THE Ford Motor Company (NYSE:F) said its adjusted operating profit more than tripled from a year ago to $3.7 billion as it was able to overcome ongoing supply disruptions to deliver more of its new products to customers.
Here are some important numbers:
- Adjusted earnings per share: $0.68, up from $0.12 in Q2 2021. Wall Street analysts polled by Refinitiv expected $0.45 on average.
- Vehicle income: $37.91 billion, up from $24.13 billion in the second quarter of 2021. Analysts had expected $34.32 billion on average, according to Refinitiv.
- Real benefits: $667 million versus $561 million in Q2 2021.
- Adjusted profit margin before interest and tax (EBIT): 9.3%, against 3.9% in the second quarter of 2021
Ford shares rose nearly 11.8% in extended trading in New York after the news broke.
Ford Motor Company is also traded in B3 through the ticker (BOV:FDMO34).
Ford’s U.S. sales rose 1.8% in the second quarter from a year earlier, driven by an 8% year-over-year increase in sales of Ford-branded sedans and crossovers as the company was able to build more popular models for its dealerships. United States. That was good news for the company’s bottom line, as these incremental SUV sales largely replaced sales of Ford’s currently inactive and less profitable vehicles.
But, the company said, inflation — specifically, higher prices for essential goods and transportation — offset those gains to some extent.
Chief Financial Officer John Lawler said that despite headwinds from inflation, Ford is sticking to its full-year guidance. It still expects adjusted EBIT of $11.5 billion to $12.5 billion for the year, which would represent growth of 15% to 25% over last year, and free cash flow of $5, 5 billion and US $ 6.5 billion.
Lawler reiterated that Ford is targeting a company-wide adjusted EBIT margin of 10% — and an EBIT margin of 8% for its EVs — by 2026.
Ford said its European shipments rose about 22% from last year to about 222,000 vehicles, thanks to improved supply and strong demand for its commercial vehicles. But Ford’s overall China shipments fell 24% in the second quarter to 114,000 vehicles, amid prolonged government shutdowns around Shanghai and other parts of eastern China.
Ford is in the midst of a major restructuring, devoting more resources to electric vehicles and cutting $3 billion in annual costs from its efforts to promote internal combustion. Starting next year, Ford will produce results for three business units: Ford Blue, representing its legacy internal combustion business; Ford Model e, its electric vehicle business, and Ford Pro, its commercial vehicle business.
Ford said last week 100% battery equipment guarantee. are required to deliver 600,000 electric vehicles per year by the end of 2023 and are on track to build 2 million per year by 2026.
With news from CNBC