Ford (F) is scheduled to report fourth-quarter and full-year results after the bell on Tuesday, with a focus on its changing EV game plans as the company moves into hybrid production. The results came after GM reported strong operating results and a profit outlook that showed the overall strength of the U.S. auto sector.
Ford is expected to report top-line sales of $40.35 billion in the current quarter, as the effects of the United Auto Workers (UAW) strike lingered into the early fourth quarter, according to a Bloomberg report. , this result would be a 3.5% decrease compared to the same period last year. In terms of profitability, consensus estimates are for Ford to report adjusted EPS of $0.13 and adjusted EBIT (earnings before interest and taxes) of $988.2 million.
Last year, Ford split its business units. Ford Blue is the traditional gasoline vehicle business, Ford Model E is the EV division, and Ford Pro is the commercial and super heavy truck business. According to Bloomberg consensus:
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Ford Blue is expected to have sales of $24.52 billion and EBIT of $866.5 million.
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Model e is expected to generate revenue of $1.91 billion and EBIT loss of $1.34 billion
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Ford Pro's sales were $13.86 billion and EBIT was $1.43 billion.
Regarding guidance, Ford reinstated its 2023 earnings outlook following ratification of its collective bargaining agreement with the UAW. Ford said it expects full-year adjusted EBIT of $10 billion to $10.5 billion, including $1.7 billion in strike-related lost profits.
With GM releasing a 2024 profit outlook that matches its original 2023 outlook before the UAW strike, investors will be watching to see if Ford can accomplish the same or even improve. . Before the strike, Ford had projected 2023 profits of $11 billion to $12 billion.
The focus is on Ford's Model e EV business, which has seen major changes over the past year as business growth has slowed. Last quarter, Ford Chief Financial Officer John Lawler said the company would “push out” $12 billion in EV investments if production capacity was needed. Ford also delayed construction of a new battery plant in Michigan (which will use technology licensed from China's CATL) and scaled back battery production. The factory is scheduled to start operating in 2026.
In early January, Ford laid off 1,400 employees from production of the F-150 Lightning EV, a sign that demand appears to be slowing for the EV pickup vehicle, which is undergoing a major overhaul but is seeing higher prices. Shifts were reduced as supply was adjusted accordingly. “We continue to see growth, albeit at a slower pace. We are adapting to that growth,” Ford Model e spokesperson Martin Günsberg told Yahoo Finance.
Ford also saw its EV sales drop by more than 10% in January, due in large part to a drop in sales of the Mustang Mach-E, which lost eligibility for the federal EV tax credit on January 1st. However, while the company's overall car sales increased, hybrid sales soared more than 40%. Ford said it is pushing to bring more hybrid vehicles to market to meet customer demand.
Ford's strong performance in January was a continuation of what the company was seeing in 2023. The company reported last month that total U.S. sales rose 7.1% to about 1,995,912 units, making 2023 the best year since 2020 for the Dearborn-based automaker. Ford said sales in its truck business were strong, with 1,081,777 trucks and vans sold in 2023, an increase of 13%. Growth across Ford nameplates was particularly strong for the Bronco Sport (up 28.1%), Edge (up 24.1%) and Lincoln Navigator (up 32.9%).
Sales of Ford's hybrid vehicles and EVs were also a highlight, with sales increasing by 25.3% and 17.9% in 2023, respectively.
Pras Subramanian is a reporter for Yahoo Finance.you can follow him twitter And even more Instagram.
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