Late today Ford Motor (NYSE:F) posted 2023 Q2 Earnings of $3.8 billion (adjusted EBIT) with a net income of $1.9 billion. Ford claimed it was again America’s top-selling brand in the quarter as net sales increased more than 11% – and for the first six months of 2023. Worldwide, demand for Ford trucks, SUVs and commercial vans raised Q2 revenue by 12%, to $45 billion. Quarterly net income was $1.9 billion, not quite three times higher than in the year-ago period and a 4% margin. Adjusted earnings before interest and taxes worked out at 8.4% of revenue – once again a long way short of what Ford is promising as double digits. (AutoInformed: Ford Motor Q1 Sales, Profits, Cash Flow Up. But…; Ford CEO says China is the Main Competitor, Not GM)
“The shift to powerful digital experiences and breakthrough EVs is underway and going to be volatile, so being able to guide customers through and adapt to the pace of adoption are big advantages for us,” said Ford CEO Jim Farley. “Ford+ is making us more resilient, efficient and profitable, which you can see in Ford Pro’s breakout second-quarter revenue improvement (22%) and EBIT margin (15%),” Fairly said selectively. Ford’s electric business – Model e – is forecast to lose ~$4.5 billion during 2023. It lost $1.2 billion during Q2 or $40,000 a vehicle. Ford is in the process of completely revamping its product development to address this. **
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Ford CFO John Lawler reiterated that the company has ample resources to simultaneously fund disciplined investment in growth and return capital to shareholders – for the latter, targeting 40% to 50% of adjusted free cash flow. On July 13, Ford’s board of directors declared the latest regular dividend of 15 cents per share, payable Sept. 1 to shareholders of record at the close of business on July 25.
Hedged Outlook
Ford is lifting its guidance range for full-year 2023 consolidated adjusted EBIT to between$11 billion and $12 billion. The company is also raising its expectations for the full year adjusted free cash flow to between $6.5 billion and $7 billion, with capital expenditures of between $8 billion and $9 billion.
This guidance presumes:
- Headwinds – including global economic uncertainty and inflationary pressures, higher industry wide customer incentives and continued EV pricing pressure, increased warranty costs, lower past service pension income, exchange rates and costs associated with union contract negotiations.
“Like every Big Three automaker, Ford is thriving. These eye-popping numbers come on top of a decade of massive profits,” said Shawn fain president of the UAW. “The Big Three made a quarter-trillion dollars in North American profits over the last decade, but they denied UAW members our fair share. No Ford worker should be stuck in a lower-tier job, without the good pay and pension that generations of autoworkers fought for. No Ford worker should wonder if the Blue Oval battery plants opening across the country will start a race to the bottom that undermines standards for all autoworkers. Seeing the billions that Ford is making, we know they can and must make things right for our workers and our communities.”
- Tailwinds – include an improved supply chain, higher industry volumes, upside from the all-new Super Duty and lower commodity costs.
For its business units, Ford now expects full-year EBIT:
- Approaching $8 billion for Ford Pro, more than double in 2022, from significant year-over-year improvement in pricing and volume.
- Of about $8 billion from Ford Blue (traditional internal combustion engines) , with higher volumes and stronger mix more than offsetting any potential pricing headwinds.
- To be a loss of about $4.5 billion for Ford Model e, reflecting the pricing. environment, disciplined investments in new products and capacity, and other costs.
- Full-year EBT for Ford Credit is anticipated to be about $1.3 billion.
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** 1 August addition to original post: Ford Motor has now resumed production of the F-150 Lightning following a six-week shutdown to expand and retool the Rouge Electric Vehicle Center plant to triple manufacturing capacity of the electric truck. With the expansion, Ford will have ability to produce the F-150 Lightning at an annualized rate of 150,000 units by this fall.
Ford Motor Posts $3.8B Q2 Earnings on 12% Revenue Increase
Late today Ford Motor (NYSE:F) posted 2023 Q2 Earnings of $3.8 billion (adjusted EBIT) with a net income of $1.9 billion. Ford claimed it was again America’s top-selling brand in the quarter as net sales increased more than 11% – and for the first six months of 2023. Worldwide, demand for Ford trucks, SUVs and commercial vans raised Q2 revenue by 12%, to $45 billion. Quarterly net income was $1.9 billion, not quite three times higher than in the year-ago period and a 4% margin. Adjusted earnings before interest and taxes worked out at 8.4% of revenue – once again a long way short of what Ford is promising as double digits. (AutoInformed: Ford Motor Q1 Sales, Profits, Cash Flow Up. But…; Ford CEO says China is the Main Competitor, Not GM)
“The shift to powerful digital experiences and breakthrough EVs is underway and going to be volatile, so being able to guide customers through and adapt to the pace of adoption are big advantages for us,” said Ford CEO Jim Farley. “Ford+ is making us more resilient, efficient and profitable, which you can see in Ford Pro’s breakout second-quarter revenue improvement (22%) and EBIT margin (15%),” Fairly said selectively. Ford’s electric business – Model e – is forecast to lose ~$4.5 billion during 2023. It lost $1.2 billion during Q2 or $40,000 a vehicle. Ford is in the process of completely revamping its product development to address this. **
Click for more profits and loses.
Ford CFO John Lawler reiterated that the company has ample resources to simultaneously fund disciplined investment in growth and return capital to shareholders – for the latter, targeting 40% to 50% of adjusted free cash flow. On July 13, Ford’s board of directors declared the latest regular dividend of 15 cents per share, payable Sept. 1 to shareholders of record at the close of business on July 25.
Hedged Outlook
Ford is lifting its guidance range for full-year 2023 consolidated adjusted EBIT to between$11 billion and $12 billion. The company is also raising its expectations for the full year adjusted free cash flow to between $6.5 billion and $7 billion, with capital expenditures of between $8 billion and $9 billion.
This guidance presumes:
“Like every Big Three automaker, Ford is thriving. These eye-popping numbers come on top of a decade of massive profits,” said Shawn fain president of the UAW. “The Big Three made a quarter-trillion dollars in North American profits over the last decade, but they denied UAW members our fair share. No Ford worker should be stuck in a lower-tier job, without the good pay and pension that generations of autoworkers fought for. No Ford worker should wonder if the Blue Oval battery plants opening across the country will start a race to the bottom that undermines standards for all autoworkers. Seeing the billions that Ford is making, we know they can and must make things right for our workers and our communities.”
For its business units, Ford now expects full-year EBIT:
AutoInformed on
** 1 August addition to original post: Ford Motor has now resumed production of the F-150 Lightning following a six-week shutdown to expand and retool the Rouge Electric Vehicle Center plant to triple manufacturing capacity of the electric truck. With the expansion, Ford will have ability to produce the F-150 Lightning at an annualized rate of 150,000 units by this fall.