Tesla ZEV credit changes will alter profit picture, but Musk still confident

Filed under: EV/Plug-in, Tesla Motors, Legislation and Policy

tesla model s logo

Tomorrow, we will get a fresh glimpse into the financial situation over at Tesla Motors. That’s when the California automaker, always ready to go its own way and not release monthly sale figures, will discuss its second-quarter SEC filing. From what we’ve been told, it won’t be as rosy at three months ago. In early May, when Tesla announced Q1 results and said it had made its first-ever quarterly profit, it warned that the second quarter results would not be as good. Specifically, the company said, “deferred revenue recognition required by GAAP for lease accounting will lead to a net loss on paper in Q2.” But we’ll find out the details soon enough.

Looking forward, there is another possible hurdle for Tesla’s profits. The California Air Resources Board (CARB) is thinking about changing the way it calculates zero-emission vehicle bonus credits. These would not be retroactive, but CARB may no longer allow battery swapping – which the Model S has – to get the bonus as a fast refueling option. This would reduce the value of Tesla’s ZEV credits that it sells to other automakers. In the first quarter, Tesla made $11.2 million in profit and took in $67.9 million in revenue from selling ZEV and other “regulatory” credits. You can see how, if the ZEV value declines, the company’s profit could also go away. Three months ago, Tesla said it was prepared for Q4 2013 ZEV credits to equal zero and yet Tesla CEO Elon Musk has said the company will be profitable by the end of the year even without selling credits.

Tesla has long relied on ZEV credits, and all the way back in 2010 there were stories about how the credits were running out so this is well-trodden ground. You can find all of the details of Tesla’s 2013 Q1 profits here and read more about the potential CARB changes here.

Tesla ZEV credit changes will alter profit picture, but Musk still confident originally appeared on Autoblog Green on Tue, 06 Aug 2013 17:29:00 EST. Please see our terms for use of feeds.

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Official: Toyota reports huge quarterly profit increase, raises forecast for the year

Filed under: Toyota, Earnings/Financials

2014 Toyota Tundra Grille

Toyota isn’t just the world’s largest automaker – so far its the biggest winner for quarterly profits. With an enormous $5.5 billion take during Q2, Toyota took advantage of the weak Japanese yen and strong US demand to record a 94-percent improvement in profit over the same period from last year. So far, Toyota brought in larger profits than Ford and General Motors combined.

Toyota is showing no signs of slowing down either, as it has bumped up its forecast for full-year global production, going from 9.94 million to 10.12 million vehicles, on the back of a 13-percent drop in the buying power of the Japanese yen versus the US dollar. That strong exchange rate is largely responsible for Toyota’s big jump in profits, although it also managed to shift 1.3 million vehicles in the US market this year. Strong Camry sales have also helped. But while Toyota is raking in the cash, it actually saw a small drop in market share, down 0.1 percent to 14.3 percent of the US market.

As is the case with most automakers, Toyota seems flummoxed by Europe, where it recorded less than one percent of its revenue. Still, as Automotive News points out, Toyota only maintains a 4.5-percent market share in Europe and is far less dependent on the continent than other manufacturers. Toyota also struggled at home, much like Honda. With 525,777 units sold, JDM sales were down almost 51,000 units, although Toyota still saw its operating profit jump from $3.5 billion to $4.6 billion.

Scroll down for Toyota’s official press release.

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Toyota reports huge quarterly profit increase, raises forecast for the year originally appeared on Autoblog on Sun, 04 Aug 2013 15:19:00 EST. Please see our terms for use of feeds.

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Report: Ferrari reports fewer sales, more profit to prove strategy is working

Filed under: Earnings/Financials, Ferrari

Ferrari badge

Ferrari’s angle of emphasizing exclusivity by limiting deliveries is appearing to bear fruit. The company posted a 7.1-percent increase in revenues to 1.7 billion Euros ($2.2 billion at today’s exchange rates) during the first half of 2013. Net profits, meanwhile, saw a jump of 20 percent to 116.2 million Euros ($153.5 million). The Prancing Horse delivered 3,767 cars, which, while an increase of 2.8 percent, represents a rate of growth that’s slower than in the first quarter of 2013.

While Ferrari may be actively trying to slow its sales down to below 7,000 in 2013, it’s seen increased numbers in the US, Great Britain and Germany, along with double-digit growth in the Middle East and Japan (39 percent and 28 percent, respectively).

The move to limit sales should have a greater impact on the numbers that come in later this year, which we told you about back in May. Ferrari’s controversial move has already seen a drop in sales to China, which saw 50 fewer Prancing Horses than this time last year.

Still, the early stages of Ferrari’s new plans have been a success, as the Chairman said, “An increase of just over two percent in volumes has been matched by 20 percent growth in EBIT which is and will remain our primary objective along with maintaining the exclusivity and value of our cars over time.” We love seeing automakers do well, but somehow, the world just seems a sadder place with fewer Ferraris in it.

