Ford Says Q2 2021 Adjusted EBIT Will Exceed Its Expectations
June 17 2021 - 8:00AM
Business Wire
- CEO Jim Farley will tell Deutsche Bank auto conference today
that Ford anticipates adjusted EBIT to be significantly better than
in second-quarter 2020
- Customer reservations strong for four new vehicles: full-size
Bronco SUV, battery-electric F-150 Lightning pickup, Maverick
compact truck and all-electric E-Transit commercial van
Ford said adjusted earnings before interest and taxes for the
second quarter of 2021, which ends in two weeks, will surpass its
expectations and be significantly better than a year ago.
The company provided the insight ahead of President and CEO Jim
Farley’s participation this afternoon in Deutsche Bank’s Global
Auto Industry Conference.
Farley will tell conference attendees that Ford is seeing
improvement in its automotive business since providing full-year
operating guidance on April 28, despite continuing uncertainty
about supplies of semiconductors. The improvement in automotive is
being driven by lower-than-anticipated costs and favorable market
factors. Additionally, higher vehicle auction values are
benefitting Ford Credit.
Net income for the second quarter of 2021 is expected to be
substantially lower than a year ago, when results included a $3.5
billion gain on Ford’s investment in Argo AI.
Ford plans to announce second-quarter results and provide its
outlook for the second half of the year on July 28.
At the Deutsche Bank event, Farley will provide an update on
progress against the Ford+ plan for growth and value creation.
Ford+ is based on developing “always-on” customer relationships
through strategic investments and leadership in electric vehicles,
commercial vehicles and services, connected services, autonomous
vehicles and mobility.
“We’re providing customers with great value today and there’s
much more on the way, because we’re executing Ford+ from strength –
with iconic nameplates and leading positions with retail and
commercial customers around the world, and the best financing
company in our industry in Ford Credit,” said Farley.
The appeal of Ford and its influential products is evident in
customer-reservation numbers for new, strategically important
vehicles. Farley will report that reservations have swelled to
190,000 for the reimagined full-size Bronco SUV, which is now in
production – 125,000 of which have already been converted to
orders; 100,000 for the battery-electric F-150 Lightning pickup;
36,000 for the all-new Maverick compact pickup, just a week after
it was introduced to the world; and 20,000 for the all-electric
E-Transit commercial van.
Farley’s Deutsche Bank “fireside chat” remarks are scheduled to
begin at 3:00 p.m. EDT. Conference attendees are encouraged to
register in advance for the webcast. Information is also available
at shareholder.ford.com.
About Ford Motor Company
Ford Motor Company (NYSE: F) is a global company based in
Dearborn, Michigan, that is committed to helping build a better
world, where every person is free to move and pursue their dreams.
The company’s Ford+ plan for growth and value creation combines
existing strengths, new capabilities and always-on relationships
with customers to enrich experiences for and deepen the loyalty of
those customers. Ford designs, manufactures, markets and services a
full line of connected, increasingly electrified passenger and
commercial vehicles: Ford trucks, utility vehicles, vans and cars,
and Lincoln luxury vehicles. The company is pursuing leadership
positions in electrification, connected vehicle services and
mobility solutions, including self-driving technology, and provides
financial services through Ford Motor Credit Company. Ford employs
about 186,000 people worldwide. More information about the company,
its products and Ford Motor Credit Company is available at
corporate.ford.com.
Cautionary Note on Forward-Looking
Statements
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:
- Ford and Ford Credit’s financial condition and results of
operations have been and may continue to be adversely affected by
public health issues, including epidemics or pandemics such as
COVID-19;
- Ford is highly dependent on its suppliers to deliver components
in accordance with Ford’s production schedule, and a shortage of
key components, such as semiconductors, can disrupt Ford’s
production of vehicles;
- Ford’s long-term competitiveness depends on the successful
execution of its Plan;
- Ford’s vehicles could be affected by defects that result in
delays in new model launches, recall campaigns, or increased
warranty costs;
- Ford may not realize the anticipated benefits of existing or
pending strategic alliances, joint ventures, acquisitions,
divestitures, or new business strategies;
- Operational systems, security systems, and vehicles could be
affected by cyber incidents and other disruptions;
- Ford’s production, as well as Ford’s suppliers’ production,
could be disrupted by labor issues, natural or man-made disasters,
financial distress, production difficulties, or other factors;
- Ford’s ability to maintain a competitive cost structure could
be affected by labor or other constraints;
- Ford’s ability to attract and retain talented, diverse, and
highly skilled employees is critical to its success and
competitiveness;
- Ford’s new and existing products and mobility services are
subject to market acceptance and face significant competition from
existing and new entrants in the automotive and mobility
industries;
- Ford’s results are dependent on sales of larger, more
profitable vehicles, particularly in the United States;
- With a global footprint, Ford’s results could be adversely
affected by economic, geopolitical, protectionist trade policies,
or other events, including tariffs;
- Industry sales volume in any of Ford’s key markets can be
volatile and could decline if there is a financial crisis,
recession, or significant geopolitical event;
- Ford may face increased price competition or a reduction in
demand for its products resulting from industry excess capacity,
currency fluctuations, competitive actions, or other factors;
- Fluctuations in commodity prices, foreign currency exchange
rates, interest rates, and market value of Ford or Ford Credit’s
investments can have a significant effect on results;
- Ford and Ford Credit’s access to debt, securitization, or
derivative markets around the world at competitive rates or in
sufficient amounts could be affected by credit rating downgrades,
market volatility, market disruption, regulatory requirements, or
other factors;
- Ford’s receipt of government incentives could be subject to
reduction, termination, or clawback;
- Ford Credit could experience higher-than-expected credit
losses, lower-than-anticipated residual values, or
higher-than-expected return volumes for leased vehicles;
- Economic and demographic experience for pension and other
postretirement benefit plans (e.g., discount rates or investment
returns) could be worse than Ford has assumed;
- Pension and other postretirement liabilities could adversely
affect Ford’s liquidity and financial condition;
- Ford could experience unusual or significant litigation,
governmental investigations, or adverse publicity arising out of
alleged defects in products, perceived environmental impacts, or
otherwise;
- Ford may need to substantially modify its product plans to
comply with safety, emissions, fuel economy, autonomous vehicle,
and other regulations;
- Ford and Ford Credit could be affected by the continued
development of more stringent privacy, data use, and data
protection laws and regulations as well as consumers’ heightened
expectations to safeguard their personal information; and
- Ford Credit could be subject to new or increased credit
regulations, consumer protection regulations, or other
regulations.
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 Annual
Report on Form 10-K for the year ended December 31, 2020, as
updated by subsequent Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K.
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Media T.R. Reid 1.313.319.6683
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