Ford Q4 2023 earnings were headlined by a 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 in Q4 2022. Cash flow 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
| METRIC | UNIT | Q4 2023 | Q4 2022 | CHANGE | % CHANGE |
|---|---|---|---|---|---|
| GAAP METRICS | |||||
| REVENUE | BILLION USD | $46.0 | $44.0 | $+2.0 | +4.5% |
| NET INCOME | BILLION USD | -$0.5 | $1.3 | $-1.8 | -138.5% |
| NET INCOME MARGIN | PERCENT | -1.1 | 2.9% | -1.1 PPTS | N/A |
| EARNINGS PER SHARE (EPS) DILUTED | USD PER SHARE | -$0.13 | $0.32 | $-0.45 | -140.6% |
| CASH FLOW FROM OPERATING ACTIVITIES | BILLION USD | $2.5 | $1.2 | $+1.3 | +108.3% |
| NON GAAP METRICS | |||||
| ADJUSTED FREE CASH FLOW | BILLION USD | $2.0 | $2.4 | -$0.4 | -16.7% |
| EBIT-ADJUSTED | BILLION USD | $1.1 | $2.6 | $-1.5 | -57.7% |
| EBIT-ADJUSTED MARGIN | PERCENT | 2.3% | 5.8% | -3.5 PPTS | N/A |
| EPS DILUTED - ADJUSTED | USD | $0.29 | $0.51 | $-0.22 | -43.1% |
| DELIVERIES | MILLIONS OF VEHICLES | 1,152 | 1,147 | +6 | +4% |
| ROIC - ADJUSTED | PERCENT (TRAILING FOUR QTRS) | 13.9 | 11.2 | +2.7 PPTS | N/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 or 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
| METRIC | UNIT | Q4 2023 | CHANGE |
|---|---|---|---|
| FORD BLUE | |||
| WHOLESALES | THOUSANDS OF VEHICLES | 758 | 0% |
| REVENUE | BILLION USD | $26.2 | 0% |
| EBIT | MILLION USD | $813.0 | -$736 |
| EBIT-ADJUSTED MARGIN | PERCENT | 3.1% | -2.8 PPTS |
| FORD MODEL E | |||
| WHOLESALES | THOUSANDS OF VEHICLES | $34.0 | +14 PPTS |
| REVENUE | BILLION USD | $1.6 | 2% |
| EBIT | MILLION USD | -$1,570 | -$939 |
| EBIT-ADJUSTED MARGIN | PERCENT | -98.2% | -57.8 PPTS |
| FORD PRO | |||
| WHOLESALES | THOUSANDS OF VEHICLES | 361 | +1% |
| REVENUE | BILLION USD | $15.4 | +11% |
| EBIT | MILLION USD | $1,811 | +361 |
| EBIT-ADJUSTED MARGIN | PERCENT | 11.8% | +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 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
Aad yet UAW employees are getting $10K bonus on top of a significant raise.