01—Abstract
Summary
Summary of the 10-Q filed April 25, 2024. Cited figures are marked; the original filing is the authoritative source.
Ford Motor Company reported first-quarter 2024 results showing a decrease in net income attributable to Ford Motor Company to $1.332 billiona from $1.757 billion in the prior year period.
Diluted EPS also fell to $0.33b from $0.44. Total revenues increased slightly to $42.777 billion from $41.474 billion year-over-year. The company experienced a significant decline in operating income, primarily driven by substantial losses in the Ford Model e segment, which incurred a loss of $1.320 billion.
This segment's performance was impacted by lower net pricing and increased costs related to the EV transition, despite favorable battery raw material costs. Conversely, the Ford Pro segment demonstrated robust growth, with EBIT increasing to $3.008 billionc from $1.366 billion, driven by higher volumes and favorable mix, particularly from the new Super Duty truck launch. Despite the challenges in the EV segment, Ford maintained strong liquidity with $25.1 billion in Company cash and $42.6 billion in overall liquidity at the end of the quarter.
The company is navigating the evolving electric vehicle market by adjusting its spending and production plans to align with adoption rates. Full-year 2024 guidance anticipates adjusted EBIT between $10 billiond and $12 billion, and adjusted free cash flow between $6.5 billion and $7.5 billion, indicating management's expectation for a stronger second half of the year. Investors should monitor the execution of the Ford+ plan and the profitability trajectory of the Ford Model e segment.
02—Key points
Key Highlights
- Total revenues increased by 3% year-over-year to $42.777 billion.
- Net income attributable to Ford Motor Company decreased by 24% to $1.332 billion.
- Diluted Earnings Per Share (EPS) declined to $0.33 from $0.44 in the prior year.
- Ford Model e segment reported a significant EBIT loss of $1.320 billion, reflecting challenges in the EV market.
- Ford Pro segment showed strong performance with EBIT of $3.008 billion, up from $1.366 billion.
- Company maintained strong liquidity with $25.1 billion in cash and $42.6 billion in overall liquidity as of March 31, 2024.
- Full-year 2024 guidance projects adjusted EBIT of $10 billion to $12 billion and adjusted free cash flow of $6.5 billion to $7.5 billion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2024, Ford Motor Co kept $0.03.
- Revenue$42.78B100.0%
- Cost of revenue−$36.48B85.3%
- Gross profit$6.30B14.7%
- Operating costs−$5.08B11.9%
- Operating income$1.23B2.9%
- Interest, other & tax$109.0M0.3%
- Net income$1.33B3.1%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed April 25, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $42.78B$41.47B | +3.1% |
| Cost of Revenue | $36.48B$34.67B | +5.2% |
| Gross Profit | $6.30B$6.80B | −7.4% |
| SG&A Expenses | $2.38B$2.51B | −5.2% |
| Operating Expenses | $41.55B$39.36B | +5.6% |
| Operating Income | $1.23B$2.11B | −42.0% |
| Net Income | $1.33B$1.66B | −19.8% |
| EPS (Basic) | $0.33$0.44 | −25.0% |
| EPS (Diluted) | $0.33$0.44 | −25.0% |
| Shares Outstanding (Basic) | 3.98B3.99B | −0.3% |
| Shares Outstanding (Diluted) | 4.02B4.03B | −0.1% |
05—Questions
Frequently Asked Questions
What was Ford's overall financial performance in the first quarter of 2024?
Ford Motor Company reported a mixed financial performance in the first quarter of 2024. Total revenues saw a slight increase to $42.777 billion compared to $41.474 billion in the prior year. However, net income attributable to Ford decreased significantly to $1.332 billion from $1.757 billion, resulting in a lower diluted EPS of $0.33 compared to $0.44. This was largely driven by substantial losses in the Ford Model e segment, which were partially offset by strong performance in the Ford Pro segment.
What are the key drivers behind the performance of Ford's different segments?
The Ford Pro segment was a strong performer, with EBIT increasing to $3.008 billion due to higher wholesales, favorable mix (driven by the new Super Duty truck), and increased net pricing. In contrast, the Ford Model e segment experienced a significant EBIT loss of $1.320 billion. This was primarily due to lower net pricing, higher costs associated with EV investments and new model launches, and an increase in revenue accrual adjustments related to dealer inventory. The Ford Blue segment also saw a decline in EBIT to $905 million, impacted by lower wholesales due to new model launches and the cessation of certain product lines.
How is Ford managing its investments and outlook in the electric vehicle (EV) market?
Ford is adjusting its EV strategy in response to lower-than-anticipated industry-wide adoption rates and near-term pricing pressures. The company is re-evaluating its spending, production, and launch plans. The Ford Model e segment's ongoing losses are a key area of focus, with an expected full-year EBIT loss of $5 billion to $5.5 billion. Ford aims to balance investments in EVs with market demand, utilizing credits and potentially modifying product offerings to ensure regulatory compliance and profitability.
What is Ford's liquidity position and what are its capital resources like?
Ford maintains a strong liquidity position, with $25.1 billion in Company cash (excluding Ford Credit) and $42.6 billion in overall liquidity as of March 31, 2024. The company targets a minimum Company cash balance of $20 billion plus significant additional liquidity. Ford Credit also has robust access to capital markets, with $27.0 billion in net liquidity available for use and a diverse funding structure. The company plans to fund its material cash requirements through its liquidity and operating cash flows.
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