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Reviewing Ford’s Financial Metrics at the End of 1H17

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Nov. 20 2020, Updated 3:58 p.m. ET

Ford Motor Company

Ford Motor Company (F) is the second-largest US automaker after General Motors (GM) by sales volume. Its F-Series trucks have been the key strength of its US product portfolio for more than the last three decades. Despite this strength, the company is currently struggling to protect its profitability. Let’s take a look at its recent financials.

Note that Ford faces stiff competition from mainstream automakers (XLY) such as GM, Toyota Motor (TM), and Fiat Chrysler Automobiles (FCAU) in the US market.

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Recent financials

In 1Q17, Ford reported adjusted EPS (earnings per share) of $0.39, ~43% lower than its adjusted EPS of $0.68 in 1Q16. However, these EPS readings were slightly better than Wall Street analysts’ EPS estimates of $0.36 for 1Q17.

Ford reported a positive product mix as the key reason for its revenue rise despite its lower sales volumes in 1Q17. Higher structural costs, higher contribution costs, and negative volumes continued to hurt Ford’s profitability in the quarter.

During Ford’s 1Q17 earnings call, its management didn’t seem quite confident in its 2017 financial outlook. Management highlighted the risks and challenges Ford could face in 2017 due to the possibility of industrywide weakness.

Continue to the next article where we’ll take a look at Ford’s recent decision to change its top leadership.

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