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10-QPeriod: Q2 FY2022

FORD MOTOR CO Quarterly Report for Q2 Ended Jun 30, 2022

Filed July 28, 2022For Securities:FF-PCF-PDF-PB

Summary

Ford Motor Company's second quarter 2022 results show a significant shift, with net income attributable to Ford improving to $667 million from a net loss of $2,443 million in the first half of 2021, largely influenced by a substantial loss on its Rivian investment. Total revenues for the first half of 2022 increased by 19% year-over-year to $74.7 billion, driven by strong performance in the Automotive segment, which saw revenues climb 21% to $70.0 billion, benefiting from improved wholesale volumes and pricing. Despite revenue growth, the company reported a net loss of $2,443 million for the first half of 2022, primarily due to a significant $7.9 billion loss on its Rivian investment and other special items. However, excluding these special items, Ford's adjusted EBIT showed robust growth, reaching $6.0 billion for the first half of 2022 compared to $4.9 billion in the prior year. The company maintained a solid liquidity position with $28.7 billion in Company cash at the end of June 2022, underscoring its ability to navigate ongoing industry challenges.

Financial Statements
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Key Highlights

  • 1Total revenues for the first half of 2022 increased 19% to $74.7 billion, driven by a 21% surge in Automotive segment revenue to $70.0 billion.
  • 2Net income attributable to Ford Motor Company for the first half was a loss of $2.44 billion, heavily impacted by a $7.9 billion pre-tax loss on the Rivian investment.
  • 3Adjusted EBIT for the first half of 2022 was $6.05 billion, up from $4.97 billion in the prior year, indicating strong operational performance excluding special items.
  • 4Automotive segment EBIT was significantly higher at $5.21 billion for the first half of 2022, a substantial increase from $3.30 billion in the prior year, driven by North America.
  • 5Ford Credit's EBT for the first half decreased to $1.87 billion from $2.59 billion, attributed to lower lease residual gains and unfavorable financing margin changes.
  • 6Company cash stood at $28.7 billion at June 30, 2022, providing a strong liquidity buffer. The company reiterates its target of maintaining Company cash at or above $20 billion.
  • 7The company reaffirmed its 2022 guidance for Adjusted EBIT of $11.5 billion to $12.5 billion and Adjusted Free Cash Flow of $5.5 billion to $6.5 billion.

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