Biker16 Posted January 28, 2016 Share Posted January 28, 2016 (edited) Ford Reports Record Full-Year Pre-Tax Profit of $10.8B; Net Income of $7.4B; Fourth Quarter Pre-Tax Profit up 96 Percent Ford Motor Company [NYSE: F] today reported its preliminary 2015 full year and fourth quarter financial results. View the press release here and visit shareholder.ford.com to view the slide presentation and access the webcast to Ford’s earnings call, which begins at 9 a.m. EST with Mark Fields, president and chief executive officer, and Bob Shanks, executive vice president and chief financial officer. Highlights Include: Record full year 2015 pre-tax profit, excluding special items, of $10.8B, up $3.5B; after-tax earnings per share of $1.93, excluding special items, up $0.59 cents from a year ago; full year net income of $7.4B, up $6.1B; after-tax earnings per share of $1.84, up $1.53 from a year agoFourth quarter pre-tax profit, excluding special items, of $2.6B, up $1.3B; net income of $1.9B, up $4.4B; after-tax earnings per share of $0.58, excluding special items, up $0.28 from a year agoVIEW THE FULL PRESS RELEASE (PDF) DOWNLOAD FINANCIAL SLIDES Edited January 28, 2016 by robertlane Quote Link to comment Share on other sites More sharing options...
jpd80 Posted January 28, 2016 Share Posted January 28, 2016 PRE-TAX PROFIT: North America $9.3 Billon Profit South America $832 Million LOSS Europe $250 Million Profit Africa & Middle East $31 Million Profit Asia Pacific $765 Million Profit Ford Credit $232 Million Profit Lots of positive indicators there, a lot for Ford to be proud of. Quote Link to comment Share on other sites More sharing options...
Pioneer Posted January 28, 2016 Share Posted January 28, 2016 Interesting. Asia-Pacific made more profit than FCA. 1 Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted January 28, 2016 Share Posted January 28, 2016 (edited) Nice to see EU operations back in the black. Edited January 28, 2016 by silvrsvt 1 Quote Link to comment Share on other sites More sharing options...
bzcat Posted January 28, 2016 Share Posted January 28, 2016 Brazil is a mess. But not a Ford problem per se. APAC profit excludes China JVs... basically Taiwan, Australia, New Zealand, ASEAN, and India. So that's a very significant chunk of change from those markets. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted January 28, 2016 Share Posted January 28, 2016 (edited) Ford Nth America's profit in spite F150 change over and low inventory. Very impressive indeed In early trading Ford's stock price was down, so was the market expecting more? Edited January 28, 2016 by jpd80 Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted January 28, 2016 Share Posted January 28, 2016 One interesting tidbit is the Ford Credit loan portfolio. Something like .12% of their loans are more than 60 days past due. That's a ridiculously small number. 1 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted January 28, 2016 Share Posted January 28, 2016 Given those incredibly low interest rates, that's a great result, I'm wondering how important that symbiosis is with building return customer base. Quote Link to comment Share on other sites More sharing options...
akirby Posted January 28, 2016 Share Posted January 28, 2016 One interesting tidbit is the Ford Credit loan portfolio. Something like .12% of their loans are more than 60 days past due. That's a ridiculously small number. What's the over/under on GMAC? 10%? Has to be much higher given all the "we financed someone with a 485 credit score last week" Chevy ads...... Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted January 28, 2016 Share Posted January 28, 2016 GM Financial's numbers were 1.6% in the 3rd quarter, which is an order of magnitude higher than FMC. http://www.businesswire.com/news/home/20151021005728/en/GM-Financial-Reports-September-Quarter-2015-Operating Quote Link to comment Share on other sites More sharing options...
Anthony Posted January 28, 2016 Share Posted January 28, 2016 One interesting tidbit is the Ford Credit loan portfolio. Something like .12% of their loans are more than 60 days past due. That's a ridiculously small number. That's not ridiculously small....that's just plain unheard of. The average FICO placement was 741 too. Daaaayyyuuuummmm Quote Link to comment Share on other sites More sharing options...
bzcat Posted January 28, 2016 Share Posted January 28, 2016 (edited) So sounds like Ford is just not financing people with questionable credit and leaving some sales on the table. Goes back to Biker's volume vs. profit debate Edited January 28, 2016 by bzcat Quote Link to comment Share on other sites More sharing options...
BrewfanGRB Posted January 29, 2016 Share Posted January 29, 2016 That's not ridiculously small....that's just plain unheard of. The average FICO placement was 741 too. Daaaayyyuuuummmm That's insane, really. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted January 29, 2016 Share Posted January 29, 2016 That's insane, really. I wonder if Ford Credit's economists believe that this bubble of new car sales is driven by questionable lending, and that they've tightened underwriting against the inevitable collapse. 1 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted January 29, 2016 Share Posted January 29, 2016 I wonder if Ford Credit's economists believe that this bubble of new car sales is driven by questionable lending, and that they've tightened underwriting against the inevitable collapse. Or is it simply Ford Credit avoiding exposure in the first place?"Not all applicants will qualify" seems to be a common citation when discussing Ford finance. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted January 30, 2016 Share Posted January 30, 2016 (edited) Or is it simply Ford Credit avoiding exposure in the first place? "Not all applicants will qualify" seems to be a common citation when discussing Ford finance. The question is why they're trying to avoid exposure. They can certainly afford to be less restrictive without being irresponsible. Edited January 30, 2016 by RichardJensen Quote Link to comment Share on other sites More sharing options...
