01—Abstract
Summary
Summary of the 10-Q filed July 25, 2024. Cited figures are marked; the original filing is the authoritative source.
Ford Motor Company reported a mixed financial performance for the second quarter and first half of 2024.
Total revenues saw an increase year-over-year, driven by higher sales in the Ford Pro segment and some recovery in Ford Blue. However, net income and adjusted EBIT declined due to significant cost pressures, particularly in the Ford Blue segment, and continued losses in the Ford Model e segment. The company is navigating a challenging electric vehicle market characterized by slower-than-anticipated adoption and pricing pressures, leading to a projected substantial loss for Ford Model e in 2024.
Conversely, the Ford Pro segment continues to demonstrate robust growth and profitability. Ford Credit also reported increased net receivables and solid EBT, though with a slightly higher loss-to-receivables ratio and lower auction values. The company is actively managing its costs and investments, particularly in its EV strategy, while maintaining a strong liquidity position.
02—Key points
Key Highlights
- Total revenues increased by 6% to $47.8 billion in Q2 2024 and by 5% to $90.6 billion in the first half of 2024, compared to the prior year.
- Net income attributable to Ford Motor Company decreased to $1.83 billion in Q2 2024 from $1.92 billion in Q2 2023, and fell to $3.16 billion in the first half of 2024 from $3.67 billion.
- Company Adjusted EBIT saw a significant decline, down to $2.76 billion in Q2 2024 from $3.79 billion in Q2 2023, and down to $5.52 billion in the first half of 2024 from $7.17 billion.
- Ford Blue segment EBIT decreased substantially by $1.14 billion year-over-year in Q2 2024, primarily due to higher warranty and material costs.
- Ford Model e segment continued to report losses, with an EBIT loss of $1.14 billion in Q2 2024, a slight increase from $1.08 billion in the prior year, impacted by lower pricing and volumes.
- Ford Pro segment demonstrated strong performance, with EBIT increasing by $173 million to $2.56 billion in Q2 2024, driven by higher volume and favorable mix.
- Ford Credit reported total net receivables of $137.7 billion at June 30, 2024, up from $126.1 billion at June 30, 2023, with EBT of $343 million in Q2 2024, down from $390 million in Q2 2023.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2024, Ford Motor Co kept $0.04.
- Revenue$47.81B100.0%
- Cost of revenue−$40.49B84.7%
- Gross profit$7.32B15.3%
- Operating costs−$5.44B11.4%
- Operating income$1.88B3.9%
- Interest, other & tax−$50.0M0.1%
- Net income$1.83B3.8%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed July 25, 2024Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Revenue | $47.81B$44.95B | +6.3% |
| Cost of Revenue | $40.49B$37.47B | +8.1% |
| Gross Profit | $7.32B$7.48B | −2.2% |
| SG&A Expenses | $2.68B$2.75B | −2.6% |
| Operating Expenses | $45.92B$42.49B | +8.1% |
| Operating Income | $1.88B$2.46B | −23.5% |
| Net Income | $1.83B$2.02B | −9.1% |
| EPS (Basic) | $0.46$0.48 | −4.2% |
| EPS (Diluted) | $0.46$0.47 | −2.1% |
| Shares Outstanding (Basic) | 3.98B4.00B | −0.4% |
| Shares Outstanding (Diluted) | 4.02B4.04B | −0.5% |
05—Questions
Frequently Asked Questions
What is the company's overall financial performance for the reported period?
Ford Motor Company reported an increase in total revenues for both the second quarter and the first half of 2024 compared to the prior year. However, net income and adjusted EBIT have declined. This is primarily due to significant cost pressures in the Ford Blue segment and ongoing losses in the Ford Model e segment, despite strong performance in Ford Pro and increased receivables at Ford Credit.
How is the company managing the challenges in the electric vehicle (EV) market?
Ford is experiencing lower-than-anticipated EV adoption rates and pricing pressures, which has led to a projected substantial EBIT loss for the Ford Model e segment in 2024. The company is adjusting its spending, production, and product launches to better match EV demand and has incurred expenses related to regulatory compliance credits and supplier payments. Despite these challenges, Ford continues to invest in its EV strategy and battery production.
What is the outlook for Ford's different business segments?
Ford Pro is expected to continue its strong performance with projected EBIT of $9 billion to $10 billion for 2024, driven by sustained growth and favorable mix. Ford Blue's EBIT is projected between $6 billion to $6.5 billion, reflecting cost efficiencies offset by increased product, manufacturing, and warranty costs. Ford Model e is anticipated to incur an EBIT loss of $5 billion to $5.5 billion in 2024 due to pricing pressures and EV investments. Ford Credit's EBT is expected to be around $1.5 billion for the full year.
What is the company's liquidity and capital position?
Ford maintains a strong liquidity position, with total balance sheet cash, cash equivalents, marketable securities, and restricted cash at $34.8 billion as of June 30, 2024. The company targets an ongoing Company cash balance of at least $20 billion, plus significant additional liquidity. Company adjusted free cash flow was $3.2 billion in Q2 2024, and full-year 2024 capital spending is projected between $8 billion to $9 billion.
06—Continue