The FINANCIAL — 2013 is expected to be one of the best years in Ford Motor Company's history and projects 2014 to be another solid year for the company with 23 global product launches and continued investments around the world as the next step in its One Ford plan for profitable growth, according to Ford Motor Company.
2013 is expected to be among the best years in Ford’s history. Full-year Automotive revenue is projected to grow about 10 percent, with market share increases in all regions other than Europe, where Ford expects higher retail share of the retail passenger car industry, as well as improved share of the commercial vehicle market. In Asia Pacific Africa and China, the company expects record market shares, according to Ford Motor Company.
Ford is making good progress in implementing its Europe transformation plan and also announced earlier in the year a plan to restructure operations in Australia.
The company continued to strengthen its Automotive balance sheet. It estimates that it nearly cut in half the underfunded status of its global pension plans compared with the end of 2012. Ford also shared a comprehensive capital strategy with investors, one that is targeted to deliver high levels of shareholder value. Early in the year, Ford doubled its dividend and also implemented an anti-dilutive share repurchase program to offset compensation-related issuances. Based on performance and an improving balance sheet, the company now is rated investment grade by four of the major rating agencies.
Ford now projects that total company full-year pre-tax profit, excluding special items, to be about $8.5 billion, better than 2012 and in line with its most recent outlook. The company also is reconfirming its outlook that Automotive operating margin will be higher than a year ago and that Automotive operating-related cash flow will be substantially higher than 2012, potentially a record, according to Ford Motor Company. .
Ford expects North America full-year 2013 pre-tax profit to be the highest in more than a decade, with an operating margin of 9.5 percent to 10 percent; this compares to prior guidance of about 10 percent. The difference reflects mainly higher warranty expense of $250 million to $300 million associated primarily with the Escape 1.6 liter recall announced last month.
In South America, the company now expects results to be about breakeven as recent government actions in Venezuela have affected adversely the business and overall results in the region. This compares to prior guidance of about breakeven to profitable results for 2013.
The 2013 outlook for all other Automotive business units, Automotive net interest expense and Ford Credit is unchanged from prior guidance, according to Ford Motor Company.
Finally, the company expects its full year operating effective tax rate to be about 27 percent. This compares to prior guidance of less than 30 percent.Ford Expects Outstanding 2013 and Provides 2014 Outlook+
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