Ford Motor Co.
) has amended and extended the size and maturity of its revolving
credit facility of $8.9 billion, which was scheduled to mature on
November 30, 2013. The lenders have agreed to increase the size of
the credit line by $400 million to $9.3 billion and maturity by 2
years to November 30, 2015.
The facility of $8.9 billion was undrawn, except $130 million
that has been utilized for letters of credit. Of the extended $9.3
billion facility, $300 million are scheduled to mature on November
The extension will help the company strengthen its balance sheet
and obtain an investment grade rating. The facility is a part of
more than $23 billion borrowed by Ford in late 2006 in order to
support its revival from the global economic crisis.
Ford, a Zacks #3 Rank (Hold) company, posted a 34% fall in
profit to $797 million or 20 cents per share (before special items)
in the fourth quarter of 2011 from $1.20 billion or 30 cents per
share (before special items) in the same quarter of 2010. With
this, the automaker has missed the Zacks Consensus Estimate by 7
cents per share.
Total revenue during the quarter grew 6.5% to $34.6 billion. It
was higher than the Zacks Consensus Estimate of $31.8 billion.
Ford had cash and marketable securities of $22.9 billion as of
December 31, 2011, an improvement from $20.5 billion as of December
31, 2010. Total Automotive liquidity at the year-end was $32.4
billion, including all available credit lines. Total Automotive
debt stood at $13.1 billion as of December 31, 2011 compared with
$19.1 billion as of December 31, 2010.
For full year 2012, Ford expects industry volume (including
medium and heavy trucks) of 13.5 million units-14.5 million units
in the U.S. and 14.0 million units-15.0 million units in the 19
European markets covered by the automaker. The company expects its
2012 market share in U.S. and Europe to be almost at the same level
as 2011. Its market share in 2011 was 16.5% in the U.S. and 8.3% in
During the year, Ford anticipates Automotive pre-tax operating
profit to improve from 2011. Ford Credit is expected to be solidly
profitable, although at a lower level compared with 2011. Total
company pre-tax operating profit is expected to be almost flat with
Ford's cross-town rival,
General Motors Company
) posted a profit of $0.7 billion or 39 cents per share in the
fourth quarter of 2011, missing the Zacks Consensus Estimate by 3
cents per share. The results excluded net loss from special items
of $0.2 billion or 11 cents per share. It compared with the profit
of $0.9 billion or 52 cents per share in the fourth quarter of
The company's revenues in the quarter scaled up 3% to $38.0
billion, which was in line with the Zacks Consensus Estimate. Unit
sales escalated 3% to 2.2 million vehicles from the fourth quarter
of 2010. The automaker occupied a market share of 11.7% during the
quarter, up from 11.5% in the year-ago quarter.
FORD MOTOR CO (
): Free Stock Analysis Report
GENERAL MOTORS (
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