Ford Motor Company (F) Q4 2009 earnings summary

Executive summary

• Full-year 2009 net income attributable to shareholders was $2.7B, or $0.86 diluted EPS, versus a $14.8B loss and $6.50 loss per share in 2008.

• Revenue fell to $118.3B from $145.1B; results improved substantially, supported by cost reductions, stronger net pricing and debt-reduction gains.

• Q4 pretax income was $1.06B; net income attributable to shareholders was $70M, with Automotive pretax income of $359M and Financial Services pretax income of $701M.

Financial highlights

• 2009 total pretax income was $3.0B versus a $14.5B loss in 2008; income tax provision was $69M.

• Automotive sales were $105.9B, down 18% YoY; operating loss was $2.7B versus $9.3B in 2008.

• Automotive results improved $13.1B YoY, including $4.7B of net debt-reduction gains and $5.3B from non-recurrence of 2008 North America asset impairment charges.

• Consolidated operating cash flow was $16.0B; Automotive operating-related cash flow, a non-GAAP measure, was negative $0.3B.

Outlook and guidance

• 2010 planning assumes U.S. industry sales of 11.5M–12.5M units and Europe sales of 13.5M–14.5M units; global industry volume projected at 65M–75M.

• 2010 plan: positive Automotive operating-related cash flow, capital spending of $4.5B–$5B, and profitability before special items for North America, Automotive and total operations.

• 2011 target remained solid pretax profitability excluding special items, with positive Automotive operating-related cash flow.

• 2010 finance-segment outlook was profitable but below 2009; year-end managed receivables expected at $80B–$90B.