Ford sticks to 2022 profit forecast

In the second quarter of this year, Ford posted revenue of $40.2 billion on a 35% increase in wholesale shipments together with favourable pricing and vehicle mix. Company net income was$667 million, a margin of 1.7%, which included a mark-to-market loss on Ford’s stake in Rivian.

Adjusted earnings before interest and taxes was $3.7 billion, an adjusted EBIT margin of 9.3%.

Ford affirmed its guidance for full-year 2022 results: adjusted EBIT of $11.5 billion to $12.5 billion, up 15% to 25% from 2021; adjusted free cash flow of $5.5 billion to $6.5 billion.

The results were seen by analysts as better than expected.

The company’s full-year 2022 guidance continues to assume 10% to 15% growth in vehicle wholesales from 2021, along with significantly higher profits in North America; collective profitability from other regional markets; strong earnings before taxes, though lower than last year, from Ford Credit; and modest improvement in Mobility and Corporate Other.

Ford CFO John Lawler said that demand and the resulting order bank is – and is expected to remain – strong.

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