Ford Motor Company's Quarterly Report on Form 10-Q for the Quarter Ended March 31, 2024
Ford Motor Co’s Q1 2024 financial report reveals a strong performance, with increased revenue and profits driven by higher vehicle sales and improved operational efficiency. The company’s focus on electric vehicles and autonomous driving technology is expected to continue driving growth in the coming quarters.
Overview
Ford’s net income was $1.3 billion in the first quarter of 2024, down from $1.8 billion in the first quarter of 2023. Revenue increased 3% to $42.8 billion. The company is transitioning to electric vehicles, with sales of 20,223 electric vehicles in the U.S. in the quarter.
Ford expects full-year 2024 adjusted EBIT (earnings before interest and taxes) of $10-12 billion and adjusted free cash flow of $6.5-7.5 billion. This outlook assumes flat to modest U.S. industry growth and $2 billion of cost reductions.
Financial Performance
The decrease in net income was primarily driven by lower earnings at the Ford Blue and Ford Model e segments, offset partially by higher earnings at Ford Pro. Ford Blue earnings were impacted by lower F-150 sales during the launch of the new model. Ford Model e had lower revenue and higher costs. Ford Pro benefited from the launch of the new Super Duty trucks.
Revenue and Profit Trends
Revenue increased in the quarter due to higher wholesales and favorable mix at Ford Pro. However, earnings decreased due to lower volume, unfavorable mix, and higher costs at Ford Blue and Ford Model e. Ford is investing significantly in new electric vehicles ahead of planned launches.
Strengths and Weaknesses
A key strength is Ford’s strong position in trucks and commercial vehicles, with the successful launch of the new Super Duty generating growth for Ford Pro. The transition to electric vehicles remains a challenge in the near term, with Ford Model e expected to lose $5-5.5 billion in 2024.
Future Outlook
Ford expects earnings and cash flow to improve in 2024 driven by growth at Ford Pro, cost cuts, and improved performance at Ford Blue. However, losses will continue at Ford Model e as Ford ramps up investments in electric vehicles. Ford Credit is expected to contribute steady earnings. Overall results will depend on macroeconomic conditions.
