Summary
Ford Motor Company reported a strong first quarter for 2023, demonstrating a significant turnaround from the prior year. Total revenues increased by 20% to $41.5 billion, driven by substantial growth in the Ford Blue and Ford Pro segments. The company achieved a net income of $1.76 billion, a substantial improvement from a net loss of $3.11 billion in the first quarter of 2022. This recovery was largely due to favorable pricing, improved volume driven by easing supply chain constraints, and the non-recurrence of significant mark-to-market losses on equity investments, such as Rivian, which heavily impacted the prior year. The company's strategic focus on its core automotive business appears to be yielding positive results, with Ford Blue and Ford Pro segments showing robust EBIT growth. However, the Ford Model e segment continues to incur significant losses, reflecting ongoing investment in electric vehicle technology and capacity expansion. Ford Credit also experienced a decline in earnings before taxes due to higher borrowing costs and normalized credit losses. Looking ahead, Ford reiterates its full-year guidance for Adjusted EBIT between $9 billion and $11 billion, and Adjusted Free Cash Flow of approximately $6 billion, indicating confidence in its ongoing recovery and strategic execution. Investors will closely monitor the performance of the Ford Model e segment and the company's ability to manage costs amidst persistent economic uncertainties and industry-wide incentive pressures.
Financial Highlights
51 data points| Revenue | $41.47B |
| Cost of Revenue | $34.67B |
| Gross Profit | $6.80B |
| SG&A Expenses | $2.51B |
| Operating Expenses | $39.36B |
| Operating Income | $2.11B |
| Net Income | $1.66B |
| EPS (Basic) | $0.44 |
| EPS (Diluted) | $0.44 |
| Shares Outstanding (Basic) | 3.99B |
| Shares Outstanding (Diluted) | 4.03B |
Key Highlights
- 1Total revenues surged by 20% year-over-year to $41.5 billion in Q1 2023, primarily driven by the Ford Blue and Ford Pro segments.
- 2Net income attributable to Ford Motor Company was $1.76 billion, a significant improvement from a net loss of $3.11 billion in Q1 2022.
- 3Adjusted EBIT increased by $1.1 billion to $3.38 billion, driven by improved performance in Ford Blue and Ford Pro, and a reduced loss in Ford Next.
- 4Ford Blue segment EBIT more than doubled to $2.6 billion, benefiting from strong volume, favorable mix, and net pricing, despite cost pressures.
- 5Ford Pro segment EBIT more than doubled to $1.37 billion, also driven by higher net pricing and volume, with the launch of the new Super Duty impacting performance.
- 6The Ford Model e segment reported a higher EBIT loss of $722 million, reflecting ongoing investments in EV technology and capacity, and higher engineering and spending-related expenses.
- 7Ford Credit's earnings before taxes decreased by $625 million to $303 million, primarily due to higher borrowing costs and a normalization of credit losses.