Ford Unit to Break Out Results -- WSJ
June 09 2017 - 3:02AM
Dow Jones News
By Christina Rogers
Ford Motor Co.'s smart mobility subsidiary will start breaking
out separate financial results to help offer investors better
clarity on the revenue and earnings potential for the company's
alternative transportation businesses.
Raj Rao, the mobility unit's chief executive, said Thursday the
intent is for Ford Smart Mobility LLC to have its own profit and
loss statements, much like Ford's other divisions, although he
didn't give exact timing on when that would begin.
"Yes, we'll have our own balance sheet," Mr. Rao said, speaking
at an event in Michigan. "We'll see that happen sooner than we
expect."
The subsidiary, started in March 2016, oversees the auto maker's
efforts to diversify into ride-sharing, autonomous-car fleets and
other service-based business that executives believe have the
potential to boost margins far beyond what Ford earns from its
traditional automotive operations. The unit oversees Ford's
recently acquired Chariot van-shuttle service and its partnership
with Motivate, a bike-sharing firm in San Francisco.
Analysts have pressed Ford executives for more financial details
on the future technologies it is investing in and better clarity on
how they will deliver the 20% margins forecast by former chief
executive Mark Fields. Mr. Fields was ousted last month in part
because he wasn't able to provide a cohesive strategy on how the
future bets would tie together.
Ford's new CEO Jim Hackett had recently led the mobility unit as
chairman until his appointment to the top job, underscoring the
importance of such future technologies to the auto maker's growth
potential.
Write to Christina Rogers at christina.rogers@wsj.com
(END) Dow Jones Newswires
June 09, 2017 02:47 ET (06:47 GMT)
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