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Ferrari reports fewer sales, more profit to prove strategy is working originally appeared on Autoblog on Thu, 01 Aug 2013 19:15:00 EST. Please see our terms for use of feeds.

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Official: Honda reports $1.9 billion profit in first quarter despite sales lag at home

Filed under: Honda, Earnings/Financials

2013 Honda Civic badge

Ford, General Motors and Chrysler have been living in a world of sunshine and buttercups after their April-through-June financials hit the newswire, and Toyota is doing pretty good as well. Honda? Not so much.

While Japan’s third-largest manufacturer saw $1.9 billion in profits, the 5.1-percent jump was lower than expected thanks to a drop in its home-market sales. US sales also took a sting, as Honda hasn’t been able to match the SUV and truck demand that are currently permeating the American market, despite an uptick in Accord sales.

Honda’s initial forecasts targeted a take of 209.3 billion yen ($2.1 billion at today’s rates), and while a $200 million shortfall is nothing to sniff at, we’d hardly take this as Honda being in trouble. And even with the dip, Honda hasn’t adjusted its forecast for the fiscal year, which remains at 780 billion yen ($7.9 billion).

Still, the cause of the problem for Honda isn’t one that’s easily solvable. Accord sales were strong, helping the brand move 745,578 vehicles during the first half of 2013, which is a six-percent improvement in year-over-year sales. Yet, Honda’s market share shrunk by 0.1 percent, and the Japanese manufacturer’s lack of competitive SUVs and pickups is worrying. In the short term, though, the arrival of the new Acura MDX in North American dealerships should deliver a small shot in the arm.

Honda’s home-market issues are also troubling, with Reuters reporting a 24-percent drop in sales, thanks to the discontinuation of government subsidies. All told, this isn’t the rosy outlook we’ve gotten used to since the latest batch of earnings came out.

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Honda reports $1.9 billion profit in first quarter despite sales lag at home originally appeared on Autoblog on Wed, 31 Jul 2013 16:00:00 EST. Please see our terms for use of feeds.

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Official: GM joins Ford in booking $1.2B quarterly profit

Filed under: GM, Earnings/Financials

General Motors' Detroit headquarters at the Renaissance Center

Ford isn’t the only American automaker that’s in the money. General Motors has just reported a second quarter income of $1.2 billion, although that number actually represents a year-to-year drop compared to Q2 2012. This drop can be chalked up to the expense behind launching a new line of full-size pickup trucks (the 2014 GMC Sierra and Chevrolet Silverado), as well as the acquisition of GM Korea. Aside from those one-time costs, GM reported a seven-percent increase in income before interest and taxes, to $2.3 billion.

Like Ford, GM also trimmed its European losses, but by a larger margin – where Ford’s losses were $58 million lower for Q2, GM slashed $284 million over the second quarter of 2012 (the equivalent of $71 million per quarter). GM’s North American success, like Ford’s, can be tied largely to strong demand for pickups. Even with the changeover from the old Sierra and Silverado to the new models, Automotive News reports that full-size truck profits actually increased by five percent versus 2012. According to AN, this is GM’s fourteenth straight quarter in the black since its bankruptcy in 2009.

For all the numerical details, check out GM’s official press release by scrolling below.

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GM joins Ford in booking $1.2B quarterly profit originally appeared on Autoblog on Thu, 25 Jul 2013 13:31:00 EST. Please see our terms for use of feeds.

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Report: Ford books $1.2B profit in second quarter on strength of trucks

Filed under: Ford, Earnings/Financials

Ford logo

Ford is rolling along nicely, with a positive second-quarter sales report and a $2.3 billion profit in North America. The Dearborn, Michigan-based manufacturer captured $1.2 billion globally from April to June, with a $177 million profit in Asia. Even in Europe, the land of doom and gloom for automakers not named Mazda, Ford saw some success as it lowered its expected full-year loss from $2 billion to $1.8 billion. The company lost $348 million in Europe during the second quarter, which, believe it or not, represents a $56-million improvement over 2012.

According to the report on CNBC, Ford enjoyed a three-percent increase in pre-market trading thanks to the news. The strong demand for the F-150 propelled growth in the US market, while Ford’s 47-percent increase in Asian sales can be attributed to the new EcoSport crossover and Kuga (Ford Escape in the US) arriving in the somewhat fragile Chinese market.

Pre-tax profits for Ford are expected to be in the neighborhood of $8 billion by the end of the year, with sales the US, Europe, and China all looking up. The company also shifted $4.78 billion of asset-backed debt in the form of bonds, according to a report by Bloomberg. This move came amidst rumors of the Federal Reserve cutting back on its $85-billion-per-month bond purchases. Ford wasn’t alone among automakers looking to sell off debt, though, as Mercedes-Benz and Nissan shifted around $1 billion each in bonds relating to auto loans.

