CFO John Lawler said that Ford’s robust cash flow and disciplined capital allocation enable vital investments in Ford+ while also returning value to shareholders – targeting distributions of 40% to 50% of adjusted free cash flow. Ford declared a first-quarter regular dividend of 15 cents per share and a supplemental dividend of 18 cents per share. The dividends are payable March 1 to shareholders of record at the close of business on Feb. 16. Lawler said that Ford will improve capital efficiency by both selectively reducing investments and raising the bar on expected returns for initiatives that the company greenlights.

Profitability and cash flow from outside North America in 2023 represented a positive change from a combined loss of about~$2 billion in 2020. The improvement in those markets Ford claimed reflected benefits from lower capital approaches in China and elsewhere, and continued strength of the Ranger mid-size pickup and Everest SUV.

Operating cash flow was $14.9 billion for all of 2023. Free cash flow (FCF) of $6.8 billion was better than the company’s outlook of $5.0 billion to $5.5 billion. Ford’s balance sheet remains strong, with nearly $29 billion in cash and more than $46 billion in liquidity at the end of the year. The outlook for full-year 2024 includes adjusted EBIT of $10 billion to $12 billion, adjusted FCF of $6 billion to $7 billion, and capital spending of $8 billion to $9.5 billion