===Ford Motor (F) reported earnings on Thur 2 Feb 23 (a/h)

 

Ford Motor misses by $0.11, beats on revs, misses FY22 adjusted EBIT outlook; expects FY23 adjusted EBIT of $9-11 bln, mild recession in U.S. and moderate recession in Europe

• Reports Q4 (Dec) earnings of $0.51 per share, excluding non-recurring items, $0.11 worse than the S&P Capital IQ Consensus of $0.62; automotive segment revenues rose 18.4% year/year to $41.8 bln vs the $40.73 bln S&P Capital IQ Consensus.
  • FY22 adjusted EBIT grew 4% yr/yr to $10.4 bln, below prior guidance of $11.5 bln.
    
  • Co added, "We should have done much better last year. We left about $2 bln in profits on the table that were within our control, and we're going to correct that with improved execution and performance."
• Outlook: Co anticipates FY23 adjusted EBIT of $9-11 bln and adjusted free cash flow of about $6 bln.
  • Behind its estimates are a variety of likely tradeoffs:
    • Headwinds include mild recession in the U.S. and moderate recession in Europe; higher industrywide customer incentives as vehicle supply/demand rebalances; lower profit from Ford Credit; continued strong U.S. dollar.
    • Tailwinds include supply chain improvements and higher industry volumes; lower costs of goods sold.
• In North America: EBIT for FY22 was up $1.8 bln to $9.2 bln, with a margin of 8.4%, on higher net pricing and increased volume, partially offset by commodities and other inflation-related cost increases.
• In Europe: EBIT for FY22 was slightly above break-even, but below its expectation.
• Co reported a FY22 loss of about $600 mln in China.
• Declared Q1 dividend of $0.15/share plus supplemental dividend of $0.65/share, enabled by strong FCF and nearly complete monetization of stake in Rivian (RIVN).