On February 6, 2024, Ford Motor Co (F, Financial) released its 8-K filing, detailing the financial performance for the fourth quarter and full year of 2023. Ford, a leading global automotive manufacturer known for its Ford and Lincoln brands, has demonstrated resilience in a challenging market. The company, which operates Ford Blue for combustion engines and Ford Model e for electric vehicles, has a significant market presence in the United States, Europe, and China.
In the fourth quarter, Ford reported a revenue increase to $46 billion, up 4% from the previous year, driven by favorable net pricing and comparable vehicle volumes. However, the quarter also saw a net loss of $526 million, primarily due to a $1.7 billion pretax, non-cash accounting loss related to pension and other postretirement employee benefits plans. The adjusted EBIT for the quarter was $1.1 billion.
For the full year, Ford's revenue rose by 11% to $176 billion, with net income improving to $4.3 billion. Adjusted EBIT was essentially flat year-over-year at $10.4 billion, at the high end of the company's guidance. Operating cash flow was robust at $14.9 billion, and adjusted free cash flow significantly exceeded expectations at $6.8 billion. Ford's balance sheet remains strong, with nearly $29 billion in cash and over $46 billion in liquidity at year-end.
President and CEO Jim Farley highlighted the success of Ford's customer-centered business segments, stating,
We’re the only company that gives customers such a wide range of choices – gas, hybrid, and electric vehicles – made possible by our Ford+ plan and the talented team that’s carrying it out,"and emphasizing the potential for growth and profitability in the coming year.
Despite the slower-than-expected mainstream adoption of electric vehicles (EVs), Ford remains committed to its EV strategy, with the F-150 Lightning pickup and Mustang Mach-E SUV increasing sales volumes year-over-year. The company is also seeing quality improvements and has identified $2 billion in cost reductions across its global industrial system.
Looking ahead, Ford anticipates a full-year adjusted EBIT of $10 billion to $12 billion for 2024 and aims to generate $6 billion to $7 billion in adjusted free cash flow, with capital expenditures of $8 billion to $9.5 billion. The guidance assumes flat to modestly higher full-year U.S. industry volume and overall lower vehicle pricing.
Value investors may find Ford's commitment to returning value to shareholders, demonstrated by its regular and supplemental dividends, and its focus on capital efficiency and cost reductions, particularly appealing. The company's strong liquidity position and positive outlook for 2024 suggest a potential for continued financial stability and growth.
For a more detailed analysis of Ford's financial performance and future prospects, investors are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from Ford Motor Co for further details.
