Ford Motor Co. manufactures automobiles under its Ford and Lincoln brands. In March 2022, the company announced that it will run its combustion engine business, Ford Blue, and its BEV business, Ford Model e, as separate businesses but still all under Ford Motor. The company has nearly 13% market share in the United States, about 11% share in the U.K., and under 2% share in China including unconsolidated affiliates. Sales in the U.S. made up about 66% of 2023 total company revenue. Ford has about 177,000 employees, including about 59,000 UAW employees, and is based in Dearborn, Michigan.
Performance Overview
Ford Motor Co (F, Financial) reported second-quarter revenue of $47.8 billion, surpassing the analyst estimate of $44.02 billion. However, the company’s earnings per share (EPS) came in at $0.46, falling short of the estimated $0.68. The net income for the quarter was $1.8 billion, slightly down from $1.9 billion in the same period last year.
Financial Achievements and Challenges
Ford Pro, the company’s commercial vehicle segment, posted a strong quarterly EBIT of $2.6 billion, representing a 15% margin on a 9% revenue gain. This segment's performance was driven by high demand for Super Duty trucks and Transit vans. However, the overall profitability was impacted by increased warranty reserves, which affected the EBIT margin, reducing it to 5.8% from 8.4% in the previous year.
“Ford+ is on track, our underlying quality is improving, and Ford Pro is showing the huge upside we’ve got in all our businesses,” said President and CEO Jim Farley.
Segment Performance
| Segment | Q2 2024 Revenue ($B) | Q2 2024 EBIT ($M) | Q2 2024 EBIT Margin (%) |
|---|---|---|---|
| Ford Blue | 26.7 | 1,171 | 4.4 |
| Ford Model e | 1.1 | (1,143) | (99.5) |
| Ford Pro | 17.0 | 2,564 | 15.1 |
Income Statement Highlights
Ford's total revenue for the second quarter was $47.8 billion, up from $45.0 billion in the same period last year. The cost of sales increased to $40.5 billion from $37.5 billion, reflecting higher production costs. Operating income stood at $1.9 billion, down from $2.5 billion in the previous year. The diluted EPS was $0.46, compared to $0.47 in Q2 2023.
Balance Sheet and Cash Flow
As of June 30, 2024, Ford reported cash and cash equivalents of $20.0 billion, down from $24.9 billion at the end of 2023. The company’s total assets increased slightly to $276.6 billion from $273.3 billion. Operating cash flow for the second quarter was $5.5 billion, and adjusted free cash flow was $3.2 billion.
Analysis and Outlook
Ford Motor Co (F, Financial) continues to show resilience in its core business segments, particularly Ford Pro, which has demonstrated robust growth. However, the increased warranty reserves and ongoing challenges in the electric vehicle segment, Ford Model e, have impacted overall profitability. The company remains confident in its full-year 2024 guidance, maintaining its adjusted EBIT outlook at $10 billion to $12 billion and raising its adjusted free cash flow outlook to between $7.5 billion and $8.5 billion.
“We still have lots of work ahead of us to raise quality and reduce costs and complexity, but the team is committed and we’re heading in the right direction,” said Ford Vice Chair and CFO John Lawler.
For more detailed financial information, readers can access the full 8-K filing.
Explore the complete 8-K earnings release (here) from Ford Motor Co for further details.
