Ford records $2 billion loss in 2022, says profits still ‘on the table’
Ford Motor Co. late Thursday reported a $2 billion loss for the year and inconsistent quarterly results, blaming “ingrained” cost and system shortcomings that have thwarted its hopes of becoming a successful company. you are more agile.
“I will start by addressing the obvious. CEO Jim Farley said on a conference call after the results. “To say I’m disappointed is an understatement, because that year could have been so much more for us at Ford.”
earned $1.3 billion, or 32 cents a share, in the fourth quarter, compared with $12.3 billion, or $3.03 a share, in the same period last year.
Adjusted for one-time items, the company earned 51 cents a share. Revenue rose 17% to $44 billion.
Analysts polled by FactSet expect Ford to report adjusted earnings of 62 cents a share on revenue of $41.4 billion.
Ford stock fell more than 6% in extended trading after the results, holding around those levels as the call continued. It ended the normal trading day with a 3.8% gain.
“We have problems that are deeply rooted in our industrial system and have proven difficult to root out,” says Farley.
Ford announced the reorganization last March, fix its EV business and establish businesses for older conventional energy vehicles as well as for trucks and other commercial vehicles.
Farley told investors that for “any transformation of this magnitude,” some parts move faster than others, though he remains optimistic about the plan.
For 2023, Ford has driven EBIT between $9 billion and $11 billion, but warned that headwinds include the possibility of a “mild” recession in the US and a “moderate” recession in Europe, higher consumer incentives across the industry and “continued” strong dollar.
However, the catalysts include supply chain improvements and higher industrial volumes as well as lower costs for goods, logistics and other aspects of the business, it said.
The automaker declared a first-quarter regular dividend of 15 cents a share and a supplemental dividend of 65 cents a share, saying the additional dividend reflects Ford’s share earnings. in EV startup Rivian Automotive Inc.
Ford said that dismantling process began in May and is “almost complete now.”
The company said it will hold an investor event on March 23, which it calls a “teach in” about the new structure.
Ford said Monday that it is “significantly increasing” production of the Mustang Mach-E electric SUV by 2023 and discount.
The Mach-E is the third best-selling electric vehicle in the U.S. by 2022, “and the price update is part of Ford’s plan to keep this SUV competitive in a rapidly changing market,” Ford said at the time.
earlier this month slashed the prices of some of its models, including the Model Y compact SUV and the cheaper Model 3 sedan, in the US and some European countries by 6% to 20%.
reported fourth-quarter earnings on Tuesday and the CEO Mary Barra says automaker has no plans to cut pricessays that GM’s cars are priced “right where they should be.”
See more: Tesla and Ford are cutting car prices, but GM says it won’t happen
Ford stock has lost about 31% over the past 12 months, compared with a roughly 9% drop for the S&P 500 index