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Ford Q4 2023 Earnings: $0.5 Billion Loss On $46 Billion In Revenue

Ford Q4 2023 earnings were headlined by net loss of $526 million on $46 billion in revenue. Compared to the fourth quarter of 2022, the results represent a 138.5 percent decrease in net income and a 4.5 percent increase in revenue.

The performance represents a net income margin of -1.1 percent, down 4 percentage points from 2.9 percent in Q4 2022. Earnings per share (EPS) diluted was -$0.13, down $0.45 from $0.32 over Q4 2022. Cash from from operating activities was $2.5 billion, up $1.3 billion or 108 percent from the $1.2 billion in Q4 2022.

FoMoCo Q4 2023 Earnings Summary

METRICUNITQ4 2023Q4 2022CHANGE% CHANGE
GAAP METRICS
REVENUEBILLION USD$46.0$44.0$+2.0+4.5%
NET INCOMEBILLION USD-$0.5$1.3$-1.8-138.5%
NET INCOME MARGINPERCENT-1.12.9%-1.1 PPTSN/A
EARNINGS PER SHARE (EPS) DILUTEDUSD PER SHARE-$0.13$0.32$-0.45-140.6%
CASH FLOW FROM OPERATING ACTIVITIESBILLION USD$2.5$1.2$+1.3+108.3%
NON GAAP METRICS
ADJUSTED FREE CASH FLOWBILLION USD$2.0$2.4-$0.4-16.7%
EBIT-ADJUSTEDBILLION USD$1.1$2.6$-1.5-57.7%
EBIT-ADJUSTED MARGINPERCENT2.3%5.8%-3.5 PPTSN/A
EPS DILUTED - ADJUSTEDUSD$0.29$0.51$-0.22-43.1%
DELIVERIESMILLIONS OF VEHICLES1,1521,147+6+4%
ROIC - ADJUSTEDPERCENT (TRAILING FOUR QTRS)13.911.2+2.7 PPTSN/A

The loss is attributable to a $1.7 billion pretax, non-cash accounting loss related to the remeasurement of pension and other postretirement employee benefits plans.

Earnings

Earnings Before Interest and Taxes, adjusted (EBIT-adjusted) was $1.1 billion, (as expected) down 1.5 billion of 57.7 percent compared to the $2.6 billion during the year-ago quarter, on to an EBIT-adjusted margin of 2.3 percent, down 3.5 percentage points from the 5.8 percent in Q4 2022.

Diluted earnings per share – adjusted (EPS-adjusted) was $0.29, down $0.22 or 43.1 percent.

Global Sales

Ford Motor Company recorded 1,152 million vehicle deliveries globally during the quarter, up 4 percent or around 6K units year-over-year compared to the 1,147 million deliveries during the same time frame a year ago.

FoMoCo Q4 2023 Divisional Results

METRICUNITQ4 2023CHANGE
FORD BLUE
WHOLESALESTHOUSANDS OF VEHICLES7580%
REVENUEBILLION USD$26.20%
EBITMILLION USD$813.0-$736
EBIT-ADJUSTED MARGINPERCENT3.1%-2.8 PPTS
FORD MODEL E
WHOLESALESTHOUSANDS OF VEHICLES$34.0+14 PPTS
REVENUEBILLION USD$1.62%
EBITMILLION USD-$1,570-$939
EBIT-ADJUSTED MARGINPERCENT-98.2%-57.8 PPTS
FORD PRO
WHOLESALESTHOUSANDS OF VEHICLES361+1%
REVENUEBILLION USD$15.4+11%
EBITMILLION USD$1,811+361
EBIT-ADJUSTED MARGINPERCENT11.8%+1.3 PPTS

Ford Blue

Ford Blue, the company’s gasoline and hybrid vehicle business, reported:

  • 758K vehicle deliveries, flat year-over-year
  • $26.2 billion in revenue, flat year-over-year
  • $813 million in Earnings Before Interest and Tax (EBIT), down $736 million over a year ago, on to an EBIT-adjusted margin of 3.1 percent, down 2.8 percentage points

Ford Mustang Mach-E GT Performance Edition Argentina - Exterior 001 - Front Three Quarters

Ford Model E

Ford Model E, the automaker’s emerging electric vehicle division, posted:

  • 34K vehicle deliveries, up 14 percent year-over-year
  • $1.6 billion in revenue, up 2 percent year-over-year
  • -$1.57 billion in Earnings Before Interest and Tax (EBIT), a loss that’s $939 million higher than during the same time frame a year ago, on to an EBIT-adjusted margin of -98.2 percent, down 57.8 percentage points

Ford Pro

Ford Pro, the division focused on commercial customers, posted:

  • 361K vehicle deliveries, up 1 percent year-over-year
  • $15.4 billion in revenue, up 11 percent year-over-year
  • -$1,811 million in Earnings Before Interest and Tax (EBIT), up $361 million over a year ago, on to an EBIT-adjusted margin of 11.8 percent, up 1.3 percentage points

Guidance

Ford provided the following guidance ranges for 2024:

  • EBIT-adjusted of $10 billion – $12 billion
  • Adjusted free cash flow of $6 billion to $7 billion
  • Capital expenditures of $8 billion to $9.5 billion
  • Flat total costs on $2 billion in industrial cost improvements, offset by higher expenses for labor and major product refresh actions
  • Ford Pro EBIT of at least $8 billion to $9 billion
  • Ford Blue EBIT of about $7 billion to $7.5 billion
  • Ford Model E loss of $5.0 billion to $5.5 billion
  • Ford Credit Earnings Before Interest and Taxes (EBIT) of about $1.5 billion

This guidance assumes flat to modestly higher full-year U.S. industry volume with overall lower vehicle pricing. Upsides include benefit pricing and mix from 12 months of sales of the all-new Super Duty that Ford Pro introduced during 2023.

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Comment

  1. J.Jacobson

    Aad yet UAW employees are getting $10K bonus on top of a significant raise.

    Reply

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