Ford Motor 2023 Q3 Net income $1.2 Billion

Ken Zino of AutoInformed.com on Ford Motor Q3 Net income $1.2 Billion

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Ford Motor Company (NYSE: F) posted today Q3 revenue of $44 billion, up 11% from Q3 2022 on flat vehicle wholesales. Net income of $1.2 billion reversed a year-ago net loss of $827 million, which included a $2.7 billion non-cash, pretax impairment on Ford’s losing investment in Argo AI. Adjusted earnings before interest and taxes (EBIT), in Q3 increased to $2.2 billion.

“I’m very optimistic about the reality we’re creating with Ford+,” said President and CEO Jim Farley. “We’re building a more dynamic, highly talented and customer-focused company at the intersection of great vehicles, iconic brands, innovative software and high-value services.

Ken Zino of AutoInformed.com on Ford Motor Q3 Net income $1.2 Billion

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“We’re also radically changing how we work with a series of actions that put the right people with the right capabilities in the right places across the organization, so that our promise isn’t masked by cost and quality issues,” Farley claimed, echoing past CEOs going back three decades or more.

Ford revoked its 2023 earnings guidance with ratification of a tentative UAW labor contract pending.* Once again Ford Model e lost money – $1.3 billion on electric vehicles even though it reported 44% higher shipments of electric vehicles, and 26% revenue growth. This apparently ongoing operating loss was exacerbated by EV pricing pressure (Tesla price cuts), which AutoInformed thinks will continue.

Ken Zino of AutoInformed.com on Ford Motor Q3 Net income $1.2 Billion

Thus the traditional business goes…

Ford posted third-quarter U.S. sales increases in its gas, hybrid and electric vehicle lines; continued the lead of F-Series as America’s No. 1 truck, now in the 47th straight year; and was the top-selling brand in the United States through the first nine months of 2023.

Cash flow from operations was $4.6 billion in Q3 and $12.4 billion through the first nine months of 2023. Adjusted free cash flow for the same periods was $1.2 billion and $4.8 billion, respectively.

Ford’s balance sheet shows more than $29 billion in cash and $51 billion in liquidity at the end of Q3. That included a $4 billion contingent liquidity facility (credit line) that the company secured in August in anticipation of what it called business uncertainties.

In its latest attempt to address dreadful quality and cost issues, Ford last week completed a sequence of organizational changes in support of Ford+, creating an end-to-end global industrial system under, Kumar Galhotra (previously head of Ford Blue, the old internal combustion engine business) who was named chief operating officer.

Ford Credit Q3 earnings before taxes were $358 million, down from a year ago because of lower lease residuals and financing margin, along with a non-recurrence of gains in derivative market valuations.

*Full-Year 2023 Guidance

Through the third quarter, Ford earned $9.4 billion in adjusted EBIT toward the full-year range of $11 billion to $12 billion it affirmed in late July. Based on that and strong demand for Ford’s products, CFO John Lawler said that the company had been poised to deliver profitability within that range. However, given effects of the UAW strike and with ratification of the tentative agreement with the union that was announced Wednesday night pending, Ford withdrew its guidance for full-year 2023 operating results. Ford plans to report fourth-quarter and full-year 2023 financial results on Thursday 1 February 2024.

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