Ford Q1 Earnings Top Expectations

[rmc523]

Ford Q1 earnings top expectations, sees full-year profit 'tracking to high-end' - Autoblog

 

For the quarter, Ford reported revenue of $42.8 billion, beating estimates of $40.04 billion, and up 3% compared to a year ago. Ford posted adjusted earnings per share of $0.63 topping forecasts of $0.42, with adjusted EBIT (earnings before interest and taxes) coming in at $2.8 billion, compared to estimates of $2.54 billion. Ford’s results were better than those in Q4, when it was dealing with the lingering effects of the United Auto Workers (UAW) strike.

Ford said full-year adjusted EBIT was "tracking to high end of $10 billion to $12 billion," though it raised its adjusted FCF target raised to $6.5 billion to $7.5 billion, with CAPEX guidance tightened to $8 billion to $9 billion. Previously had projected adjusted EBIT of $10 billion to $12 billion, adjusted free cash flow of $6 billion to $7 billion, and capital expenditures of $8 billion to $9.5 billion.

 

Here's the breakdown for Q1: 

• Ford Blue: $21.8 billion in revenue, EBIT of $905 million

• Model e: $100 million in revenue, EBIT loss of $1.32 billion

• Ford Pro: $18.0 billion in revenue, EBIT of $3.01 billion

[akirby]

Wow - almost a 17% margin for Ford Pro.  How do they break out vehicle sales between pro and blue?  Is Pro fleet only?

[Flying68]

44 minutes ago, akirby said:

Wow - almost a 17% margin for Ford Pro.  How do they break out vehicle sales between pro and blue?  Is Pro fleet only?

I think so, because they also include the e-Transit, Lightning, and Mach-e fleet sales in the Pro unit.

[DeluxeStang]

Promising results, but I really hope Ford is able to turn model e around in the coming years. They say their newer products will be almost instantly profitable. But I still recall interviews from Ford's head of their EV program when the mach-e was first launched how it would be profitable almost on day one. 

I'm curious to see those affordable EVs, hopefully they impress.

[akirby]

6 minutes ago, DeluxeStang said:

Promising results, but I really hope Ford is able to turn model e around in the coming years. They say their newer products will be almost instantly profitable. But I still recall interviews from Ford's head of their EV program when the mach-e was first launched how it would be profitable almost on day one. 

I'm curious to see those affordable EVs, hopefully they impress.

Don’t confuse gross profit with net profit.   Every person on that 100 person skunkworks team plus the entire T3 design, engineering and testing team plus all the folks working on next gen batteries and platforms and future vehicles are an expense without a revenue stream.  
 

You're looking at a division that is staffed for and working on 8-10 vehicles (more counting Europe) but only selling 3 and developing new platforms, technologies and processes and building new plants (construction is capital but there is still a lot of expense).

 

All of those costs go against net profit and it’s virtually impossible to turn a net profit more new EVs are on the street generating revenue and profits.

 

[mackinaw]

1 hour ago, akirby said:

Wow - almost a 17% margin for Ford Pro.  How do they break out vehicle sales between pro and blue?  Is Pro fleet only?

 

From the Detroit News: 

 

"Meanwhile, Ford Pro, the commercial vehicle business, was the shining star of the report. It posted more than $3 billion in operating income, up 120% from last year, and a 16.7% operating margin. Super Duty sales drove the increase, according to the automaker. Software services also represented 13% of the earnings, nearing the goal of 20%."

 

https://www.detroitnews.com/story/business/autos/ford/2024/04/24/ford-first-quarter-earnings-profits-fall-ford-blue-f-150-ramp-up-model-e-ford-pro/73418005007/