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FORD MOTOR CO 8-K Report, Financial Results (Feb 6, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 6, 2024
Period End
February 6, 2024
Securities
FF-PCF-PDF-PB
In the record · 2016–202610-K1410-Q328-K283

F filed 14 annual reports (10-K), 32 quarterly reports (10-Q) and 283 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Feb ’18Feb ’18
  2. Leadership change8-K · Mar ’20Mar ’20
  3. Material agreement8-K · Jun ’22Jun ’22
  4. Material agreement8-K · May ’26May ’26

01—Abstract

Summary

Summary of the 8-K filed February 6, 2024. Cited figures are marked; the original filing is the authoritative source.

Ford Motor Company's February 6, 2024 8-K furnishes its fourth-quarter and full-year 2023 earnings release and announces a conference call at 5:00 p.m.

ET. For Q4 2023, revenue rose 4% year-over-year to $46 billiona, but Ford reported a net loss of $526 million, driven by a $1.7 billion pretax non-cash pension/OPEB remeasurement loss. Adjusted EBIT was $1.1 billion.

For full-year 2023, revenue grew 11% to $176 billion, net income improved to $4.3 billionb, and adjusted EBIT of $10.4 billion was essentially flat and at the high end of guidance. Operating cash flow was $14.9 billion and adjusted free cash flow was $6.8 billion, well above the $5.0–$5.5 billion outlook. The segment picture was mixed.

Ford Pro was the standout, with 19% revenue growth and $7.2 billionc EBIT at a 12.4% margin. Ford Blue delivered $7.5 billion EBIT, while Ford Model e lost $4.7 billion amid EV price competition and investment. Ford Credit earned $1.3 billion pretax, below the prior year.

Management declared a first-quarter regular dividend of $0.15d and a supplemental dividend of $0.18 per share, and it targets shareholder distributions of 40–50% of adjusted FCF. For 2024, Ford guided to adjusted EBIT of $10–12 billion, adjusted FCF of $6–7 billion, and capex of $8–9.5 billion. The outlook assumes flat to modestly higher U.S. industry volume and lower pricing, and it includes $2 billion in industrial cost reductions.

Ford Model e is guided to a $5.0–5.5 billion EBIT loss. Management also flagged an objective to lift adjusted ROIC from about 14% to 20% over the next couple of years, and said it is deferring some EV capital investments until demand justifies them.

02—Key points

Key Highlights

  1. Q4 2023 revenue rose 4% to $46 billion, but GAAP net loss was $526 million, mainly from a $1.7 billion pretax non-cash pension/OPEB remeasurement loss
  2. Full-year 2023 revenue grew 11% to $176 billion; net income improved to $4.3 billion; adjusted EBIT was flat at $10.4 billion, at the high end of guidance
  3. Adjusted free cash flow of $6.8 billion beat the $5.0–$5.5 billion outlook; operating cash flow was $14.9 billion and year-end liquidity exceeded $46 billion
  4. Ford Pro EBIT reached $7.2 billion (12.4% margin) on 19% revenue growth; Ford Blue EBIT was $7.5 billion; Ford Model e lost $4.7 billion
  5. 2024 guidance: adjusted EBIT of $10–12 billion, adjusted FCF of $6–7 billion, capex of $8–9.5 billion, with Model e expected to lose $5.0–5.5 billion
  6. Declared Q1 2024 regular dividend of $0.15 and supplemental dividend of $0.18 per share, payable March 1 to holders of record February 16
  7. Management targets raising adjusted ROIC from about 14% in 2023 to 20% over the next couple of years, and is deferring some EV investments until demand supports acceptable returns

03—Questions

Frequently Asked Questions

  1. Why did Ford report a Q4 2023 net loss if adjusted EBIT was positive?

    The net loss of $526 million was driven mainly by a $1.7 billion pretax, non-cash loss from remeasuring pension and other postretirement employee benefit plans. Adjusted EBIT, which excludes these special items, was $1.1 billion, so the operating business was profitable in the quarter.

  2. What does the 2024 guidance imply for Ford's profitability and cash generation?

    Ford guided to adjusted EBIT of $10–12 billion and adjusted free cash flow of $6–7 billion for 2024, compared with $10.4 billion and $6.8 billion in 2023. That implies roughly flat-to-modestly higher earnings, with Ford Pro expected to earn $8–9 billion and Ford Blue about $7–7.5 billion, offset by a Model e loss of $5.0–5.5 billion.

  3. How significant is the EV business drag for Ford?

    Ford Model e lost $4.7 billion of EBIT in 2023 and is guided to lose $5.0–5.5 billion in 2024. Management attributes this to a highly competitive EV pricing environment and investment in next-generation EVs. Ford is also deferring some EV capital spending until demand and returns justify it, which is a key focus for investors.

  4. What is Ford's capital return policy?

    Ford targets distributions of 40% to 50% of adjusted free cash flow to shareholders. For Q1 2024 it declared a regular dividend of $0.15 and a supplemental dividend of $0.18 per share, payable March 1, 2024, to shareholders of record on February 16, 2024.

04—Continue

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