Ford Motor Company Reports 17th Consecutive Quarter of Improved Operating Earnings

Strategic Insights -

Ford Motor Company has announced its financial results for the second quarter of 2000, revealing a 17th consecutive quarter of improved operating earnings. The company posted a record $2.7 billion in operating profits, a 10% increase from the same period in 1999. Revenues reached a new high of $44.5 billion, up 6% from the second quarter of 1999. The company's automotive operations earned $2.1 billion in the quarter, a 15% increase from the same period last year. Worldwide vehicle unit sales reached a record 1.99 million, with North America sales up 5% from the same period a year ago.

Key Takeaways:

  • Ford Motor Company has achieved its 17th consecutive quarter of improved operating earnings, with a record $2.7 billion in operating profits.
  • Revenues reached a new high of $44.5 billion, up 6% from the same period in 1999.
  • The company's automotive operations earned $2.1 billion in the quarter, a 15% increase from the same period last year.
  • Worldwide vehicle unit sales reached a record 1.99 million, with North America sales up 5% from the same period a year ago.
  • The company's after-tax return on sales (ROS) was 5.6%, up half a point from last year's second quarter.
  • Ford Credit earned $388 million in the second quarter, up 16% from the same period in 1999.
  • Hertz Corporation reported record earnings of $104 million in the second quarter, with Ford Motor Company's share of Hertz' second-quarter earnings being $84 million.
  • The company's share price reached a high of $55 per share, with a low of $40.38 per share.
  • The company's automotive net cash was $14.8 billion, with a record $25.6 billion in automotive cash.
  • The company will vote on its Value Enhancement Plan (VEP) in August, which will allow shareholders to exchange their current Ford common or Class B shares for new common or Class B shares, plus additional new Ford shares or cash up to $10 billion total.

Statistics:

  • Operating profits: $2.7 billion (10% increase from the same period in 1999)
  • Revenues: $44.5 billion (6% increase from the same period in 1999)
  • Automotive operating earnings: $2.1 billion (15% increase from the same period last year)
  • Worldwide vehicle unit sales: 1.99 million (5% increase from the same period a year ago)
  • After-tax return on sales (ROS): 5.6% (up half a point from last year's second quarter)
  • Ford Credit earnings: $388 million (16% increase from the same period in 1999)
  • Hertz Corporation earnings: $104 million (Ford Motor Company's share)
  • Automotive net cash: $14.8 billion
  • Automotive cash: $25.6 billion (record high)

Sources:

  • Ford Motor Company, Press Release, July 19, 2000
  • Visteon Corporation, Press Release, June 28, 2000
  • Hertz Corporation, Press Release, July 14, 2000