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How Sharp Drop in Tax Rates Fueled Ford’s 1Q18 Revenue

John Parker
How Sharp Drop in Tax Rates Fueled Ford’s 1Q18 Revenue

In 1Q18, Ford Motor Company’s (F) global revenue stood at $42 billion, an increase of about 7% from $39.1 billion 1Q17. The revenue from the company’s automotive segment also witnessed good YoY (year-over-year) growth. Ford’s 1Q18 automotive revenue was at $39.0 billion, also up by 7% YoY from $36.5 billion in 1Q17. Despite a 2% YoY drop in the company’s global wholesales volume, its automotive revenue rose primarily due to lower tax rates. During the first quarter this year, Ford’s adjusted effective tax rate was at 9% as compared to 28.6% a year ago.