Ford Motor (NYSE: F) after the markets closed on Thursday reported a 2022 full-year net loss of $2.0 billion. During Q4 Ford posted an adjusted EBIT $10.4 billion, and operating cash flow $1.2 billion for the quarter, $6.9 billion for the year. This was in stark contrast to GM, which reported a record $14.5 billion in earnings for 2022 earlier this week. (autoinformed.com: GM Posts Record $14.5 Billion in Earnings During 2022)
“We should have done much better last year,” said CEO Jim Farley. “We left about $2 billion in profits on the table that were within our control, and we’re going to correct that with improved execution and performance.”
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Ford revenue for Q4 and all of 2022 reached $44.0 billion and $158.1 billion, respectively. For the same periods, the company had net income of $1.3 billion and a net loss of $2.0 billion, and adjusted EBIT of $2.6 billion and $10.4 billion. The results were below Ford’s expectations, “attributable, in part, to execution issues in an environment with supply chain and production instability, resulting in higher costs and lower-than-planned volumes,” Ford said. (autoinformed.com: Ford Changes Supply Chain and Product Development Execs)
Operating cash flow for the year 2022 was $6.9 billion; full-year adjusted free cash flow was $9.1 billion. The company ended 2022 with a balance sheet: $32 billion in cash and $48 billion of liquidity.
Nevertheless, Ford declared a regular dividend of 15 cents per share, plus supplemental dividend of 65 cents per share, enabled in part by the “nearly complete monetization of stake in Rivian Company.” Ford anticipates full-year 2023 adjusted EBIT of $9 billion to $11 billion and adjusted free cash flow of about $6 billion.
With the start of 2023, Ford is now organized by and will report operating performance based on the three new customer–centered business segments – Ford Blue, Ford Model e and Ford Pro – rather than as a single automotive business with regional details, a shift the company first announced last March.
“This goes way beyond how we account for the business,” said CFO John Lawler. “This is a fundamental change in how we think, make decisions and run the company – so we’re creating great experiences and value for customers and fulfilling the huge promise of Ford+.” (AutoInformed.com: Ford Motor Structure Threatens Viability. Vast Reorg Coming)
On 23 March Ford will hold a “teach in” (following GM’s practice of “Investors’ Day”) about the new structure and reporting for investors and other stakeholders. At the event, which will be held at the New York Stock Exchange and also webcast “live,” Ford will explain how revenue, products and assets are assigned to each segment, and show recast financials for 2021 and 2022. (autoinformed.com: GM Raises 2022 Earnings, Offers 2023-25 Performance Goals)
“We have great flexibility to invest in the Ford+ growth plan and return capital to shareholders at the same time,” said Lawler. “Going forward, we intend to target distributions of 40% to 50% of free cash flow.”
Ford Misses Q4 and Full Year 2022 Forecasts. Loses $2B
Ford Motor (NYSE: F) after the markets closed on Thursday reported a 2022 full-year net loss of $2.0 billion. During Q4 Ford posted an adjusted EBIT $10.4 billion, and operating cash flow $1.2 billion for the quarter, $6.9 billion for the year. This was in stark contrast to GM, which reported a record $14.5 billion in earnings for 2022 earlier this week. (autoinformed.com: GM Posts Record $14.5 Billion in Earnings During 2022)
“We should have done much better last year,” said CEO Jim Farley. “We left about $2 billion in profits on the table that were within our control, and we’re going to correct that with improved execution and performance.”
Click chart to enlarge.
Ford revenue for Q4 and all of 2022 reached $44.0 billion and $158.1 billion, respectively. For the same periods, the company had net income of $1.3 billion and a net loss of $2.0 billion, and adjusted EBIT of $2.6 billion and $10.4 billion. The results were below Ford’s expectations, “attributable, in part, to execution issues in an environment with supply chain and production instability, resulting in higher costs and lower-than-planned volumes,” Ford said. (autoinformed.com: Ford Changes Supply Chain and Product Development Execs)
Operating cash flow for the year 2022 was $6.9 billion; full-year adjusted free cash flow was $9.1 billion. The company ended 2022 with a balance sheet: $32 billion in cash and $48 billion of liquidity.
Nevertheless, Ford declared a regular dividend of 15 cents per share, plus supplemental dividend of 65 cents per share, enabled in part by the “nearly complete monetization of stake in Rivian Company.” Ford anticipates full-year 2023 adjusted EBIT of $9 billion to $11 billion and adjusted free cash flow of about $6 billion.
With the start of 2023, Ford is now organized by and will report operating performance based on the three new customer–centered business segments – Ford Blue, Ford Model e and Ford Pro – rather than as a single automotive business with regional details, a shift the company first announced last March.
“This goes way beyond how we account for the business,” said CFO John Lawler. “This is a fundamental change in how we think, make decisions and run the company – so we’re creating great experiences and value for customers and fulfilling the huge promise of Ford+.” (AutoInformed.com: Ford Motor Structure Threatens Viability. Vast Reorg Coming)
On 23 March Ford will hold a “teach in” (following GM’s practice of “Investors’ Day”) about the new structure and reporting for investors and other stakeholders. At the event, which will be held at the New York Stock Exchange and also webcast “live,” Ford will explain how revenue, products and assets are assigned to each segment, and show recast financials for 2021 and 2022. (autoinformed.com: GM Raises 2022 Earnings, Offers 2023-25 Performance Goals)
“We have great flexibility to invest in the Ford+ growth plan and return capital to shareholders at the same time,” said Lawler. “Going forward, we intend to target distributions of 40% to 50% of free cash flow.”