Summary
Ford Motor Company's (F) third quarter 2023 results show a significant turnaround from the previous year, with net income attributable to Ford Motor Company reaching $1.2 billion, a substantial increase from a net loss of $827 million in the prior year's third quarter. This improvement was driven by higher revenues across all segments, particularly in Ford Pro and Ford Blue, and the non-recurrence of significant impairment charges related to investments in Argo AI and Rivian. Adjusted EBIT also saw a healthy increase, reaching $2.2 billion. Despite the positive top-line and profitability growth, the company is facing headwinds. The ongoing UAW strike, with a tentative agreement reached but not yet ratified, has already impacted production and is expected to result in a significant increase in labor costs over the contract's life. Furthermore, lower-than-anticipated electric vehicle (EV) adoption rates are leading Ford to reconsider its EV spending and production plans, with potential for further charges related to EV suppliers. The company withdrew its full-year 2023 guidance due to these uncertainties, highlighting the volatile operating environment.
Financial Highlights
51 data points| Revenue | $43.80B |
| Cost of Revenue | $37.55B |
| Gross Profit | $6.25B |
| SG&A Expenses | $2.67B |
| Operating Expenses | $42.67B |
| Operating Income | $1.13B |
| Net Income | $1.20B |
| EPS (Basic) | $0.30 |
| EPS (Diluted) | $0.30 |
| Shares Outstanding (Basic) | 4.00B |
| Shares Outstanding (Diluted) | 4.05B |
Key Highlights
- 1Net income attributable to Ford Motor Company was $1.2 billion for Q3 2023, a significant improvement from a net loss of $827 million in Q3 2022.
- 2Total revenues increased by 11% to $43.8 billion in Q3 2023, driven by strong performance in Ford Pro and Ford Blue segments.
- 3Adjusted EBIT rose to $2.2 billion in Q3 2023, up from $1.8 billion in Q3 2022, indicating improved operational profitability.
- 4The company experienced a $717 million increase in its Ford Model e segment EBIT loss, primarily due to higher material costs, lower pricing, and increased warranty expenses.
- 5Ford withdrew its full-year 2023 guidance due to significant uncertainties stemming from the UAW strike and the evolving EV market.
- 6The UAW strike has impacted production and is estimated to reduce full-year 2023 adjusted EBIT by approximately $1.3 billion, with a significant increase in expected labor costs over the contract's life.
- 7Ford is re-evaluating its EV strategy and spending due to lower-than-anticipated industry adoption rates, potentially leading to further charges from EV-related suppliers.