Ford books $1.2B profit in second quarter on strength of trucks originally appeared on Autoblog on Wed, 24 Jul 2013 10:59:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #228: Lamborghini Aventador, Lincoln performance, Chrysler profit and loan payback

Filed under: Podcasts, Acura, Chevrolet, Chrysler, Ford, Lincoln, Earnings/Financials

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

Podcast Team number one – Chris Shunk, Dan Roth and Zach Bowman – kick it for Autoblog Podcast #228. The crew mulls our First Drive of the Lamborghini Aventador, a Lincoln performance sect, Chrysler’s profit and loan payback and the Forbes worst car list. Your feedback and questions finish it off, and we’ve re-posted the Q&A at the bottom of this post so you can play along at home, too. Thanks for listening, we’ll see you next week!

Autoblog Podcast #228: Lamborghini Aventador, Lincoln performance, Chrysler profit and loan payback

  • 2012 Lamborghini Aventador First Drive
  • Lincoln performance divison rumors
  • Chrysler profit and accelerated loan payback
  • Forbes’ Worst cars on the Road List

In the Autoblog Garage:

2011 Chevrolet Camaro Convertible V6
2011 Ford Fiesta SE Hatchback
2011 Acura TSX Sport Wagon

Hosts: Dan Roth, Chris Shunk, Zach Bowman
Runtime: 01:26:24


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Feedback:
Email: Podcast at Autoblog dot com
Voicemail: 734-288-8POD (734-288-8763)

Review the show in iTunes and take our survey

Autoblog Podcast #228: Lamborghini Aventador, Lincoln performance, Chrysler profit and loan payback originally appeared on Autoblog on Tue, 03 May 2011 17:44:00 EST. Please see our terms for use of feeds.

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Hyundai quarterly profit up 46% to $1.75B

Filed under: Hyundai, Earnings/Financials

hyundai logo sonata

Hyundai has had a big year, and the results are showing in the form of healthy profits. According to BusinessWeek, the Korean automaker earned $1.75 billion in the first quarter, up 46 percent versus the first quarter of 2010. Overall revenue was up 21 percent to $17 billion.

Sales volume was higher as well, as the 922,000 units sold globally represented a nine percent increase. Much of that increase occurred in plants in the U.S. and China, where output climbed by 14 percent. A richer model mix also buoyed Hyundai’s profits, as pricing per model rose by an impressive 14 percent in overseas markets and 2.5 percent in its Korean home market.

Hyundai’s impressive quarterly performance helped rally stocks in Korea, and the automaker saw a 7.5 percent gain on the day. For the year, Hyundai’s share price has risen a meteoric 44 percent.

[Source: BusinessWeek | Image: Zach Bowman/AOL]

Hyundai quarterly profit up 46% to $1.75B originally appeared on Autoblog on Thu, 28 Apr 2011 10:56:00 EST. Please see our terms for use of feeds.

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Profit Proliferation: Porsche riding high on Cayenne, Panamera sales

Filed under: Sedan, Performance, SUV, Europe, Porsche, Earnings/Financials, Luxury

2011 Porsche Panamera

Porsche Panamera – Click above for high-res image gallery

Porsche tripled its profits in 2010, thanks largely to profits from the Cayenne and Panamera. The Stuttgart-based automaker reported $960 million in profits before taxes and interest in 2010, up from $227 million the year before.

More impressive is the fact that those numbers represent a shortened fiscal year in 2010, meaning these things are moving like the proverbial hot cakes. Porsche’s five-month revenue total increased 59 per cent to 3.87 billion Euros.

Porsche is hoping to expand its global sales to 200,000 by 2018, or roughly double the number of dreamboats it moves now. With sales climbing this quickly, that goal doesn’t seem too far off.

Gallery: First Drive: 2010 Porsche Panamera

All Photos Copyright (C)2011 Michael Harley/AOL

[Source: BusinessWeek]

Profit Proliferation: Porsche riding high on Cayenne, Panamera sales originally appeared on Autoblog on Thu, 17 Mar 2011 17:40:00 EST. Please see our terms for use of feeds.

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Report: Accounting change could net Ford $13-billion profit

Filed under: Etc., Government/Legal, Ford, Earnings/Financials

2011 Ford Mustang

Ford is looking to make an accounting change this year that would eliminate a valuation allowance from its books and net the company $10 to $13 billion in profits. The move shows that Ford is confident that it sustain its new-found profitability, after four straight years of operating losses from 2005 to 2009.

The valuation is held against deferred tax assets, which the company needed as it saw profits disappear. With the company making $9.3 billion in profits over the last two years, the valuation isn’t necessary any more.

When the move is made, Ford said it will record it as a “special item for the quarter,” to avoid a negative tax effect. Even after Ford gets the valuation allowance off its books, the company may still be able to operate tax-free until the end of the decade, as it is still eligible for tax breaks after $31.4 billion in losses from 2005-2009.

[Source: The Detroit News | Image: John Neff/AOL]

Report: Accounting change could net Ford $13-billion profit originally appeared on Autoblog on Sun, 06 Mar 2011 15:58:00 EST. Please see our terms for use of feeds.

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