Ford Motor Co. (NYSE:F) Q3 2019 Earnings Conference Call - Final Transcript

Oct 23, 2019 • 05:30 pm ET

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Ford Motor Co. (NYSE:F) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen. My name is Holly, and I will be your conference operator today. At this time, I would like to welcome you to the Ford Motor Company's Third Quarter 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] After the question-and-answer session, there will be closing remarks. At this time. I would like to turn the call over to Lynn Antipas Tyson, Executive Director of Investor Relations. Lynn?

Executive
Lynn Antipas Tyson

Thank you, Holly. Welcome, everyone to Ford Motor Company's Third Quarter 2019 Earnings Call. Presenting today are Jim Hackett, our President and CEO, and Tim Stone, our Chief Financial Officer. Also joining us are Joe Hinrichs, President, Automotive; Jim Farley, President, New Businesses, Technology and Strategy; and David McClelland, CEO of Ford Credit. Jim Hackett will begin with a brief review of the quarter and progress against our strategic initiatives. Tim will follow with a more detailed look at our results and then we'll turn to Q&A. Following Q&A, Jim Hackett will have a few closing remarks.

Our comments today will include some non-GAAP references. These are reconciled to the most comparable US GAAP measures in the appendix of our earnings deck, which can be found, along with the rest of our earnings materials, at shareholder.ford.com. Actual results may differ from those stated and the most significant factors that could cause actual results to differ are included on Page 22 of our presentation. In addition, unless otherwise noted, all comparisons are year over year.

As a reminder, in 2020, we will update the business units in our automotive segment to align with changes to our management and reporting structure. To help you with this transition, our earnings deck appendix has a schematic of the changes, including where certain joint ventures will be reported. Also, our revised 2018 and 2019 results show how they will appear in the new reporting structure. The investor relations team is available if you have specific questions about these changes.

Now, I'll turn the call over to Jim.

Executive
James P. Hackett

Thanks, Lynn and hello, everyone. Overall, the Ford team delivered solid operational results in the third quarter, while at the same time, we made further progress on the global redesign of the company. We know, though, that we have much more work to do. And this is the mandate at Ford, executing in the now, while transforming into a much more fit, agile and customer-centric company that can win in an era of rapid change and innovation. Our team is operating with urgency and a focus to meet these challenges.

Please turn to Page 4. Now touching briefly on the quarter, we generated positive adjusted free cash flow. The year-to-date adjusted free cash flow was up 80%, largely driven by improvement in our automotive business. In the quarter, we delivered $1.8 billion in company-adjusted EBIT. That was up 8%, supported by improvement in our businesses in China, North