Golf/GTI while the Transit Connect edged the Subaru Outback and the Chevrolet Equinox.

The company's stock currently trades at a forward P/E (fye 31-Dec-10) of 20.72. In terms of stock performance, Ford shares have gained 54 percent over the past year.

Full Disclosure: None.