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Ford Media Center
DEARBORN, Mich., Jan. 10, 2017 – Ford Motor Company (NYSE: F) is on track for another strong year in 2016 and continues to expect about $10.2 billion in total company adjusted pre-tax profit. The company now expects its adjusted effective tax rate to be in the low 30 percent range. Ford will give further details this evening when it presents at the Deutsche Bank Global Auto Industry Conference. The slide deck of that presentation can be found here.
“As we close 2016, Ford continues to be a solid investment with attractive upside on emerging opportunities,” said Mark Fields, Ford president and CEO. “We are pleased to, once again, reward our shareholders with a regular and supplemental dividend, as we continue delivering profitable growth for all.”
As a result of the company’s performance in 2016, Ford’s Board of Directors declared a first quarter dividend of $0.15 per share and a $200 million supplemental cash dividend that is equal to $0.05 per share. This provides a combined total of $0.20 per share of dividends on the company’s outstanding Class B and common stock.
The first quarter regular dividend maintains the same level as the dividends paid in 2016. The first quarter regular and supplemental dividends are payable on March 1, 2017 to shareholders of record at the close of business on Jan. 20, 2017. Subject to the approval of the Board of Directors, the company will make distributions totaling about $2.8 billion in 2017. By year-end, cumulative distributions to shareholders will total $15.4 billion since the company’s regular dividend was restored in 2012.
Consistent with the guidance outlined at Ford’s Investor Day in September, the company expects continued strong performance in 2017, with total company adjusted pre-tax profit somewhat lower compared to 2016 due to increased investments in electrification, autonomy and mobility. The company also anticipates cost efficiencies of greater than $3 billion in 2017 alone and improved profitability in 2018 – led by gains in the core business.
At tonight’s Deutsche Bank Global Auto Industry Conference, Fields will provide an update on Ford’s strategic priorities to fortify its profit pillars, transform underperforming parts of its business and grow emerging opportunities as it expands to an auto and mobility company.
Ford is focused on building on its clear global leadership in trucks, vans, commercial vehicles and performance vehicles, while growing global strength in utility vehicles. Ford also is transforming underperforming parts of its core business, including luxury, small vehicles and select emerging markets – and is already seeing benefits.
In electrification, last week, Ford detailed seven of the 13 new global electrified vehicles it plans to introduce in the next five years. This announcement comes on the heels of the recently unveiled next-generation Fusion Hybrid autonomous development vehicle, which demonstrates the advancement of Ford’s in-house hardware and software engineering efforts and brings the company one step closer to delivering a high-volume, fully autonomous vehicle for ride sharing in 2021.
Ford also continues to innovate in the area of connectivity, which supports both the core business as well as growth in emerging opportunities. Last week at CES, the company announced several new initiatives, including partnering with Toyota to establish the SmartDeviceLink Consortium and bringing Amazon’s Alexa into Ford vehicles.
Ford’s presentation at the Deutsche Bank Global Auto Industry Conference will begin at approximately 6:30 p.m. EST today. To access the presentation materials and a listen-only audio webcast, visit shareholder.ford.com.
Note: Total company adjusted pre-tax profit is a non-GAAP financial measure because it excludes special items. Ford does not provide guidance on net income, the comparable GAAP financial measure. Full-year net income in 2016 will include potentially significant special items, including pension and OPEB remeasurement losses, which presently are difficult to quantify with reasonable certainty.
Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptions by our management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, including, without limitation:
We cannot be certain that any expectation, forecast, or assumption made in preparing forward-looking statements will prove accurate, or that any projection will be realized. It is to be expected that there may be differences between projected and actual results. Our forward-looking statements speak only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events, or otherwise. For additional discussion, see “Item 1A. Risk Factors” in our 2015 Form 10-K Report, as updated by our subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Ford Motor Company is a global company based in Dearborn, Michigan. The company designs, manufactures, markets and services a full line of Ford cars, trucks, SUVs, electrified vehicles and Lincoln luxury vehicles, provides financial services through Ford Motor Credit Company and is pursuing leadership positions in electrification; mobility solutions, including self-driving services; and connected services. Ford employs approximately 188,000 people worldwide. For more information regarding Ford, its products and Ford Motor Credit Company, please visit www.corporate.ford.com.