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Ford Motor (NYSE: F) late yesterday posted weak 2024 Q1 operating results of $42.8 billion in revenue (+1.3B YoY), net income of $1.3 billion (-1.1%), and adjusted EBIT of $2.8 billion (-6%) as global sales dropped 11,000 vehicles to 1,045,000. Ford nonetheless declared a second-quarter regular dividend of 15 cents per share, payable 3 June to shareholders of record at the close of business on 8 May 2024. (AutoInformed: GM Posts $3 Billion in Q1 Earnings. Raises 2024 Guidance)
“Ford’s first-quarter 2024 operating results provided more evidence that its segmented, customer-centered strategy is delivering growth and profitability, sharpening capital efficiency and fortifying business durability. Customers want vehicles that they’re passionate about, choices in how they’re powered, quality that’s constantly getting better and great value,“ claimed President and CEO Jim Farley.
In the electric vehicle segment, Ford Model e, the Dearborn based automaker lost $1.32 billion as sales dropped -20% to 10,000 units as EV demand softened, which is an industry-wide trend. However, Ford’s lack of hybrid offerings as a hedge is a significant weak spot. It will not have hybrid versions of every vehicle in its North America portfolio until 2030. Overall, hybrid sales in Q1 were were 38,421, up 42% an all-time record.* (AutoInformed: EV Grumblings – Ford Cuts 2024 F-150 Lightning Prices)
As are ongoing quality problems, which affect electrified offerings as well as traditional ones. Here’s the SEC required warning: “Ford’s vehicles could be affected by defects that result in recall campaigns, increased warranty costs, or delays in new model launches, and the time it takes to improve the quality of our vehicles and services could continue to have an adverse effect on our business.” Last year, Ford paid $1.9 billion in warranty costs, according to the company’s 10-K filing. Ford in 2023 had an industry-leading 56 recalls involving 5.7 million vehicles. (** see below for some notable recent recalls)
Full-Year 2024 Forecast
The Ford full-year adjusted EBIT guidance range is unchanged, with the company tracking to the higher end of the $10 billion to $12 billion range. The company now expects to generate adjusted free cash flow of $6.5 billion to $7.5 billion – up from the initial outlook of $6 billion to $7 billion provided earlier this year.
Ford is anticipating capital expenditures for the year of $8 billion to $9 billion – narrower than the $8 billion to $9.5 billion originally estimated and perhaps at the lower end of the range. The update “recent actions to match investments in support of electric vehicles to revised expectations for the pace of EV adoption by customers.”
Ford remains on plan to achieve $2 billion in cost reductions in areas such as materials, freight and manufacturing.
The segment-level EBIT outlook remains:
- $8 billion to $9 billion for Ford Pro.
- $7 billion to$7.5 billion for Ford Blue.
- A loss of $5.0 billion to $5.5 billion for Ford Model e.
- ~$1.5 billion for Ford Credit Earnings before taxes.
*Sales of Ford Blue’s hybrid vehicles were up 36%, for projected full-year 2024 hybrid sales growth of 40%. The compact Ford Maverick was America’s No. 1-selling hybrid truck in Q1. Hybrid versions of the new F-150 full-size pickup are said to be on the way to customers.
**AutoInformed on
- Ford Recalls Explorer SUVs for Loss of Power, Rollaways
- Ford Recalls F-150s, Mustangs for Software, Hardware Defects
- Ford Recalls Maverick Pickups for Defective Software
- Ford Recalls EcoSport and Focus Models for Engine Seizures
- Ford Recalls 1.88 Million Explorer SUVs for Trim Detachment
- Ford Recalls 2023 Explorers for Loose Steering Knuckles
- Ford Recalls Expeditions, Navigators for Bad Seat Belts
Last year, Ford Motor paid $1.9 billion in warranty costs, according to the company’s 10-K filing. Ford in 2023 had an industry-leading 56 recalls involving 5.7 million vehicles.