Ford Motor Company (F) CEO Mark Fields on Q2 2014 Results – Earnings Call Transcript

Source: Seeking Alpha

 

Ford Motor Company (NYSE:F)

Q2 2014 Results Earnings Conference Call

July 24, 2014; 08:30 a.m. ET

Executives

Mark Fields – President & Chief Executive Officer

Bob Shanks – Chief Financial Officer

Stuart Rowley – Corporate Controller

Neil Schloss – Corporate Treasurer

Paul Andonian – Director of Accounting

Mike Seneski – Ford Credit, Chief Financial Officer

George Sharp – Executive Director of Investor Relations

Analysts

George Galliers – ISI

Brian Johnson – Barclays

Colin Langan – UBS

Patrick Archambault – Goldman Sachs

Adam Jonas – Morgan Stanley

Joe Spak – RBC Capital Markets

Ryan Brinkman – JPMorgan

John Murphy – Bank of America

Dee-Ann Durbin – AP

Emmanuel Rosner – CLSA

Rod Lache – Deutsche Bank

Itay Michaeli – Citigroup

Operator

Good day ladies and gentlemen and welcome to your Ford, Second Quarter Earnings Conference Call. My name is Kanti and I’m your operator for today.

At this time all participants are on listen-only mode. We will conduct a question-and-answer session towards the end of the conference. (Operator Instructions). As a reminder, this call is being recorded for replay purposes.

I would now like to turn the call over to Mr. George Sharp, Executive Director of Investor Relations. Please proceed sir.

George Sharp – Executive Director of Investor Relations

Thank you Kanti and good morning everyone. I’d like to welcome you and thank you for joining us today either by phone or webcast. On behalf of the entire Ford management team, I’d like to thank you for taking the time to be with us this morning, so we can provide you with additional details of our second quarter 2014 financial results.

Now, presenting today are Mark Fields, who became President and CEO of Ford earlier this month, and Bob Shanks, our Chief Financial Officer. Also participating are Stuart Rowley, Corporate Controller; Neil Schloss, Corporate Treasurer; Paul Andonian, Director of Accounting; and Mike Seneski, Ford Credit CFO.

Now, copies of this morning’s press release and presentation slides are available on Ford’s Investor and Media websites. The financial results discussed today are preliminary and include references to non-GAAP financial measures.

Now any non-GAAP financial measure are reconciled to the U.S. GAAP equivalent in the appendix of the slide deck, and final data will be included in our Form 10-Q. Now finally, today’s presentation includes some forward-looking statements about our expectations for Ford’s future performance. Of course, actual results could be different.

The most significant factors that could affect future results are summarized at the end of this presentation and detailed in our SEC filings.

With that, I’d now like to turn the presentation over to Mark.

Mark Fields – President & Chief Executive Officer

Thanks George. I’m really pleased to join you this morning and today we’ll review our second quarter financial results, the details behind them and our outlook ahead. So let’s get right into the first slide.

Our strong results this quarter are due once again to the success of our ONE Ford plan, which remains unchanged. We are continuing to focus on all four elements of the plan. They have served us very well and will continue to be our focus going forward.

We also plan to build on our success by accelerating the pace of progress throughout our business. In many ways we are just starting to see the full benefits and strength of ONE Ford and we intend to maximize these opportunities going forward.

At the same time, we are passionate about product excellence and leading in innovation. We are committed to building on the product strength today, with even more new products and innovations that will deliver growth for our stakeholders and define our company going forward.

Now let’s turn to slide two for a look at the second quarter. Overall, we delivered a strong quarter. We achieved our 20^th consecutive profitable quarter and our best quarterly pretax profit since the second quarter of 2011.

We also delivered positive automotive operating related cash flow and ended the quarter once again with strong liquidity. Although second quarter wholesale volume and revenue declined 1% year-over-year, we achieved higher market share in Asia Pacific, driven by record share in China.