Summary
Ford Motor Company reported a net loss of $1,981 million for the year ended December 31, 2022, a significant shift from the net income of $17,937 million in 2021. This change was largely driven by "special items," which included a substantial $7.4 billion mark-to-market loss on its Rivian investment and a $2.7 billion impairment of its Argo AI investment. Excluding these special items, Ford reported adjusted EBIT of $10,415 million and adjusted diluted earnings per share of $1.88, indicating continued operational strength despite significant one-off charges. The automotive segment saw revenue increase by 18% to $148,980 million, with EBIT rising to $9,692 million, a 32% increase year-over-year. This growth was primarily fueled by higher net pricing and increased wholesales, particularly in North America, which benefited from improved production and the full-year impact of new models like the Bronco and Maverick. Despite these operational gains, the company faced headwinds from inflationary pressures on materials, commodities, and freight, as well as increased structural costs related to strategic investments.
Financial Highlights
55 data points| Revenue | $158.06B |
| Cost of Revenue | $134.40B |
| Gross Profit | $23.66B |
| R&D Expenses | $7.80B |
| SG&A Expenses | $10.89B |
| Operating Expenses | $151.78B |
| Operating Income | $6.28B |
| Interest Expense | $4.59B |
| Net Income | -$1.98B |
| EPS (Basic) | $-0.49 |
| EPS (Diluted) | $-0.49 |
| Shares Outstanding (Basic) | 4.01B |
| Shares Outstanding (Diluted) | 4.01B |
Key Highlights
- 1Ford reported a net loss of $1,981 million for 2022, a significant decline from a net income of $17,937 million in 2021, primarily due to special items like Rivian investment losses and Argo AI impairment.
- 2Adjusted EBIT was $10,415 million, and adjusted diluted EPS was $1.88, indicating underlying operational profitability.
- 3Automotive segment revenue increased by 18% to $148,980 million, with EBIT growing 32% to $9,692 million, driven by higher net pricing and volumes.
- 4North America remained the strongest performing region, with EBIT increasing to $9,176 million, up 24% from the prior year, supported by improved production and new model sales.
- 5Ford Credit's EBT decreased by $2,060 million to $2,657 million, impacted by lower lease residuals, increased credit losses, and reduced financing margins.
- 6The company declared both regular and supplemental dividends in February 2023, demonstrating a commitment to shareholder returns.
- 7Ford is strategically investing in its "Ford+" plan, focusing on electrification and software, while managing risks associated with supply chain disruptions and macroeconomic volatility.