Summary
Ford Motor Company reported a significant increase in net income for the first half of 2023 compared to the same period in 2022, driven by a substantial reduction in "special items," particularly the non-recurrence of a large mark-to-market loss on its Rivian investment. Total revenues also saw a healthy increase, reflecting improved vehicle volumes and pricing across most segments. The company continues to invest heavily in its electric vehicle (EV) transition, as evidenced by the Ford Model e segment's ongoing substantial operating loss, which is a key focus for investors monitoring the company's long-term strategy. Liquidity remains strong, with substantial cash reserves and available credit lines. Ford Credit's performance, while showing a decline in earnings before taxes (EBT) year-over-year due to higher borrowing costs and normalizing credit losses, still contributes positively. The company has reaffirmed its full-year 2023 guidance, signaling confidence in its strategic initiatives despite ongoing macroeconomic uncertainties and industry-wide headwinds like inflationary pressures and EV pricing competition.
Financial Highlights
51 data points| Revenue | $44.95B |
| Cost of Revenue | $37.47B |
| Gross Profit | $7.48B |
| SG&A Expenses | $2.75B |
| Operating Expenses | $42.49B |
| Operating Income | $2.46B |
| Net Income | $2.02B |
| EPS (Basic) | $0.48 |
| EPS (Diluted) | $0.47 |
| Shares Outstanding (Basic) | 4.00B |
| Shares Outstanding (Diluted) | 4.04B |
Key Highlights
- 1Net income attributable to Ford Motor Company surged to $3.679 billion for the first half of 2023, a significant improvement from a loss of $2.443 billion in the prior year, largely due to a decrease in "special items" (especially the Rivian investment loss).
- 2Total revenues increased by 16% to $86.428 billion for the first half of 2023, driven by higher volumes and pricing across segments, particularly in Ford Pro and Ford Blue.
- 3Ford Pro segment's performance was strong, with income before taxes of $3.757 billion for the first half of 2023, more than doubling year-over-year, attributed to higher net pricing and volumes.
- 4Ford Model e segment continued to incur significant losses, with an income loss before taxes of $1.802 billion for the first half of 2023, indicating ongoing investment and pricing pressures in the EV market.
- 5Company Adjusted EBIT (a non-GAAP measure) increased to $7.165 billion for the first half of 2023, up from $6.048 billion in the prior year, demonstrating improved operational profitability outside of special items.
- 6Company Adjusted Free Cash Flow for the first half of 2023 was $3.612 billion, a slight increase from $3.039 billion in the prior year, reflecting continued positive cash generation.
- 7Ford Credit's EBT decreased to $693 million for the first half of 2023, down from $1.867 billion in the prior year, primarily due to higher borrowing costs and normalizing credit loss trends.