DETROIT — Ford Motor on Thursday raised its 2023 guidance after second-quarter earnings significantly beat Wall Street expectations, boosted by strong pricing and demand for the automaker's traditional vehicles even as adoption of EVs took hold slower than the company expected.
Ford increased its full-year adjusted earnings forecast to a range of between $11 billion and $12 billion, up from a prior forecast $9 billion and $11 billion. It also upped its expected adjusted free cash flow from $6 billion to $6.5 billion and $7 billion.
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There was pressure on Ford to raise its guidance after crosstown rival General Motors raised its yearly guidance Tuesday for the second time this year.
Ford CFO John Lawler said vehicle demand and pricing were "holding up" better than the company anticipated at the beginning of the year for its traditional businesses. However, he said, EV adoption is taking place more slowly than the company expected in part because of higher costs.
The automaker earlier this month cut pricing by as much as $10,000 on the F-150 Lightning electric pickup as production and inventory levels increase.
The automaker's traditional business operations, known as Ford Blue, earned $2.31 billion during the quarter, while it's Ford Pro commercial business earned $2.39 billion. Its "Model e" electric vehicle unit lost $1.08 billion from April through June.
The company said it now expects to lose $4.5 billion on the EV business this year, widening losses from roughly $3 billion a year earlier.
Here's how Ford did during the second quarter, compared with what Wall Street expected based on average estimates compiled by Refinitiv:
- Adjusted earnings per share: 72 cents vs. 55 cents expected
- Automotive revenue: $42.43 billion vs. $40.38 billion expected
On an unadjusted basis, Ford reported net income of $1.92 billion, or 47 cents per share, substantially up from a year earlier when it earned $667 million, or 16 cents per share.
The automaker said total revenue for the quarter was $45 billion, up 12% from $40.2 billion a year earlier.
Ford said its adjusted earnings before interest and tax, or adjusted EBIT, jumped to $3.79 billion, up from $3.72 billion a year ago. Its adjusted margin dropped to 8.4%, from from 9.3% in the year-ago period, amid increased production and sales.
It's the second quarterly report in which the automaker broke down its financial results by business unit, instead of by region. The Detroit automaker earlier this year released revised results for 2021 and 2022 according to the new structure.
— CNBC's Michael Bloom contributed to this report.
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July 27, 2023 at 11:00PM
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Ford Motor (F) earnings Q2 2023 - CNBC
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