blazerdude20 Posted January 30, 2016 Share Posted January 30, 2016 (edited) The reason is why they're trying to avoid exposure. They can certainly afford to be less restrictive without being irresponsible. If memory serves Ford has a strong relationship with Wells Fargo for its dealers. They pick up quite a bit of questionable lending and in turn get fed some good financers. Whereas GMAC and Ally take a lot of crap loans in the shorts. Edited January 30, 2016 by blazerdude20 Quote Link to comment Share on other sites More sharing options...
bzcat Posted January 30, 2016 Share Posted January 30, 2016 Or is it simply Ford Credit avoiding exposure in the first place? "Not all applicants will qualify" seems to be a common citation when discussing Ford finance. Generally speaking, majority of captive finance auto leases and loans are written to people with Tier 1 credit (FICO score above 680) in the US. So I suspect that's the majority of Ford Credit's loan portfolio. These are typically high performing loans and are held to maturity by Ford Credit. My guess is Ford Credit actually finances people well into Tier 2 credit (FICO score between 640 and 680) but they probably sell those lease and loan portfolio to someone else rather quickly. I'm sure Ford Credit does very little if any subprime (FICO score below 640) auto loans. I don't know if Ford Credit has much exposure outside US so that's a different ball of wax that I can't comment on. Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted January 30, 2016 Share Posted January 30, 2016 My guess is Ford Credit actually finances people well into Tier 2 credit (FICO score between 640 and 680) but they probably sell those lease and loan portfolio to someone else rather quickly. I'm sure Ford Credit does very little if any subprime (FICO score below 640) auto loans. They do. I'm in this range and got a good lease on a Focus at the end of September. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted January 30, 2016 Share Posted January 30, 2016 they probably sell those lease and loan portfolio to someone else rather quickly. Those numbers would still be carried on Ford's books, though. If Ford Credit securitizes a loan portfolio, they guarantee the interest payments on those securities, and those interest payments are based on underlying loan quality, therefore the past-due data from those loans is of significance to FMC,and is reported. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted January 30, 2016 Share Posted January 30, 2016 (edited) As always, Ford credit is good solid business. I'm wondering how much profit Ford NA could generate now that F150 inventory is built out, do we dare hope for two strong years until Ford starts changing product cycles on cars and utilities. Edited January 30, 2016 by jpd80 Quote Link to comment Share on other sites More sharing options...
Biker16 Posted January 30, 2016 Author Share Posted January 30, 2016 (edited) So sounds like Ford is just not financing people with questionable credit and leaving some sales on the table. Goes back to Biker's volume vs. profit debate A false dilemma (also called false dichotomy, false binary, black-and-white thinking, bifurcation, denying a conjunct, the either–or fallacy, fallacy of exhaustive hypotheses, the fallacy of false choice, the fallacy of the false alternative, or the fallacy of the excluded middle Edited January 30, 2016 by Biker16 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted January 30, 2016 Share Posted January 30, 2016 In raw terms, the North American pre-tax profit of 9.3 Billion divided by 2.6 million vehicles sales is around $3,600/vehicle. That is a net pre-tax figure after all other operating costs have been deducted. Ford hasn't broken out an after tax figure for North America but assuming 30% tax, it's probably around $2,500 per vehicle. Quote Link to comment Share on other sites More sharing options...
Biker16 Posted February 3, 2016 Author Share Posted February 3, 2016 (edited) GM profits soar on strong truck sales, resilience in China Mike Colias RSS feed Automotive News | February 3, 2016 - 7:30 am EST -- UPDATED: 2/3/16 8:41 am ET - adds details DETROIT -- General Motors today posted pretax operating profit of $10.8 billion for 2015 -- including $2.8 billion in the fourth quarter -- driven by booming sales of pricey SUVs and pickups and strong earnings in China despite the slowing market there. The full-year operating profit excluding one-time items -- the figure that GM says best reflects its underlying performance -- marked a 67 percent jump from 2014 and was the highest amount since before the company’s 2009 bankruptcy. (A spokesman couldn’t confirm whether that number eclipsed the record annual profit of pre-bankruptcy GM). GM’s fourth-quarter pretax operating profit excluding one-time items rose 15 percent to $2.8 billion. That was equal to $1.39 a share, vs. Wall Street forecasts of $1.21 a share. Net income for the September-to-December period was $6.27 billion, inflated by a gain of about $3.9 billion from the favorable tax treatment on the reclassification of assets in certain European markets. GM also said it will pay most of its 49,600 UAW-represented employees profit-sharing checks of $11,000 later this month, a record amount. “We continue to strengthen our core business, which is laying the foundation for the company to lead in the transformation of personal mobility,” GM CEO Mary Barra said in a statement. Fourth-quarter revenue was flat at $39.62 billion. full discussion http://www.blueovalforums.com/forums/index.php?/topic/60835-gm-profits-soar-to-108-billion-on-strong-truck-sales-resilience-in-china/ Edited February 3, 2016 by RichardJensen Quote Link to comment Share on other sites More sharing options...
twintornados Posted February 3, 2016 Share Posted February 3, 2016 GM profits soar on strong truck sales, resilience in China Mike Colias RSS feed Automotive News | February 3, 2016 - 7:30 am EST -- UPDATED: 2/3/16 8:41 am ET - adds detailsDETROIT -- General Motors today posted pretax operating profit of $10.8 billion for 2015..... Curious why you would post this here when you already started a thread in the "competing products" column... Quote Link to comment Share on other sites More sharing options...
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