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

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

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

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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