Ford Unit to Break Out Results -- WSJ
Ford Motor Co.'s smart mobility subsidiary will start breaking out separate financial results to help offer investors better clarity on the revenue and earnings potential for the company's alternative transportation businesses.
Raj Rao, the mobility unit's chief executive, said Thursday the intent is for Ford Smart Mobility LLC to have its own profit and loss statements, much like Ford's other divisions, although he didn't give exact timing on when that would begin.
"Yes, we'll have our own balance sheet," Mr. Rao said, speaking at an event in Michigan. "We'll see that happen sooner than we expect."
The subsidiary, started in March 2016, oversees the auto maker's efforts to diversify into ride-sharing, autonomous-car fleets and other service-based business that executives believe have the potential to boost margins far beyond what Ford earns from its traditional automotive operations. The unit oversees Ford's recently acquired Chariot van-shuttle service and its partnership with Motivate, a bike-sharing firm in San Francisco.
Analysts have pressed Ford executives for more financial details on the future technologies it is investing in and better clarity on how they will deliver the 20% margins forecast by former chief executive Mark Fields. Mr. Fields was ousted last month in part because he wasn't able to provide a cohesive strategy on how the future bets would tie together.
Ford's new CEO Jim Hackett had recently led the mobility unit as chairman until his appointment to the top job, underscoring the importance of such future technologies to the auto maker's growth potential.
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(END) Dow Jones Newswires
June 09, 2017 02:47 ET (06:47 GMT)