Ford (F) announced its third-quarter results after the bell on Monday, and although sales exceeded, full-year forecasts remained at the lower end. Ford’s results come after rival GM’s third-quarter results were a huge hit, boosting its profit outlook for the third time this year.
Ford reported sales of $46.2 billion compared to estimates by Bloomberg of $41.9 billion. This was down compared to the $47.8 billion reported in the previous quarter, but up 5% from the $43.8 billion reported a year ago. Ford reported adjusted EPS of $0.49, in line with expectations, and adjusted EBIT (earnings before interest and taxes) of $2.6 billion. Ford said net income was $900 million, impacted by previously disclosed one-time charges related to EVs of $1 billion.
Ford has lowered its full-year profit forecast and now expects adjusted EBIT in 2024 to be “approximately $10 billion,” at the lower end of the previous range of $10 billion to $12 billion. In a press conference, Ford Vice Chairman and Chief Financial Officer John Lawler cited “supplier disruption” as the reason for the decline in sales of the Ford Pro and Ford Blue.
Ford shares fell more than 5% in after-hours trading.
“We continue to build on Ford’s advantages over competitors in key areas including Ford Pro, international operations, software and next-generation electric vehicles,” Ford President and CEO Jim Farley said in a statement. “We have made strategic decisions and taken tough actions to create a positive impact.” Over time, bending the cost and quality curve, a key focus of our team, will yield significant financial benefits. ”
As part of its Ford+ plan, Ford has divided its operations into three divisions. Ford Blue for the traditional gasoline-powered business, Ford Model e for the EV division, and Ford Pro for the commercial and very heavy truck business. Analysts expect the following in the third quarter:
Ford Blue: Sales of $26.2 billion, EBIT of $1.627 billion
Model e: $1.2 billion in revenue, -$1.224 billion in EBIT
Ford Pro: $15.7 billion in sales, $1.814 billion in EBIT
Ford said it now expects a full-year loss for the Model E to be about $5 billion, slightly lower than previously expected of $5.5 billion.
Ford announced earlier this month that its third-quarter U.S. vehicle deliveries rose 4.3% from a year earlier to 504,039 vehicles, but were still down from the previous quarter’s deliveries of 536,050 vehicles. According to Ford, EV sales increased 12% year over year, thanks to the Ford Lightning pickup and Ford E-Transit van. Sales of Ford’s hybrid vehicles rose 38% year-on-year, led by the Maverick pickup truck.
A row of unsold 2024 Mustang Mach-E electric utility vehicles line up at a Ford dealership in Denver on May 19, 2024. (AP Photo/David Zalubowski, File) · ASSOCIATED PRESS
Meanwhile, GM has raised its guidance every quarter this year, with indicators such as adjusted EBIT of $14 billion to $15 billion (previously $13 billion to $15 billion).
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